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Chinese Tech Startups Struggle as Silicon Valley Bank Collapses

The collapse of Silicon Valley Bank (SVB) is having a significant impact on early-stage Chinese tech startups.

SVB, which was a major lender to startups in China, had a reputation for friendlier account opening requirements and flexibility for startups and companies with variable interest entities.

It was also viewed as an entryway for Chinese tech firms to access the Silicon Valley ecosystem.

The news of SVB’s failure caused panic in China initially, but the situation was mitigated by US regulators.

However, there are concerns about the longer-term fallout and whether Chinese startups will turn to American or Chinese competitors for funding.

The geopolitical situation has led to an increase in VC funding in China, which has helped to offset the impact of SVB’s collapse.

However, Chinese startups are still worried about their fundraising efforts, given the regulatory crackdowns they have faced in recent years.

The collapse of SVB has added another layer of uncertainty to an already challenging environment for Chinese tech startups.





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