Silicon Valley Bank (SVB), the bank of choice for most startups and venture capitalists, was recently shut down by the Federal Deposit Insurance Corporation (FDIC) after announcing that it lost $1.8 billion in the sale of treasuries and securities. The bank run that followed led to customers taking their money out of the bank, leaving many African startups in a state of panic. Several African startups had funds in SVB as the bank was a lender for startups and asked that startups have deposits in the bank as collateral. However, it was difficult for Africa-based startups to open accounts in the bank. While the situation will become clearer over the next few weeks, uncertainty looms over African startups that have received funding from SVB.

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