Cybersecurity industry grapples with Silicon Valley Bank fallout

Major cybersecurity companies and startups appear to have contained their risk from the sudden collapse of Silicon Valley Bank over the weekend.

Driving the news: Several cybersecurity companies, including big names like CrowdStrike, relied on SVB for some of their financial needs before the bank's unexpected failure late last week — leaving leadership teams and investors in limbo until regulators stepped in Sunday night.

• CrowdStrike said in a statement Friday that 90% of the company's funds are "held in large global institutions."
• GroupSense CEO Minder told Axios his company was able to access its SVB funds on Monday and moved them to a larger banking institution.

What they're saying: "If the government hadn't come forward and backstopped like they did, it would have made our life pretty difficult," Minder told Axios.

The big picture: While it's unclear how many cyber companies were SVB customers, some notable names have been linked to the firm, according to BankInfoSecurity.

• Cloud-based data analytics firm Sumo Logic had a credit line open with SVB and borrowed $24.3 million during the fiscal year that ended on Jan. 31, 2021.
• Boston-based Rapid7 was also a longtime customer of the bank: In March 2020, Rapid7 CEO Corey Thomas was quoted in an SVB announcement celebrating the bank's new downtown Boston office.
• Neither company responded to Axios' requests for comment.

Between the lines: Minder is now worried about the long-term impact SVB's collapse will have on available venture capital funding as limited partners potentially pull back on their investments.

• "They're already pulling back for a number of reasons," he said. "This is going to further that."

What's next: Cybersecurity experts warn that scammers are likely to start taking advantage of the confusion over SVB's collapse in phishing and disinformation campaigns.

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