VRMA Administrator
The collapse of Silicon Valley Bank (SVB) could have far-reaching implications for the companies that deposited their money with the bank or took a loan from it, including start-ups in the short-term rental sector. On 10 March, Sonder, for example, released a statement saying that, as of March 9, it had approximately $2 million in an operating cash account and approximately $20 million in deposit accounts with SVB. The company also held a $60 million line of credit facility with SVB. Munich-based holiday rental booking portal Holidu closed a $98 million Series E funding round in October to expand in Germany and across Europe, which included a venture debt component of $24.5+ million in funding from Silicon Valley Bank and Claret Capital. Edinburgh-based holiday rental marketing platform TravelNest, meanwhile, secured £1.8 million from Silicon Valley Bank and Scottish Enterprise in December 2020. RedAwning CEO Tim Choate said that while his company did not have any accounts at Silicon Valley Bank, he “recognized the importance of this institution to the tech ecosystem and the significant role it has played in supporting startups and other companies over the years, including my own first startup company in the 90s."
ShortTermRentalz (03/13/23) Paul Stevens
