Valens, an Israeli startup that provides high-speed connectivity solutions – chips — for the audio-video and automotive markets, is one of a number of Israeli firms issuing statements about its position with the failed Silicon Valley Bank (SVB), declaring neither it nor any of its subsidiaries hold cash deposits or securities, nor do they have debt with Silicon Valley Bank. SuperCom, an Israeli provider of Electronic Intelligence Solutions, issued a similar statement.
Valens Automotive calls itself a key enabler of the evolution of autonomous driving, providing the ultra-high-speed solution necessary to connect the growing number of in-vehicle sensors, cameras, radars, and lidars. The automotive chipsets are on the road in premium vehicles around the world, and the underlying technology has been selected to become the basis for the new international standard for automotive connectivity. Founded in 2006, Valens is based in Tel Aviv, Israel with offices in the US, Europe and Asia.
Also, Protalix BioTherapeutics, an Israeli biopharmaceutical company focused on the development, production and commercialization of recombinant therapeutic proteins, announced that it does not hold cash deposits or securities at either Silicon Valley Bank or Signature Bank (another failed bank), nor does it have any credit facility or other financial relationship with either institution. The Company said it maintains a majority of its cash and short-term bank deposits in money center banks in the United States with the remainder deposited in a large financial institution in Israel. The Company does not expect the closure of Silicon Valley Bank or Signature Bank to have any impact on its operations and said it intends to monitor the situation and any potential impact it may have on the Company’s partners, suppliers or other relevant parties.
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And InMode Ltd., a global provider of innovative medical technologies traded on the NASDAQ, also announced that that it does not hold cash deposits or securities at Silicon Valley Bank. The company maintains its cash and non-insured deposits at U.S. money center banks and large Israeli financial institutions. As a result, the company stated it does not expect the closure of Silicon Valley Bank to have an impact on its operations. The company said it will monitor for any effect on its suppliers, vendors and other strategic partners.
Silicon Valley Bank (SVB) collapsed in what was described as the largest failure of a US bank since Washington Mutual in 2008. On Friday, the Federal government was forced to take over SVB and this is having repercussions in Israel where hundreds of firms are said to have deposits with the bank.
In the U.S., depositors are insured by the Federal FDIC program for up to $250,000. Federal authorities pledged that all such deposits will be secured and small depositors will get all of their money back, while it is working on how to disperse the bank’s funds to larger depositors. Some companies have hundreds of millions deposited in SVB. But investors who hold stock in the bank will lose a fortune.