The collapse of start-up backer Silicon Valley Bank this week continues to cause ripples across the tech industry, with Etsy the latest company to voice concerns after announcing a transaction freeze.
“I noticed today my money that was supposed to be deposited to be available tomorrow was never sent to my checking account,” one Etsy seller said in a video posted to TikTok on the handle amgeee1. “Then I get an email saying because of the Silicon Valley Bank they can’t issue my deposit.”
“My money, that I worked hard for, they can’t send to my bank account,” she continued, revealing she cannot pay her mortgage as a result of the transaction freeze. “The money I was expecting to have in my bank account tomorrow they can’t send to me. So why is that my problem?”
The Federal Deposit Insurance Corporation (FDIC) announced Friday that it would close SVB, until then the 16th-largest bank in the U.S., marking the worst U.S. financial institution failure since the Great Recession.
SILICON VALLEY BANK COLLAPSE: MARK CUBAN SAYS FED SHOULD ‘IMMEDIATELY’ TAKE THIS ACTION
The bank held a reputation as a go-to for a number of Silicon Valley industries and startups. Y Combinator, an incubator startup that launched Airbnb, DoorDash and DropBox, regularly referred entrepreneurs to them.
READ ON THE FOX BUSINESS APP
SVB’s collapse was so quick that, hours before its closure, some industry analysts were hopeful that the bank was still a good investment. The bank’s shares had fallen 60% on Friday morning after a similar drop the day before.
Anxious depositors rushed to withdraw their money over concern for the bank’s health, causing its collapse, which may serve as “an extinction-level event for startups,” according to Y Combinator CEO Garry Tan.
Etsy has joined the ranks of companies impacted by the closure, which already include crypto firm Circle, kids retailer Camp and coffee company Compass Coffee. The companies themselves might not have been impacted in each case: Compass Coffee’s troubles trickled down from its payroll provider, who was “severely impacted” by the bank’s closure.
SILICON VALLEY BANK TOUTS FORBES ‘BEST BANK’ NOD DAYS BEFORE BECOMING BIGGEST FAILURE SINCE GREAT RECESSION
Etsy reached out to sellers on Friday to let them know that their payments were frozen because they relied on the bank for some of its accounts, saying only that there would be “a delay” with deposits.
“We are working with our other payment partners to issue your deposit as soon as possible,” Etsy said. The total number of affected sellers remains unknown, but those who have been impacted have taken to social media to tell their stories.
Another “mompreneur” by the name of Amber said she was “freaking out” over the news, according to The Daily Mail.
“I’m a mom of three, I run a small business, I do this from my home,” Amber said, referring to her company Little Miss Lovely Creations. “Those funds feed my family and pay my bills.”
SILICON VALLEY BANK CUSTOMERS LINE UP OUTSIDE CALIFORNIA LOCATION AMID FRANTIC RUSH TO WITHDRAW MONEY
Amanda Nielsen, who runs the shop Flower and Earth mostly through Etsy, said that she’s still getting orders and can’t say when she will be able to fulfill them.
“It’s the worst time to get that kind of email because you can’t do anything for two days,” she told the Mail. “You feel helpless.”
“Pretty much all of my sales are through Etsy. I have another site but I had been thinking of deleting it because pretty much everything comes through Etsy,” she said.
“If this doesn’t get resolved soon I will have to shut down by Etsy account because I just can’t afford to take the risk of processing orders without knowing when I’ll be paid.”
Etsy did not respond to a FOX Business request for comment by time of publication.
Related Quotes
Aiden Pleterski led a lavish lifestyle and owned McLaren sports cars and a Lamborghini — and even rented a plush waterfront home for $45,000 a month.
Short sellers are getting bold again. And they've picked their favorite stock market targets to crash.
Read this before you trade in your gas guzzler.
(Bloomberg) — On the surface, Charles Schwab Corp. being swept up in the worst US banking crisis since 2008 makes little sense.Most Read from BloombergFBI Releases Files on Ivana TrumpSchwab’s $7 Trillion Empire Built on Low Rates Is Showing CracksBinance and Its CEO Sued by CFTC Over US Regulatory ViolationsSaudi National Bank Chair Resigns After Credit Suisse RemarkThe firm, a half-century mainstay in the brokerage industry, isn’t overexposed to crypto like Silvergate Capital and Signature Ba
This year started with a strong rally in the markets, but the past month has seen the positive sentiments start to sputter. The failure of Silicon Valley Bank started fears of a contagion and consequent bank runs, which were only partially offset by Federal regulatory actions. But there’s a growing consensus that it was the Federal actions that set the conditions for the bank crisis, when the central bank raised interest rates to fight inflation. Now, investors are trying to cope with the fallou
Commercial real estate debt and mortgages are a 'serious' threat to the economy, warns the serial entrepreneur and billionaire.
Is it worth paying a financial advisor to manage retirement funds if you are confident in your own financial investment strategies? I feel like I have a solid understanding of long-term investment strategies. And as such, I feel the roughly … Continue reading → The post Ask an Advisor: I Have a ‘Solid Understanding' of Investment Strategies. So Why Should I Pay 1% to a Financial Advisor? appeared first on SmartAsset Blog.
Alibaba will split itself into six units in a bid to unlock shareholder value—the biggest overhaul in the history of one of China's most important companies.
Retirement account withdrawals not only help you cover basic living expenses, but they also can fund the lifestyle you've always envisioned in your golden years. That money, however, can have unintended tax consequences. Required minimum distributions (RMDs) and other withdrawals … Continue reading → The post Social Security Taxes Can Hit You Hard in Retirement. Here's How to Lower Them appeared first on SmartAsset Blog.
Draganfly Inc. (DPRO) delivered earnings and revenue surprises of -172.73% and 46.22%, respectively, for the quarter ended December 2022. Do the numbers hold clues to what lies ahead for the stock?
This money management maven doesn't mince words when it comes to financial faux-pas.
Investors need to pay close attention to First Republic (FRC) stock based on the movements in the options market lately.
(Bloomberg) — Alibaba Group Holding Ltd.’s US shares surged as much as 13% after China’s online commerce leader announced plans to split its $220 billion empire into six business units, a major restructuring that promises to yield several initial public offerings.Most Read from BloombergFBI Releases Files on Ivana TrumpSchwab’s $7 Trillion Empire Built on Low Rates Is Showing CracksBinance and Its CEO Sued by CFTC Over US Regulatory ViolationsSaudi National Bank Chair Resigns After Credit Suiss
These snowbirds are heading south for the winter. And staying put.
'At 24 years of age, Alibaba is welcoming a new opportunity for growth,' Daniel Zhang, CEO of the e-commerce giant, says.
Berkshire Hathaway bought more than $200 million of stock in the energy company and now holds a 23.5% stake worth about $12.6 billion
Aurinia (AUPH) was a big mover last session on higher-than-average trading volume. The latest trend in earnings estimate revisions might help the stock continue moving higher in the near term.
Advanced Micro Devices stock has risen on expectations for continued market share gains in processors for PCs and servers. After a pullback in its shares, is AMD stock a buy right now?
Palantir Technologies, Las Vegas Sands and Informatica have been highlighted in this Screen of The Week article.
The biggest structural overhaul in the Chinese tech company’s history comes days after co-founder Jack Ma returned to mainland China. The stock jumped in U.S. trading.