SVB, Stripe Expose Shockwaves of a Long-Shuttered US IPO Market

Silicon Valley Bank’s collapse is just the latest example of how a historic slowdown in IPOs is producing a minefield of unexpected consequences.

The shuttered market for US initial public offerings — and the resultant lack of proceeds for cash-strapped firms — has created myriad complications for Corporate America. From contributing to the collapse of a bank to sparking compensation issues at startups like Stripe Inc., the least predictable consequences of the past year’s IPO slowdown are proving to be the most damaging.

“When you’re not able to exit these companies, the whole thing falls apart,” said Robert ...