Space startups get their SVB assets back when Feds move in

Because of the decision of the federal government to guarantee all deposits at the failed Silcon Valley Bank (SVB), even those above the $250K limit set by the FDIC law, several space rocket startups are no longer threatened with failure, for now.

Astra for example is now seeking to move as quickly as it can its assets, equaling about 15% of the company, to other financial institutions.

I would expect this incident will cause every company to make sure their assets are distributed more widely, as a hedge against the failure of one bank.

Some space startups threatened by Silicon Valley Bank failure

Link here. The companies mentioned in the article are Astra, BlackSky, Planet, Redwire, Rocket Lab, and Space Perspective.

Rocket Lab has about 8% of its cash assets now trapped by the closure. All the companies had loans from Silicon Valley Bank, some of which were paid off prior to the crash. This quote suggests the situation is critical for some space startups:

“It’s a very serious situation,” said a space sector entrepreneur who asked not to be identified. “Our balance is suddenly only $450. There has been no communication from SVB even after the event became known. Our primary SVB liaison, who has been very attentive in the past, is unreachable by any means. It’s appalling.”