Silicon Valley Bank: Deep Dive: How Could Banking Collapses Affect Real Estate

Silicon Valley Bank was closed and taken over by the FDIC this weekend as there was a run on the bank from startup founders and venture capital fund managers. This bank collapse could have significant effect in the Silicon Valley tech scene and be an extinction level event for many startups and even tech VC funds.

What we will analyze is what happened in the SVB crash and how this might potentially affect real estate if numerous regional banks fail. We will also talk about whether a bank like SVB could trigger a general panic and cause a run on the bank of other banks as well.

The people most likely to be hurt are startups and their employees as these companies might not be able to make payroll. Also the long-term affect of a bank like Silicon Valley Bank and its failure could mean many startups that are doing critical work in health care might not be able to get to the point where they can release a product or service or do research that helps the general public.

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