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Silicon Valley Bank Collapse Worst Bank Failure Since 2008

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Silicon Valley Bank Collapse

According to TechCrunch, over 60 YC-backed Indian startups have more than $250,000 stuck in accounts with Silicon Valley Bank, and nearly two dozen have more than $1 million tied to the lender, demonstrating how the worst bank failure since the 2008 financial crisis is also affecting firms 8,000 miles away.

Dozens of young Indian startups backed by YC, Accel, Sequoia India, Lightspeed, SoftBank, and Bessemer Venture Partners banked with Silicon Valley Bank, sometimes as their sole banking partner, and were unable to withdraw funds on Thursday, according to multiple people familiar with the situation.

VCs are wary of disclosing the names of the affected startups for fear of jeopardizing the young firms’ ability to raise capital in the future. Silicon Valley Bank, the 16th largest bank in the United States and a lifeline for startups, was shut down by regulators on Friday, citing “inadequate liquidity and insolvency.” The Federal Deposit Insurance Corporation will work to recover “the maximum amount possible from asset disposition,” according to its website.

Many venture capitalists reported that some Indian firms could not withdraw their deposits from Silicon Valley Bank on time because they did not have another US banking account readily available to hold that capital.

india startupsIndian startups affected by Silicon Valley Bank Collapse

Many Indian startups incorporate in Delaware to raise capital from US venture firms such as Y Combinator. Some SaaS companies are registered in the United States because, despite operating from India, they want to serve international markets and be perceived as a US companies.

Furthermore, for many firms that “flipped” their home base from India to the United States, Silicon Valley Bank was the preferred choice, according to another person familiar with the matter, citing the fact that SVB sponsored many events in India as the lender’s executives pushed to strengthen ties with Indian firms.

According to a partner at one of the top venture funds, nearly all Indian SaaS startups with a significant presence in the United States banked with SVB. Over a dozen Indian SaaS unicorns and many more “soonicorns” are based in the United States.

Many of these young firms did not diversify their funds across multiple banks because operators prefer to avoid increasing administrative costs in the early days of a business. A US-based investor, who spoke anonymously, said he knew that many Indian firms had $4-10 million in their SVB accounts.

SVB was often the default bank for Indian SaaS startups and others backed by YC, who set up shop in the United States and raised their first round there. Mirae Asset’s India head, Ashish Dave, tweeted. “Uncertainty kills them. Growth stocks are safer because they are more diverse.”

Silicon Valley Bank whitehouse

White House and Treasury Department

The failure of SVB has affected more than 1,000 Y Combinator-backed startups, according to Garry Tan, president of Y Combinator. “30% of YC companies exposed through SVB will be unable to pay employees in the next 30 days,” he tweeted.

Meanwhile, California Gov. Gavin Newsom says he’s working with the FDIC and the White House after Silicon Valley Bank was closed down by regulators on Friday.

“I’ve been in contact with the highest levels of leadership at the White House and Treasury in the last 48 hours. Everyone is collaborating with the FDIC to restore order as soon as possible to protect jobs, people’s livelihoods, and the entire innovation ecosystem that has served as a tent pole for our economy, “On Saturday, Newsom stated.

According to a press release issued by the FDIC on Friday, SVP was closed by the California Department of Financial Protection and Innovation, which appointed the FDIC as receiver of the bank’s insured deposits.

Geoff Thomas is a seasoned staff writer at VORNews, a reputable online publication. With his sharp writing skills and deep understanding of SEO, he consistently delivers high-quality, engaging content that resonates with readers. Thomas' articles are well-researched, informative, and written in a clear, concise style that keeps audiences hooked. His ability to craft compelling narratives while seamlessly incorporating relevant keywords has made him a valuable asset to the VORNews team.

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Britain Must Be Ready for War in 3 Years, Warns New Army Chief

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Britain Must Be Ready for War in 3 Years, Warns New Army Chief

The new head of the Army has stated that Britain must be prepared to fight a war within three years.

Gen Sir Roland Walker has issued a warning about a variety of risks in what he calls a “increasingly volatile” environment.

However, he stated that war was not inevitable and that the Army had “just enough time” to prepare to prevent conflict.

He stated that the Army’s fighting capacity would be doubled by 2027 and tripled by the end of the decade.

Gen Walker warned that the Britain was under threat from a “axis of upheaval” in his first speech as Prime Minister on Tuesday.

Among the primary concerns confronting the Britain in the next years, as noted by the general in a briefing, is an enraged Russia, which may seek vengeance on the West for helping Ukraine, regardless of who wins the war.

He stated: “It doesn’t matter how it finishes. I believe Russia will emerge from it weaker objectively – or completely – but still very, very dangerous and seeking some form of retaliation for what we have done to assist Ukraine.”

Britain’s Government Defence Review and Military Challenges

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He also warned that China was determined to retake Taiwan, and Iran was likely to seek nuclear weapons.

He stated that the threats they posed may become particularly acute in the next three years, and that these countries had formed a “mutual transactional relationship” since the war in Ukraine, sharing weaponry and technology.

However, he stated that the path to conflict was not “inexorable” if the UK re-established credible land troops to assist its deterrent strategy for avoiding war.

In his speech, he described his force of slightly over 70,000 regular troops as a “medium-sized army” and made no direct call for additional resources or men.

However, he pushed the British Army to adapt swiftly, focussing on technology such as artificial intelligence and weaponry rather than numbers.

His ultimate goal is for the Army to be capable of destroying an opponent three times its size.

This would entail firing quicker and farther, he said, aided by lessons learnt from the Ukraine war.

The general’s speech at the Royal United Services Institute land warfare conference comes only one week after the government began a “root and branch” defence review to “take a fresh look” at the challenges facing the armed services.

Defence Secretary John Healey launched the assessment, describing the existing status of the armed forces as “hollowed-out” and stating that “procurement waste and neglected morale cannot continue”.

According to the most recent Ministry of Defence (MoD) numbers from April 2024, the Britain’s regular Army forces total 75,325 troops (excluding Gurkhas and volunteers).

That figure has been declining in recent years, as recruiting has failed to match retention. The previous Conservative administration lowered the planned headcount from 82,000 to 72,500 by 2025.

Members of the NATO military alliance have agreed to spend at least 2% of GDP on defence by 2024, but several countries are unlikely to fulfil this goal.

The Britain presently spends 2.3% of its GDP on defence. Prime Minister Sir Keir Starmer has previously stated that the defence review will include a “roadmap” for increasing this to 2.5%, however he has yet to provide a date for this promise.

Source: BBC

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Katie Ledecky Hopes For Clean Races At Paris Olympics In The Aftermath Of The Chinese Doping Scandal

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ledecky

PARIS — Katie Ledecky is looking for clean Olympic races. On Wednesday, Hope had pretty much reached her limit.

The American swimmer hopes to add to her six gold medals as she competes in the 400, 800, and 1,500 meters at the Paris Games. Her program starts with the heavy 400 on Saturday, featuring Ariarne Titmus and Summer McIntosh.

ledecky

Katie Ledecky | ESPN Image

Katie Ledecky Hopes For Clean Races At Paris Olympics In The Aftermath Of The Chinese Doping Scandal

The 27-year-old Katie is competing in her fourth Summer Olympics, but the first since a doping scandal involving almost two dozen Chinese swimmers who tested positive for a banned chemical before the Tokyo Games — yet were permitted to compete with no consequences. The controversy has raised serious worries regarding the effectiveness of anti-doping initiatives.

ledecky

Katie Ledecky | Vogue Image

“I hope everyone here is going to be competing clean this week,” Ledecky claimed. “But what truly counts is, were they training cleanly? Hopefully this has been the case. Hopefully, there has been worldwide testing.”

The International Olympic Committee has expressed concern over the ongoing US investigation into possible doping by Chinese swimmers. While awarding the 2034 Winter Olympics to Salt Lake City on Wednesday, the IOC urged Utah officials to do whatever they could to stop the FBI investigation.

“I think everyone’s heard what the athletes think,” Katie added. “They seek transparency. They want more answers to the remaining questions. At this point, we are here to race. We are going to race whoever is in the lane next to us.

“We are not paid to conduct the tests, so we trust those who follow their regulations. That applies both today and in the future.

 

ledecky

Katie Ledecky | ESPN Image

Katie Ledecky Hopes For Clean Races At Paris Olympics In The Aftermath Of The Chinese Doping Scandal

SOURCE | AP

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London Heatwave Alert: High Temperatures Set to Soar to 29C Next Week

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London Heatwave Alert High Temperatures Set to Soar to 29C Next Week

As the summer holidays begin, London may experience an official heatwave with temperatures reaching up to 29 degrees Celsius.

The Met Office predicts a long period of sunny and dry weather for London after a soggy spring and summer.

After a cloudy day on Saturday, temperatures are expected to reach 27C on Sunday, with lots of sunlight.

On Monday and Tuesday, temperatures are forecast to peak at 29 degrees Celsius. Monday is forecast to offer more sunlight, while Tuesday may see some gloomy weather.

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Temperatures are expected to remain in the high 20s next week, with lows of approximately 18C.

According to the Met Office, a heatwave is “an extended period of hot weather relative to the expected conditions of the area at that time of year, which may be accompanied by high humidity.”

In the United Kingdom, a heatwave is proclaimed when daily temperatures meet or surpass a certain level for at least three consecutive days.

In London, the heatwave threshold is 28 degrees Celsius.

The Met Office reported that the UK is experiencing hotter and wetter weather on average due to climate change.

The UK experienced its warmest May and April on record this year, despite damp and dismal conditions in many areas.

According to the Met Office’s State Of The UK Climate 2023 report published on Thursday, the UK experienced historic levels of extreme weather last year.

In the United Kingdom, 2023 was the second warmest year on record, bringing storms, flooding, strong heatwaves, and rising sea levels; only 2022 was warmer.

It was 0.8°C higher than the average from 1991 to 2020, and 1.66°C higher than the 1961 to 1990 average.

However, 2023 will be a “cool year” in comparison to 2100, based on the planet’s warming trajectory.

The government’s plan to adapt to the hazards presented by climate change is currently being challenged in the High Court by campaigners who allege the Tory administration’s July 2023 National Adaptation Programme (NAP) fails to adequately address 61 concerns.

Source: The Standard

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