Enterprise Weekly #416: SVB Shuts Down, The Banking Crisis, and More
Yesterday, panic first swept across the startup and VC ecosystem as shares of tech-startup bank Silicon Valley Bank (SVB) plunged by more than 60% after the company announced plans to raise more than $2B in capital to help offset losses on bond sales. Read more analysis on the backstory here.
Earlier this morning, news broke that fundraising efforts failed and that SVB was seeking a potential buyer.
Then, just as we were about to go to print, the shocking news hit that SVB has been shut down by the Federal Deposit Insurance Corporation (FDIC) in order to protect insured deposits.
To put this all into context, “SVB touches every corner of the private markets” and is considered a top 20 U.S. bank with relationships with more than 50% of U.S. venture-backed companies. Given their dominance of the market, the only question at this point is: what happens next? As all eyes will be glued to this story next week and there is certainly a dark cloud tech today as this banking crisis continues to unfold.
We are continuing to monitor the situation - Godspeed to all impacted.
📚 Read more news:
Battery Ventures: March 2023 Battery Ventures State of Cloud Software Spending Report
Crunchbase: Series B Funding Has Also Fallen Sharply
Fortune: White Founders Receive Some $35M Funding Black and Brown Founders
NYTimes: Is the Entire Economy Gentrifying?
Role: Senior Backend Engineer
Technology: Data Extraction & Document Automation
Funding: $26M from Intel Capital, Canaan Partners and Work-Bench
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