2:49:48 PM PDT - Friday, March 24th, 2023

Deel makes over $120M of its own cash available to support customers affected by SVB crisis  

By Editor - Sun Mar 12, 4:59 pm

Global payroll provider Deel plans to provide $120 million of its own cash off its balance sheet to support startups’ payroll operations in the wake of Silicon Valley Bank shutting down. It has teamed up with Andreessen Horowitz (a16z) and Y Combinator – both of which are investors in Deel – to offer the support to customers. The Federal Reserve just announced that Silicon Valley Bank depositors, both insured and uninsured, will be fully protected – which led to collective relief throughout the tech ecosystem. Depositors were made whole as TechCrunch was interviewing Deel co-founder and CEO Alex Bouaziz , whose first reaction to the news was that: “We’ll see what happens, you can never be fully certain. But in the meantime, we’re ready with our customers, and customers right now and whatever we can do to help we’ll be there.” He later added: “It’s amazing that all depositors will be made whole. Until tomorrow morning when all the funds will be available, founders need to stay cautious and stay alert to ensure all employees get paid.” Deel, notably, is not banked with SVB: because it operates over 100 countries, it has over 450 bank accounts and has an in-house treasury management. Deel paid a penalty, Bouaziz said, to withdraw the cash from its accounts but is hoping that penalty will be waived. The goal of Deel’s $120 million lifeline is to help businesses run payroll for the next two cycles “with minimal interruptions.” Companies that need assistance can fill out a request form and apply through Deel , which says it will help with both employee and contractor payroll for current customers, as well as some new customers.

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Deel makes over $120M of its own cash available to support customers affected by SVB crisis

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