SVB, tech firms and the folly of putting all eggs in one basket

Following the euphoria of recent times, it is good to revisit the question: What is a tech company, anyway? 

Once the darling of the global economy, the tech sector is now struggling under the weight of the same factors that sunk Silicon Valley Bank. PHOTO: REUTERS
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Silicon Valley Bank (SVB) failed last week largely because it had put all its eggs into one basket – the tech sector.

Once the darling of the global economy, the tech sector is now struggling under the weight of the same factors that sunk the bank – rising interest rates and the lack of diversification, which in SVB’s case meant a concentrated customer base.

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