Not sure why I’m bothering, but -
Silicon Valley Bank (SVB) is a bank. We’re not talking about the term as used to refer generally to tech-based businesses based in the geographical area.
When a bank fails, they don’t have enough cash to meet their obligations. So every person and business who has money deposited or invested with them may not be able to get it back. If you remember when Northern Rock went under, people were queuing outside branches to try to withdraw their savings. No bank can survive a run like that.
If you or I can’t get our money out of the bank, we might not be able to afford to buy food, or pay our rent. It’s the same with a company. But if they can’t pay rent on their premises, or pay their staff their salaries (because the money they had in the bank is unavailable), they can’t continue to operate. They will be wound up, either on their own decision, or by one of their creditors, like their landlord, or more commonly the banks they have themselves borrowed from.
Even if bank is ultimately bailed out, in the short-term the failure will leave havoc in its wake as their customers need their money now, and if they can’t get it , their existing financial commitments can easily tip them into insolvency - they don’t have time to wait for a bail out.
Against that back drop, SVB was known as the go-to Bank for start-ups, like Better Up and others that employ the Sussexes. The major funder of Archewell was an investor through a Silicon Valley Community Fund, so likely a player in that sector too. So if that sector is badly hit by this, so will the Sussexes’ interests. (Along with loads of others too, of course - bank failures cause huge commercial damage).