Liquidity Group to aid SBV-affected start-ups with $3B

Renowned asset management, and tech lender Liquidity Group, is set to offer about $3 billion in emergency loans to start-up clients hit by the collapse of Silicon Valley Bank. According to reports, the Tech Lender has about $1.2 billion in cash which will be available in the coming weeks. 

Speaking concerning the decision, the CEO and Co-founder of Liquidity Group Ron Daniel, said the Group is in several talks with its funding partners, including Mitsubishi UFJ Financial Group Inc. of Japan and Apollo Global Management Inc., to offer an additional $2 billion in loans.

“By helping the companies to survive now, I’m hoping some of them will succeed and come back to us in the future,” Daniel said. “We’re nurturing our future clients.”

A typical loan would involve; from $1 Million to $10 million, or as much as 30% of the funds held up at SVB. Daniel stated that the priority is to assist companies in securing their payroll expenses.

The sudden downfall of the tech-focused bank SVB has left a bitter taste in the mouth of the blockchain and tech industry, as tech founders around California Bay and in the UK are expressing worries over their accessing their funds. US regulators overseeing the emergency dissolution of SVB Financial Group are rushing to sell assets and make a portion of clients’ uninsured deposits available as soon as Monday.

Launched in 2018, Liquidity Group reached unicorn status after receiving a fresh investment of $40 million from MUFG in February at a valuation of $1.4 billion, according to a press statement. 

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