Startups that had significant sums at Silicon Valley Bank may not be able to pay employees and could be forced to lay them off.
Lynn Doan, Hannah Miller and Katie Roof
Payroll service provider Rippling notified customers on Friday that some payroll processing had stalled because SVB helped process its payments. The company, a startup itself, switched to JPMorgan Chase, but not soon enough: Paychecks were already “in flight” with SVB and have yet to be paid out — and the firm is still trying to understand what the bank’s collapse on Friday will mean for them, Rippling Chief Executive Officer Parker Conrad said in a Twitter post.
Sarika Bajaj, the CEO of early-stage startup Refiberd, said she had been a customer of Silicon Valley Bank for three years and kept most of the company’s funds there. Bajaj, who was at the Sand Hill Road branch of SVB in California on Friday, tried to make withdrawals but couldn’t and is growing concerned about payroll for her and her two team members.
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