With the collapses and or seizures of Silicon Valley Bank, Silvergate Capital and Signature Bank, come concerns for the crypto sector, and also for commercial real estate generally, according to reports. 

“If banks are being told they can’t bank the sector, then how does the (crypto) sector create diversification and banking?” said Dante Disparte, chief strategy officer at stablecoin issuer Circle. “The risk, unfortunately, was too few banks banking too big a sector,” according to an article on Politico.

“It’s fair to ask whether what’s happening now in commercial real estate could be setting the banking industry up for a repeat of the savings and loan crisis of the late 1980s and early 1990s, when a mass souring of property loans and investments led to a recession. It’s too soon to answer…” writes Robert Burgess in an analysis for Bloomberg. 

As many employees were returning to work following the pandemic, the prop tech sector was seen as a source of sorely needed innovation and reinvention. And some expect that to continue. 

Rasheq Zarif, Co-Founder and COO of ReWyre, tells GlobeSt.com that SVB played an important role in supporting and catalyzing American innovation. “Many startups would not be where they are today without the support it provided,” Zarif said.

“Those who think this spells disaster for the proptech sector are mistaken – SVB is not the only ingredient to continued industry success. Proptech will push on, helped by a clear and growing need for more sustainability, as well as the digitization of outmoded processes and systems across the real estate lifecycle,” according to GlobeSt.