O'Leary Ventures chairman and 'Shark Tank' star Kevin O'Leary explains why the U.S. doesn't need regional banks and discusses getting better returns f

Silicon Valley Bank collapse: Shopify wires money to merchants with payroll problems

submited by

Style Pass

2023-03-18 13:30:06

O'Leary Ventures chairman and 'Shark Tank' star Kevin O'Leary explains why the U.S. doesn't need regional banks and discusses getting better returns from women-owned businesses.

Startup Kinder Beauty, which put the entirety of its funds in Silicon Valley Bank (SVB), was thrown a lifeline this week when Shopify wired the company the money needed to make payroll.

The online business geared toward selling cruelty-free and vegan beauty boxes does all of its banking with SVB, which collapsed last week after depositors and investors rushed to withdraw their cash over concerns about the bank's health before the FDIC moved in and shut it down.

"It’s hard being a small business. Every day we face a new challenge," Kinder Beauty CEO Andrew Bernstein wrote Thursday in a LinkedIn post. "This particular challenge, dealing with the fallout of our bank defaulting, was particularly rough."

The collapse of SVB marked the second-largest bank failure in U.S. history and the largest since 2008 when Washington Mutual collapsed.