Silicon Valley Banks’ (SVB) rapid implosion late last week sent shockwaves across the technology sector as one of the market’s key financial vectors vanished from the scene. The federal government did belatedly step in to secure bank funds, but the broader implications could impact future startup funding plans.

SVB had been a staple in the technology sector, holding money for established vendors, startups, and venture capital firms. Some of those firms released statements following the news attempting to provide clarity on any potential impact.

Zscaler, for instance, released a statement that while SVB had been one of its banking partners, its current SVB deposits represented less than 0.1% of its $1.9 billion in total cash and deposits.

“In fact, the vast majority of our $1.9 billion is not held in bank deposits at all, but rather in extremely safe and liquid investments like short-term U.S. Treasuries or government money market funds,” CEO Jay Chaudhry wrote.

The news also spread uncertainty over similar mid-sized banks with ties to the tech sector.

“In addition to concerns over the prevailing macroeconomic conditions, the ripple effect of the SVB Financial Group meltdown that created the assumption that other similar banks and lenders would also [be] in financial trouble of undercapitalization resulted in a runaway selling,” GlobalData Analyst Murthy Grandhi noted in a blog post.

Banks in similar positions put out statements over the weekend to reassure investors of their solid backing.

This included First Republic, PacWest Bancorp, and Western Alliance Bank.

VCs have also scrambled to cover concerns.

Y Combinator this week announced plans to cut 17 jobs from its late stage investing team, which CEO Garry Tan told TechCrunch was not related to the SVB collapse.

Prior to the government stepping in, Tan noted on Twitter that “thousands of US startups” banked through SVB, and “this is an *extinction level event* for startups and will set startups and innovation back by 10 years or more.”

However, others have noted that the government’s response will drastically limit the damage from SVB’s collapse.

“The VCs will all emerge unscathed, and the many startups, innovators, and founders out there will not be forced to shut down or miss payroll,” Derek Kerton, principal analyst at Silicon Valley-based The Kerton Group, wrote to SDxCentral in an email. “That’s a great thing for the economy – not that we’re better off than we were last week, but in the sense that it could have been much, much worse. Startup founders choose to take risks and need to sink or swim based on those bets. But the bets should be whether their business succeeds or not, not whether their bank remains solvent or not.”

Kerton added the biggest impact could be that startups have lost a bank that specialized in their specific needs.

“Sure, they can all bank elsewhere, and that’ll be fine,” Derek explained. “For startups, losing SVB is a bit like if you have a unique car, say a Saab, and you’re getting good service from the Saab dealership in your town. Then, the Saab dealer goes bankrupt. Sure, you can find another general mechanic who can work on your car, but you’ve lost the specialist who knew your specific needs, had the parts in stock, and could advise you on your specific needs.”