• Tech News
    • Games
    • Pc & Laptop
    • Mobile Tech
    • Ar & Vr
    • Security
  • Startup
    • Fintech
  • Reviews
  • How To
What's Hot

Pinter 3 review

March 30, 2023

Nine Ways Entrepreneurs Can Use Cloud Technology To Scale Their Businesses

March 30, 2023

Nokia G60 5G review

March 30, 2023
Facebook Twitter Instagram
  • Contact
  • Privacy Policy
  • Terms & Conditions
Facebook Twitter Instagram Pinterest VKontakte
Behind The ScreenBehind The Screen
  • Tech News
    1. Games
    2. Pc & Laptop
    3. Mobile Tech
    4. Ar & Vr
    5. Security
    6. View All

    Bring Elden Ring to the table with the upcoming board game adaptation

    September 19, 2022

    ONI: Road to be the Mightiest Oni reveals its opening movie

    September 19, 2022

    GTA 6 images and footage allegedly leak

    September 19, 2022

    Wild west adventure Card Cowboy turns cards into weird and silly stories

    September 18, 2022

    7 Reasons Why You Should Study PHP Programming Language

    October 19, 2022

    Logitech MX Master 3S and MX Keys Combo for Business Gen 2 Review

    October 9, 2022

    Lenovo ThinkPad X1 Carbon Gen10 Review

    September 18, 2022

    Lenovo IdeaPad 5i Chromebook, 16-inch+120Hz

    September 3, 2022

    YouTube adds very convenient iPhone homescreen widgets

    October 15, 2022

    Google finishes iOS 16 Lock Screen widgets rollout w/ Maps

    October 14, 2022

    Is Apple actually turning iMessage into AIM or is this sketchy redesign rumor for laughs?

    October 14, 2022

    Samsung’s One UI 5 update is largely about personalization

    October 14, 2022

    MeetKai launches AI-powered metaverse, starting with a billboard in Times Square

    August 10, 2022

    The DeanBeat: RP1 simulates putting 4,000 people together in a single metaverse plaza

    August 10, 2022

    Improving the customer experience with virtual and augmented reality

    August 10, 2022

    Why the metaverse won’t fall to Clubhouse’s fate

    August 10, 2022

    How Apple privacy changes have forced social media marketing to evolve

    October 16, 2022

    Microsoft Patch Tuesday October Fixed 85 Vulnerabilities – Latest Hacking News

    October 16, 2022

    Decentralization and KYC compliance: Critical concepts in sovereign policy

    October 15, 2022

    What Thoma Bravo’s latest acquisition reveals about identity management

    October 14, 2022

    What is a Service Robot? The vision of an intelligent service application is possible.

    November 7, 2022

    Tom Brady just chucked another Microsoft Surface tablet

    September 18, 2022

    The best AIO coolers for your PC in 2022

    September 18, 2022

    YC’s Michael Seibel clarifies some misconceptions about the accelerator • DailyTech

    September 18, 2022
  • Startup
    • Fintech
  • Reviews
  • How To
Behind The ScreenBehind The Screen
Home»Startup»Analysts caution that Silicon Valley Bank collapse could further cool declining VC market – Startup
Startup

Analysts caution that Silicon Valley Bank collapse could further cool declining VC market – Startup

March 19, 2023No Comments3 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Regulators close Silicon Valley Bank in stunning downfall for financial mainstay of tech industry – GeekWire
Share
Facebook Twitter LinkedIn Pinterest Email
Analysts say the SVB collapse will further pressure the declining VC market, but other investors say it’s business as usual. (Startup Photo / Nate Bek)

Some venture capitalists say it’s business as usual for their investment plans in the aftermath of Silicon Valley Bank’s downfall.

But analysts with PitchBook wrote in a report this week that SVB’s collapse “could not have come at a worse time for the VC market.”

The chaos surrounding Silicon Valley Bank and larger upheaval in the banking sector coincides with an already sluggish venture capital investing landscape, following record funding levels in 2021.

Higher interest rates and the broader tech downturn were already slowing investment activity. Pacific Northwest startup deal value was down nearly 80% in the first two months of this year, according to Startup’s recent fundings list.

Nationally, venture-backed companies raised $29.3 billion across 1,245 deals through February, according to preliminary VC data provided by Ernst & Young. That’s down from 2,383 deals and nearly $56 billion during the same two-month period last year.

“There would never have been a good time for the bank to fall, but this is another major pressure on the market that will accelerate the pricing correction in VC,” PitchBook senior analyst Kyle Stanford wrote in an email newsletter Saturday.

Andy Liu, partner at Unlock Venture Partners, predicts that new deals will slow in the near and mid-term, while the bar for entrepreneurs will be raised.

“The impact psychologically for investors will be to invest in startups likely to have the least amount of future financing risk, which includes more syndicated deals resulting in deals that take much longer to put together,” he said.

Unprofitable startups will have a harder time raising venture debt from banks, Liu said. SVB was a top provider of venture debt, a specialized loan typically repaid using future venture capital, helping startups fund their growth and bridge the gap between investment rounds.

See also  SPAC deal folds for Seattle biotech startup, months after IPO withdrawal – Startup

Other investors say it’s business as usual.

“This was a moment in time that froze funds,” said Hope Cochran, managing director at Madrona Venture Group. “It certainly doesn’t change our strategic direction for what we’re here to do. There is no reason why we would slow down investing now.”

Tola Capital Managing Director Sheila Gulati said there will be long-term impacts on startups, such as increased attention on cash management, and changes to venture debt and revenue-based financing.

But she does not expect a “funding freeze,” particularly with the continued rush of new innovation around artificial intelligence technology such as the launch of GPT-4 this week.

“This AI tailwind will far outweigh the banking crisis headwind from a venture funding perspective, and we couldn’t be more excited to back great companies at this time,” she said.

Speaking on the Startup Podcast this week, Kirby Winfield, founding general partner of Seattle VC firm Ascend, agreed there is not “some sort of deep freeze.”

Winfield said venture capitalists have a fiduciary duty to their limited partners to discover and invest in the “best founders in the market.” He committed to a deal last week, in the middle of the SVB fiasco.

“There’s no stopping deployment,” Winfield said.

Legendary venture capitalist Bill Gurley, who backed Seattle tech giants Zillow and Rover, told Bloomberg he expects prolonged pain in the tech sector.

But the turmoil may actually create opportunities for investment.

“A lot of people aren’t investing,” said Jason Stoffer, partner at Maveron, “which always makes it a good time to invest.”

See also  Spotnana, backed by Madrona, lands $75M – Startup



Source link

analysts bank caution collapse Cool declining Market Silicon Startup Valley
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Nine Ways Entrepreneurs Can Use Cloud Technology To Scale Their Businesses

March 30, 2023

Seattle startup uses GPT to create meeting highlight reels – Startup

March 30, 2023

In Sudden Alarm, Tech Doyens Call for a Pause on ChatGPT

March 29, 2023

3 Concepts From Mechanics That Are Useful For Startup Founders

March 29, 2023
Add A Comment

Leave A Reply Cancel Reply

Editors Picks

How digital twins are transforming network infrastructure: Future state (part 2)

August 8, 2022

Anonymous Code is heading West in 2023

July 3, 2022

Ubisoft Cancels ‘Splinter Cell VR’, ‘Ghost Recon Frontline’ & 2 Unannounced Titles – Highway to VR

July 22, 2022

The Hottest Startups in Dublin

October 8, 2022

Subscribe to Updates

Get the latest news and Updates from Behind The Scene about Tech, Startup and more.

Top Post

Pinter 3 review

Nine Ways Entrepreneurs Can Use Cloud Technology To Scale Their Businesses

Nokia G60 5G review

Behind The Screen
Facebook Twitter Instagram Pinterest Vimeo YouTube
  • Contact
  • Privacy Policy
  • Terms & Conditions
© 2023 behindthescreen.uk - All rights reserved.

Type above and press Enter to search. Press Esc to cancel.