Deals
SVB, Stripe Expose Shockwaves of a Long-Shuttered US IPO Market
- Vanishing new issues slowed deposits, loan repayments at SVB
- Bank revenues, economic data among other affected areas
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Silicon Valley Bank’s collapse is just the latest example of how a historic slowdown in IPOs is producing a minefield of unexpected consequences.
The shuttered market for US initial public offerings — and the resultant lack of proceeds for cash-strapped firms — has created myriad complications for Corporate America. From contributing to the collapse of a bank to sparking compensation issues at startups like Stripe Inc., the least predictable consequences of the past year’s IPO slowdown are proving to be the most damaging.