The collapse of Silicon Valley Bank on March 10 caused shockwaves that have rippled through startups, investors and the general public, sending global markets into chaos over the past week.
SVB – described on its website as “financial partner
of the innovation economy” – ended 2022 with $212 billion dollars in assets and $74 billion in loans, with about 20% of that venture debt. The company said 50% of venture-backed tech and life science companies in the United States were its customers.
the FDIC continues to look for a buyer for SVB’s assets, founders and investors are considering the long-term implications of its collapse, as well as instability across other financial institutions and markets.
To provide perspective, PhocusWire
convened its second LinkedIn Audio event Thursday, “Let’s Hear It! What the SVB collapse could mean for travel startups.”
Speakers for the event were Chris Hemmeter, managing director of Thayer Ventures; Cara Whitehill, founder and managing
partner of Unlock Advisors; Jack Dow, founder and CEO of Grapevine; and Ariel Cohen, CEO of Navan (formerly TripActions.)
During the 30-minute discussion, speakers discussed the importance of good governance for startups, how SVB’s failure
is an example of a broader shift in the “risk curve” for investments and their outlook longer term for the financial system and startups in general.
“I think the financial system is more resilient today than it has been in a very, very long
time,” Hemmeter says.
“What we are going through now is a bit of a moment of hysteria frankly.”
Listen to the entire episode of “Let’s Hear It” below.
– main takeaway in 5 words or less
– sign of systemic issues?
– implications for future regulations
– no more “free money”?
07:00 – importance of good governance in startups
09:00 – value of “good investors”
12:00 – money is now expensive
17:00 – Phocuswright startup funding data Q1 2023 compared to prior years
18:00 – challenges for early stage startups in travel
20:00 – not every business needs venture funding
22:00 – social media effect?
– question from Danilo Tomanovic
– future outlook