EDITOR'S COMMENT
• The concerning news over the weekend of Silicon Valley Bank [SVB] and its UK subsidiary's [now bought by HSBC] collapse has sent shockwaves across the tech world, and particularly in the short-term rental sector where a large number of startups have had accounts with or been exposed to the impact of the bank's mismanagement.
Specialising in lending to tech companies and startups, SVB was closed on Friday by the California Department of Financial Protection and Innovation and is set to enter administration after loaning money at low interest rates to startups and failing to pay its obligations. Both the Biden administration in the US and the UK Government have since reassured SVB customers that their deposits are secure and their resolutions will not put the taxpayer at risk, with HSBC agreeing a deal to buy SVB's UK subsidiary for £1 this morning.
The turmoil is understandably unnerving for the bank's clients, including investors such as Sequoia and Andreessen Horowitz, as well as other venture capital firms and startups with SVB accounts. While the swift action by governments will have gone a long way to alleviating some of the potential immediate repercussions, the full impact of the bank's collapse may only become clearer this week.
After a quiet period for investment rounds in the industry, Miami-based property management company Sextant Stays has raised $14m in Series A funding from alternative investment firm VIGO Capital and rebranded as Roami. At the time, it was anticipated to kickstart a frantic surge of investment across the space but the knock-on effect of the SVB collapse may yet have some bearing on that. Despite this, it is hugely encouraging to see a company receive substantial backing when it is promising to "shape" the future of urban travel and provide purposefully designed spaces for groups, much like Vrbo has tried to do as an OTA.
• There are now just two days left to enter the 2023 Shortyz Awards before our entries deadline closes on Wednesday 15 March at 23:59 GMT. Don't miss out on the opportunity to be in with a chance of winning a Shortyz award alongside the industry's greatest leaders, innovators and disruptors when the winners are announced at the awards ceremony on Wednesday 26 April at the ArcelorMittal Orbit in London. Find the key information below:
- Check out the latest promo video touring our Orbit venue here
- Category information can be found here
- Watch this short video for our top tips on how to submit a successful Shortyz entry
- Enter via our dedicated awards platform
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