What the loss of Silicon Valley Bank means for Silicon Valley
Regulators prevented a cash crunch—but venture capital has not emerged unscathed
Silicon valley is a tough place to be a banker. Startup bosses call with references but no revenue. Loans can seldom be secured against physical assets. Many clients fail. Silicon Valley Bank (svb) netted nearly half of America’s venture-backed technology and life-science firms as clients by providing what a venture capitalist calls the “the white-glove, red-carpet treatment”. This was not just about the lunches and events it put on for clients: svb established itself as a reliable cog in Silicon Valley’s dream machine. In the Financial Times, Michael Moritz of Sequoia Capital, a grand venture-capital outfit, lamented the loss as akin to a “death in the family”.
This article appeared in the Finance & economics section of the print edition under the headline “The stages of grief”
Finance & economics March 18th 2023
- How deep is the rot in America’s banking industry?
- For markets Silicon Valley Bank’s demise signals a painful new phase
- The search for Silicon Valley Bank-style portfolios
- What the loss of Silicon Valley Bank means for Silicon Valley
- Credit Suisse faces share-price turbulence, as fear sweeps the market
- Is the global investment boom turning to bust?
- The Fed smothers capitalism in an attempt to save it
From the March 18th 2023 edition
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