Over 200 UK companies at 'serious risk' from Silicon Valley Bank collapse

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At least 200 UK tech companies are at 'serious risk' due to the collapse of the UK branch of Silicon Valley Bank.

Rishi Sunak and the Chancellor held emergency talks with Bank of England Governor Andrew Bailey over the weekend to find a cash lifeline for affected businesses as the bank falls into bankruptcy.

Meanwhile, a number of potential buyers are surrounding the failing lender.

Banking giants HSBC and JP Morgan were among several parties considering buying the bank's UK business, a reported Sky News. Both declined to comment.

Oaknorth Bank, a commercial lender founded by former Tory donor Rishi Khosla, was also in takeover talks.

The Bank of London and Abu The state-backed investment vehicle of Dhabi, ADQ, according to Sky.

Discussions continued into the evening as officials scrambled to find a buyer ahead of the insolvency deadline.

A survey of 31 venture capital funds, which hold thousands of investments in UK science and technology companies, found that 34% of their portfolio companies - or 336 - have bank accounts.

More than 200 of them now face short- or long-term cash flow risk, according to data from BVCA - the industry body representing venture capitalists.

Around £2.5 billion of capital from these companies is blocked the lender.

Mr. Hunt said the government was "working at pace" to limit the damage and would come up with a plan to meet the "cash flow" needs of nk's ba customers in the UK.

"The Bank of England has made it clear that there is no systemic risk to our financial system," he told Sky News' Sophy Ridge on Sunday. . "But there is a serious risk to our technology and life sciences sectors."

Mr. Hunt added: "We are working at a brisk pace on a solution which we will deliver very soon to ensure people are able to meet their cash flow needs, pay their staff."

The Chancellor Labor ghost Rachel Reeves has urged Mr Hunt to offer more than 'warm words' to businesses - demanding the Chancellor come up with a plan by the time markets open on Monday.

She told Sky New: "When the markets open tomorrow morning it will be unclear to many businesses in the UK how they can pay their staff salaries...