Major IT Companies That Did Business With SVB
The collapse of Silicon Valley Bank has sent ripples throughout the financial and technology industries. Here are some of the IT vendors that had done business with the bank.
The collapse of Silicon Valley Bank (SVB) has sent ripples throughout the financial and technology industries.
Bloomberg reports that more than 190 companies worldwide might be looking for new lenders after the collapse of SVB.
The 40-year-old Santa Clara, Calif.-based bank collapsed when customers withdrew $42 billion in a single day last week, according to CNN.
IT Vendors That Did Business With SVB
Some of the companies that revealed their ongoing business with the bank include:
In a joint statement Sunday, Secretary of the Treasury Janet Yellen, Federal Reserve Board Chair Jerome Powell and Federal Deposit Insurance Corp. (FDIC) Chairman Martin Gruenberg announced that the government would fully protect all depositors of SVB with no losses borne by taxpayers.
Here’s what you need to know.
Bloomberg reported that SVB was part of a loan this year to RingCentral, a vendor of cloud-based communications and collaboration products.
A spokesperson for Belmont, Calif.-based RingCentral told CRN in a statement that the vendor has “minimal cash deposits at SVB and this is not material for us.”
“Also, while SVB is part of our credit facility syndicate, BofA, JPM and Wells Fargo are the lead arrangers and bookrunners,” the spokesperson said. “The facility also includes Goldman Sachs, Morgan Stanley, Deutsche Bank and Toronto Dominion Bank.”
RingCentral has about 15,000 channel partners worldwide, according to CRN’s Channel Chiefs list.
In October, Versa Networks raised a $120 million round of funding with plans to eventually go public. SVB participated in the round.
CRN has reached out to the Santa Clara, Calif.-based secure access service edge vendor for comment.
Versa Networks offers a partner program for MSPs, resellers, distributors, systems integrators and other partner business types.
Sumo Logic, which provides cloud-based machine data analytics tools, on its website said that 1.5 percent of the “cash, cash equivalents, and marketable securities of approximately $335 million in total as of March 10” is “in cash operating accounts with SVB.”
“The remainder of our cash, cash equivalents and marketable securities are held in operating, custody and investment accounts at other financial institutions,” according to the post from Redwood City, Calif.-based Sumo Logic. “We have no outstanding balance on our line of credit with SVB.”
The vendor has a channel partner program for systems integrators, resellers, MSPs and other partner business types. The vendor has about 120 North American partners and 200 worldwide, according to CRN’s Channel Chiefs list.
CRN has reached out to Sumo Logic for comment. The publicly traded vendor is expected to go private in a $1.7 billion deal with investment firm Francisco Partners. The deal is expected to close in the second quarter of 2023.
Prior to the collapse of SVB Friday, CrowdStrike had a revolving credit line of up to $750 million with SVB since January 2021.
On Friday, CrowdStrike updated a page on its website to disclose that the revolving credit line “remains undrawn and we do not foresee a need to access this facility.” CRN has reached out to CrowdStrike.
Fatima Boolani, co-head for U.S. software equity research at Citi, researched the potential exposure for CrowdStrike in the SVB failure and reportedly determined it “doesn’t seem all that concerning.”
Amid the SVB fallout, networking vendor Juniper Networks filed a document with the U.S. Securities and Exchange Commission to report that it “maintains operating accounts at SVB with a minimal cash balance of less than 1% of the Company’s total cash, cash equivalents and investments.”
The Sunnyvale, Calif.-based vendor had $880.1 million in cash and cash equivalents at the end of 2022, according to a company release.
Juniper has a partner program for resellers, MSPs, solution providers and other partner business types. CRN has reached out for comment.
Lantronix, an Irvine, Calif.-based provider of IoT products and services, filed documents with the U.S. Securities and Exchange Commission revealing that it “had deposits with SVB of approximately $6.7 million, representing approximately 85% of its total outstanding deposits.”
“Based on the March 12 joint statement, the Company believes it will again have access to these funds as of March 13,” according to the vendor.
Even if Lantronix couldn’t recover its SVB deposits, it “had secured verbal commitments from certain of its directors, officers, members of the management team as well as members of its advisory board, to lend funds in the aggregate amount of up to $5 million to the Company to help fund its operations until the Company could regain access to its SVB deposits or other sources of funding,” according to the company.
“In light of the joint announcement made by the Treasury, the Federal Reserve and the FDIC, the foregoing planned action is no longer necessary as the Company will have sufficient cash and net cash flows from its operations to satisfy its current obligations for the foreseeable future,” according to the company.
Arrcus, which offers hyperscale networking software and network infrastructure for multi-cloud, edge and other environments, announced in February the raise of $50 million with participation by SVB.
SVB also provided credit facilities, according to a statement from San Jose, Calif.-based Arrcus.
CRN has reached out to the vendor, which offers the Partner with Arrcus Connected Edge (PACE) partner program for service providers. Arrcus partners include CoreSite, No. 57 on CRN’s 2022 Solution Provider 500.
Digi, which provides IoT connectivity products and services, revealed in a statement that it “has deposits of just over $2 million at SVB.”
“These deposits represent approximately 5 percent of Digi’s cash and cash equivalents balances as of March 10,” according to the statement. “Digi’s deposits at SVB are largely uninsured and Digi does not know to what extent it will be able to recover its cash on deposit at SVB.”
The Hopkins, Minn.-based vendor said that its “remaining cash and cash equivalent balances of over $35 million are held primarily at BMO Harris Bank.” BMO is the administrative and collateral agent under Digi’s Second Amended Credit Agreement, according to the company.
“Digi is confident its existing cash and cash equivalents balance not deposited at SVB as well as cash flow from operations will be sufficient to meet its working capital, capital expenditures, and material cash requirements from known contractual obligations for the next twelve months and beyond,” according to the company.
Digi has a partner program for resellers, distributors and other partner business types.
Monday.com, an Israel-based provider of cloud-based applications and project management software, posted on its website to say that it held deposit accounts at SVB.
However, “as of March 10, 2023, the total balance of these accounts is less than 0.5 percent of the company’s total cash and cash equivalents.”
“Therefore, we do not anticipate any significant impact on our operations, financial condition, or liquidity,” according to the post. The company also assured application developers “that all payments are being processed as usual.”
Ribbon Communications, a Plano, Texas-based provider of optical networking products and services, reported that it “maintained some deposit accounts with SVB” in a regulatory filing.
“The company withdrew funds on deposit with SVB as of Thursday, March 9, 2023,” according to the filing. “However, additional payments (approximately $4 million) from the company’s customers were deposited into the company’s accounts at SVB subsequent to that withdrawal. According to the FDIC, all insured depositors of SVB will have full access to their deposits starting today, March 13, 2023.”
The vendor “does not expect the closing of SVB to have a significant impact on its operations. The company’s cash and cash equivalents are distributed across multiple large financial institutions.”
Ribbon offers a partner program for resellers, distributors and other partner business types.
The vendor has 500 North American channel partners and 1,000 worldwide, with about 40 percent of overall sales coming through the channel, according to CRN’s Channel Chiefs list.
Bloomberg reported that SVB was part of a loan this year to PTC, a vendor of augmented reality, IoT product life-cycle management and other offerings for industrial businesses.
CRN has reached out to Boston-based PTC for comment. The company has a partner program for systems integrators, consultants and other partner business types.
About 30 percent of the company’s sales come through the channel, according to CRN’s Channel Chiefs list. PTC has about 80 North American channel partners and 700 worldwide.
In January, hybrid cloud data management and storage technology vendor Cloudian raised a $60 million round of funding from a group including SVB.
The San Mateo, Calif.-based vendor offers a partner program for resellers, systems integrators, distributors and other partner business types.
CRN has reached out to Cloudian for comment.
Like other companies that used SVB for accepting payments, SentinelOne sent emails to customers asking them to remit payments to a different bank account, according to an email reviewed by CRN.
The email states that the Mountain View, Calif.-based security vendor maintained “a minimal cash balance at SVB,” but “the vast majority of SentinelOne’s over $1B in total cash, cash equivalents and investments is held at multiple banking partners.”
On SentinelOne’s latest quarterly earnings call, held Tuesday, Chief Financial Officer Dave Bernhardt said “our exposure to Silicon Valley Bank’s insolvency was immaterial, and we have no financial risks associated with them.”
CRN has reached out to SentinelOne for comment.