The Ireland Strategic Investment Fund (ISIF) has around $100m invested in 5 investment funds that are managed by SVB Capital, a subsidiary of the Silicon Valley Bank (SVB) Financial Group.
Startups have been advising their founders to pull out their money from the troubled bank as a precautionary measure after efforts to raise money failed.
The Ireland Strategic Investment Fund said it had structured its $100m of investments in a manner that legally ring-fences them from the rest of the SVB Financial Group.
"This means ISIF does not expect any impact on these investments arising from SVB Financial Group's announcement that it will issue additional shares in the group," a spokesperson for ISIF said.
"The distributions received by ISIF from these investments since 2012 exceed the amount currently invested," the spokesperson added.
ISIF said it has no role in providing loans issued by Silicon Valley Bank to Irish technology businesses.
In 2019, Silicon Valley Bank announced plans to increase its lending to Irish companies to $500m by 2024 as part of a collaboration with the ISIF.
SVB's lending to Irish technology and life science companies reached $226m by the end of 2018 and the bank then said it would lend an additional $300m to Irish firms.
As part of the collaboration, the Ireland Strategic Investment Fund helped identify potential lending clients to SVB and also invested in funds managed by SVB Capital.
At the time of its 2019 Irish lending announcement, the bank said one of its Vice Presidents would relocate to Ireland from the SVB London office to further strengthen the bank's Irish team.
