CompanyMarch 10, 2023

mParticle operations are not impacted by the SVB closure

Thanks to redundancies and diversification in our operating accounts, our customers will experience no disruption of service as a result of the Silicon Valley Bank (SVB) closure.

mparticle

What happened?

On Thursday afternoon, it was reported that Silicon Valley Bank (SVB) had launched a share sale to shore up its balance sheet and by Friday morning it was announced that The California Department of Financial Protection closed Silicon Valley Bank and transferred all insured deposits to the FDIC. mParticle uses SVB as one of our bank accounts and so—as you’d expect—we began receiving inquiries from our customers.

Why this does not impact mParticle's operations

As the center of our customers’ Customer Data Infrastructure, we spend a lot of time thinking about security, reliability, privacy, and continuity. Whether it’s high throughput for real-time data ingestion, redundant availability zones, or segregated pods to protect customer data — we know that an interruption to our business can quickly turn into an unacceptable disruption to our customers. 

This approach extends to the way we manage and protect the funds important to the continuity of our own business operations. We do this in several ways:

  1. Diversification
  2. Automatic sweep of excess operating funds
  3. Redundant operating accounts

We diversify our cash across multiple financial institutions to reduce the risk of a single point of failure or other black swan event.  The majority of our cash reserves are held at non-SVB institutions. For the cash accessible through SVB, we use sweep accounts to maintain an operating balance under the FDIC insurance limit. 

We maintain redundant operating accounts in case of an issue with our primary operating account. We began the process of “failing over” to operating accounts held at another banking partner and expect no disruption to our customer or internal operations.

What’s Next?

We’re still far from understanding the overall impact to the startup ecosystem from the closure of SVB. There’s still much to learn about the cause, the eventual resolution, and how we incorporate those learnings to avoid future such events. At minimum, it’s another reminder that there’s value in deliberately thinking about and planning for risks to business continuity—whatever form they may take.

Latest from mParticle

M&S Customer Story

How Marks & Spencer drove revenue growth with mParticle's real-time segmentation and personalization

February 26, 2024
TVBS partners with mParticle

Company

TVBS partners with mParticle to build a 360-degree customer view

January 31, 2024

Videos

mParticle’s real-time data insights and segmentation fuel Joe & The Juice loyalty program growth

December 18, 2023

Company

mParticle Joins Elite Ranks with AWS Advertising and Marketing Technology Competency

November 30, 2023

Try out mParticle

See how leading multi-channel consumer brands solve E2E customer data challenges with a real-time customer data platform.

Explore demoSign upContact us

Startups can now receive up to one year of complimentary access to mParticle. Receive access