Silicon Valley Bank's (SVB) recent collapse left millions of dollars belonging to African startups and venture capital funds at stake. Although the full extent of the damage is not yet clear, many startups are rethinking their banking options to avoid such eventualities in the future. For example, the Pan-African fund Future Africa, which suffered minimal exposure, is considering opening an account with a global banking institution. Furthermore, more startups are holding their funds in multiple bank accounts in large financial institutions to minimize their risk. SVB had been the preferred option for many US-based investors who mandate that startups domicile their funds in US bank accounts. The bank provided cash management services, better interest rates on deposits, and cheaper wire transfer fees than other financial institutions. However, opening an SVB bank account was not easy for African startups, who often turned to banking-as-a-service platforms like Brex and Mercury. In response to such banking challenges, some startups are building homegrown solutions, but these come with their challenges.

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