SVB Collapse May Set Healthcare Innovation Back More Than a Decade

The FDIC take-over of the Silicon Valley Bank this weekend will hit the healthcare technology market hard, affecting not only digital health startups but health systems looking to plan their innovation strategies. The collapse of the Silicon Valley Bank last week sent a shudder through the healthcare industry, and could have an impact on the digital health ecosystem for some time. SVB, the 16th largest bank in the country, reportedly had almost $80 billion in deposit and investments many from healthcare technology companies and venture capital firms when a run on withdrawals Thursday forced the bank to shut down. Its total assets, according to federal regulators, stood at roughly $209 billion, with some reports saying more than 97% of that was uninsured. That run was caused by an announcement on Wednesday by the bank, which said it needed money to address a $1.8 billion hole caused by the sale of a $21 billion loss-making bond portfolio consisting mainly of US Treasuries.