loader image

Silicon Valley Bank Crisis: What Happened with SVB? How does it Affect the Investors? Everything You Should Know Right Now!

Silicon Valley Bank (SVB) has been making headlines in the finance industry recently due to its ongoing crisis. Many industry experts, analysts, and customers have been discussing and speculating about the current situation and its potential long-term consequences.

For those unfamiliar with Silicon Valley Bank, it is a Santa Clara-based lender specializing in serving the startup industry. According to its website, it is the only publicly listed bank specializing in Silicon Valley and IT businesses. It has a strong presence in the US startup market, working with over half of all venture-backed companies in the country and 44% of the tech and healthcare firms that went public in the country last year.

The crisis began when SVB Financial Group, the parent company of Silicon Valley Bank, sold $21 billion of securities from its portfolio and announced a $2.25 billion share sale to boost the finances. According to analysts, the decision was made due to significant deposit withdrawals from the bank brought on by a wider slowdown in the startup sector. SVB also anticipated a more drastic drop in net interest income.

Many well-known venture capitalists, including Peter Thiel’s Founders Fund, Coatue Management, and Union Square Ventures, were concerned by this revelation. According to sources, these firms gave their portfolio companies instructions to reduce exposure and withdraw funds from the bank. While some have said they will support SVB, other VC firms have requested that their portfolio businesses move part of their funds away from the bank.

The impact on SVB has been significant. Its stock plunged 60% on Thursday, and its bonds posted record declines. Greg Becker, CEO of SVB, conducted a conference call with the bank’s clients, including venture capital investors, to urge them to “stay calm” and prevent a bank run.

If you need some ideas about what to read next, here they are:


The twin shocks of SVB’s problems and the abrupt shutdown of Silvergate Capital Corp. sent ripples through the banking industry and pushed stocks lower. The decline of 7.7% on the KBW Bank Index, a benchmark for banking companies, was the largest in over three years. Large American banks, including Bank of America Corp., Wells Fargo & Co., and JPMorgan Chase & Co., all had declines of at least 5%, and shares of Asian banks followed the trend.

The worst-case scenario for any bank is that it runs out of cash too quickly or experiences severe losses that cause its capital to be depleted, forcing authorities to wind the bank down or sell it to a more formidable competitor. However, SVB’s stock sale should help to prevent that. Time will tell what will happen when US markets reopen.

Steps taken by SVB to Address the Crisis


To address the crisis, SVB has taken steps to shore up its finances, including the share mentioned above sale. Startups withdrawing funds are reportedly seeking other lenders where they can park their cash. Investors in financial companies are keenly monitoring other banks that the slump in the meantime could impact.

The long-term consequences of the crisis for Silicon Valley Bank, the broader finance industry, and its customers are not yet clear. However, the problem has highlighted the risks of investing in the startup industry, particularly for banks that focus on lending to these companies.

The Silicon Valley Bank crisis may result in a loss of business and a tarnished reputation. It may also face increased regulatory scrutiny as a result of the crisis. If the bank is unable to restore investor confidence, it could face further deposit outflows and a decline in its stock price, which could ultimately lead to its failure.

The SVB crisis may also affect the broader finance industry, particularly if other banks that lend to the startup industry face similar problems. Investors may become more alert about investing in the sector, which could lead to a decline in the overall valuations of startup companies.

The SVB controversy could also impact Silicon Valley Bank’s customers, particularly the startup companies that rely on the bank for financing. These companies may face difficulties accessing capital if the bank is unable to lend to them or if investors become more risk-averse.

In conclusion, Silicon Valley Bank’s crisis has sent shockwaves through the finance industry and the startup world. While the bank has taken steps to address the crisis, how this will play out in the long term remains to be seen. The incident highlights the risks of investing in the startup industry, particularly for banks that focus on lending to these types of companies. Only time will tell how the crisis will ultimately impact Silicon Valley Bank, the broader finance industry, and its customers.

What is Silicon Valley Bank:  Silicon Valley Bank, is a Santa Clara-based lender specializing in serving the startup industry.

Join Our Newsletter

Elevate your financial game & join the ranks of elite investors with Secvolt’s exclusive newsletter. 

Join Our Newsletter

Elevate your financial game & join the ranks of elite investors with Secvolt’s exclusive newsletter. 

Don’t just dream of wealth; achieve it with Secvolt. Schedule a call today for personalized guidance on your investment strategy and join the ultra-successful.

Ready to unlock your wealth’s truest potential & cherish affluence?

Secvolt, our hedge fund, sets the bar high with a record-breaking performance of 262% returns in 2022. With the brilliance of our highly advanced quant models and the efficiency of our risk mitigation protocols, we are yet to see a loss!

We’re the perfect ally to help you succeed financially and build the lasting legacy you have always aspired for.

Get in touch today. YOUR LEGACY AWAITS YOU…

Scroll to Top

Subscribe to our Newsletter

Stay up-to-date with the latest news and insights from our team at Secvolt. Subscribe to our newsletter and receive exclusive content delivered straight to your inbox.

Our newsletter includes market analysis, investment strategies, and updates on our hedge funds. By subscribing, you'll gain valuable insights that can help you make informed decisions about your investments.

Permission Required!

To get access to our data room, you need to schedule a call with our team.

Ashish Verma

Ashish Verma is the founder and CTO of Secvolt, with close to 10 years of experience in the IT industry. He has been the technical backbone of the company and has worked tirelessly to make the technical infrastructure robust. He is a passionate entrepreneur who generates solutions that have the potential to bring change.

In order to ease the client’s interaction with Secvolt, he has strived to develop the business’s technological foundation and establish a user-friendly platform. Ashish has also contributed substantially to smoothening the company’s administration and ensuring that there are no lacunae in the broad structure of the organization. 

Early Years

Coming from a middle-class family, he was aware of the problems that people faced while using technology. He sought to create something that was simple to use yet had a powerful effect. As he studied computer science, he became eager to offer a solution to real issues. He began his professional career at Amdocs, where he gained expertise in client management while catering to more than 20 clients. Later, he moved to Citicorp, where he had exposure to the investment industry. His time at Amdocs and Citi enabled him to produce high-standard, efficient, and scalable technical infrastructure.

He left corporate jobs for his startup because he was passionate about working on the concept of a smart city platform. He expanded the concept internationally and even collaborated with Global Dignity-Kuwait. Things didn’t work out for him the first time. He states, “My failures didn’t stop me from experimenting and trying new things.” He rose from the ashes like a phoenix and founded FewerClicks, an End to End IT solution company.

He worked on the creation of Solster Finance, a decentralized financial platform based on the Solana blockchain. He created this platform single-handedly which has helped the team raise a $1M investment and a revenue of more than $5M within 6 months of launching. 

He has previously worked on many blockchain technologies and cryptocurrency ventures, which include Decentralized Finance Applications (Defi), Decentralized Applications (Dapps), File Contracts (SIA, record-keeper), Smart Contracts (rust, solidity), and NFT Development. His experience and effective communication have helped many team members understand Secvolt effectively and the underlying technology it is powered by.

He possesses the ideal combination of strategic thinking and excellent business insight. He is responsible for formulating technical aspects of the company’s strategy to guarantee alignment with business objectives. With his drive to experiment with new technologies, he has helped Secvolt achieve a competitive edge. Being in charge, Ashish never holds back in encouraging the different departments to make profitable use of technology, helping to grow as an unstoppable team at Secvolt!

Hanif Shaikh

Hanif Shaikh is the founder and CMO of Secvolt, with over 8 years of experience in the industry. He plays a crucial role when it comes to the growth of Secvolt. Since the beginning, he has acted as a mentor for each and every employee of the company, and he makes an effort to be accessible to his staff anytime they need him. 

Hanif first entered the Blockchain and Crypto world in 2016, and nothing has stopped him since. He views blockchain as a transparent platform that provides authority and accountability back to the people. He consistently believes that “overcommunication is better than miscommunication.” He has lived by this motto with his staff, clients, and networks.

Early Years

Hailing from Gujrat, a state in India, he is following his dream to contribute to making this world a better place. In the process, he has struggled, made some mistakes, and learned lessons from those mistakes to achieve success in life. His entrepreneurial attitude dates back to his childhood when he learned from his father’s business and aspired to have it all. He came from a humble background and had ambitions to succeed in life.

He has developed two successful businesses from scratch, and in the process, he has inspired young people to start their own businesses. He was an integral part of the Quora Mumbai Meetups and helped it become a great success in a short period of time. Later, he began organizing meetups to raise awareness about blockchain, cryptocurrencies, and their applications. He also shared his knowledge of ICOs, highlighted reputable ICOs, and established a small cryptocurrency community on WhatsApp groups.

He chose to go on a Blockchain Tour in India in 2019 and met some fascinating people. Throughout his journey, he has been able to build an extensive and robust network that has aided Secvolt’s growth. Because of his expertise and understanding of the Crypto Industry, he has been featured on several news channels and has advised the youth on the subject.

He is in charge of the company’s marketing operations and is responsible for developing its marketing strategy and vision. He oversees a group of passionate marketing professionals and plans promotional strategies with the goal of making  Secvolt a global brand. 

He is a perfect blend of a practical attitude and innovative business acumen. He believes in the ability of individuals to perform exceptionally well when given an environment to experiment and explore their passions; a culture that he has built at Secvolt.

Divakar Choudhary

Divakar Choudhary is the founder and CEO of Secvolt who has been trading for more than six years now. He started the business in 2018 with the conviction that if anybody could dominate the market, it was him. He poured all of himself into the business and turned Secvolt into a market-beating machine.

Divakar developed the fundamental quant models that perform risk management and capture alpha using his skills from the previous organization and his time spent in the market. In order to make the system effective, he backtested risk mitigation algorithms and worked on them for more than 4 years to produce results.

Early Years

He began his crypto journey in 2013 after getting his first gaming Laptop and melded in with the Blockchain community like sunbeams on the ocean. He created many YouTube channels at the age of 15 and businesses by the time he was 17. Technology has always piqued Divakar’s interest. He endeavored and succeeded at freelancing in his effort to achieve financial independence. However, he soon realized that freelancing would always keep him in the rat race, and the only way out would be to build a machine yielding generational wealth.

Soon, he started trading using his own capital but suffered a loss in the market. He says, “95% of people lose money & the rest 5% make money from the loss of those 95%.” He then began working on an effective technique to be included in this 5% after losing part of his own assets during the early stages of trading. He began evaluating quant strategies using statistical models.

With his methodology, he once produced a 20% ROI in a single month. With the zeal of creating something exceptional, he borrowed money from friends and family and generated decent returns for them using primitive quant models. Month after month, the system’s efficiency and the competence of the man behind it allowed for excellent market returns.

In the beginning, Divakar worked on his laptop for over 18 hours. It took every ounce of his energy as he executed about 530+ deals daily for 4 years to create this company from the ground up. In 2021, he increased his volume by 827%, trading a total of $52 million and hitting a single account.

In his words-

“What does becoming “THAT” GUY mean to you? Who did you need when you were young? Be that person!”

He is a perfect example of someone who followed his passion and made a fortune from it! He dreamt of creating generational wealth as a youngster, envisioned it as an adult, and is now making it a reality with Secvolt!