The Federal Deposit Insurance Corporation’s decision to take over Silicon Valley Bank on Friday is likely to leave many digital health companies scrambling to pay employees and suppliers.
SVB, the nation’s16th largest bank and headquartered in Santa Clara, California, was a big bank for tech companies, startups and venture capital firms. The bank said on its website that it had $78.8 billion in healthcare deposits and investments as of December.
Experts say SVB’s failure is another sign the digital health venture funding market is long past its peak. Funding has slowed down considerably from the highs of 2021. While the total for 2022 was the second-best year since Digital Health Business & Technology started tracking the data in 2010, the fourth quarter was the lowest quarterly funding total in five years. Most experts say 2023 will be worse.