Silicon Valley Bank’s (SVB) rapid downfall led to rippling effects in the ecommerce world. The bank backed technology and ecommerce startups over its 40-year history. It sent retailers and vendors into crisis after some high-profile customers removed money from the bank, and others lost access to their deposits.
The Department of The Treasury, The Federal Reserve, and the FDIC issued a joint statement on March 12 announcing SVB customers would have access to their deposits the following day.
Here are some notable ecommerce companies with ties to SVB:
Online gaming company Roblox had 5% of its $3 billion in cash holdings in Silicon Valley Bank, it said in an SEC filing. That amounted to $150 million, an amount Roblox said would not impact operations.
Some Etsy sellers were unable access payments following the “rapid and unexpected collapse of Silicon Valley Bank,” the company confirmed in a forum post. Etsy told Retail Dive the delayed payments only impacted 0.5% of sellers, about 2,700. The website has since resolved the issue, according to an update on the post.
Etsy is No. 17 on Digital Commerce 360’s top 100 marketplaces.
Hims and Hers
Health and wellness company Hims and Hers was only minorly impacted, the company said. The company has “limited cash exposure,” from the collapse, according to a March 10 press release. The “vast majority” of Hims and Hers’ cash and investments are held with other banks, the company said.
Hims and Hers is ranked No. 310 in the Digital Commerce 360 Top 1000 ecommerce retailers in North America.
Online personal styling service Stitch Fix said in an SEC filing that it had a revolving line of up to $100 million in credit. $40 million of that money was from Silicon Valley Bank. However, it has no plans to draw on the credit. Current cash “will be sufficient to meet its working capital and capital expenditure needs for at least the next 12 months and beyond,” the company said.
Stitch fix is ranked No. 46 in the Digital Commerce 360 Top 1000.
Online bathing suit retailer Andie Swim banked with Silicon Valley Bank before it collapsed, CBS reported. Founder Melanie Travis said she could access her account for payroll and other needs but couldn’t move the money.
Andie Swim ranks No. 1058 in the Next 1000, Digital Commerce 360’s database of online retailers ranked Nos. 1,001 to 2,000.
Cost Plus Drugs
Mark Cuban said in a Twitter Spaces interview that the low-cost prescription medication company had $3.1 million in Silicon Valley Bank, Fortune reported. Cuban said leaders were “scrambling” to open new bank accounts, and he was personally writing checks to cover payroll. Cuban also said he personally had between $8 million and $10 million in the bank.
Canadian ecommerce company Shopify experienced a “very minor impact” from the bank’s collapse, CEO Tobi Lutke tweeted on March 11. Lutke wrote that Silicon Valley Bank was one of 12 that the company works with across the U.S. and Canada, and a “small portion of our U.S. operational fund flows” were involved.
Kaz Nejatian, Shopify COO, emailed sellers with an offer to lend them money to make payroll, Lutke shared in another tweet.
“This week has been insanely hard. If we can help, please let us,” Nejatian wrote.
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