Silicon Valley Bank’s collapse hit the ecommerce world

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:

Roblox

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.

Etsy

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.