, worried that SVB’s collapse will stall America’s innovation engine. Already, questions are emerging about whether lending to small tech companies is a viable business model going forward.
, the elimination of SVB is a major blow amid the already concerning climate for tech — and will set the industry back even further. By the time of its collapse, the firm served more than half of the venture-backed companies in the United States, according to its website. It also required many customers to bank with it exclusively as a condition of service, leading to even more concentration.
That guarantee has stemmed the immediate panic that swept through the tech world over the weekend. On Monday, most companies were able to access their money, and many began taking it out to put in other banks. But the long-term impact of SVB’s failure is just beginning to set in. “It’s frustrating because you get one warning sign … it costs nothing to take your money somewhere else and potentially you’re risking money by leaving it in,” he said.
Last week, Watson first started hearing that something was wrong Wednesday night. By Thursday, it was all over social media.
Subprime loans are subprime loans regardless if they are made to ESG/DEI friendly start ups.
Capitalism at its finest, unbridled and unregulated it comes crashing down. Got to protect the upper management and stockholders first and foremost. Here IS the fatal flaw.
Woke bank😂😂😂😂
Teachers pension funds invest in SVB and loads of junk. I'm glad more school budget cuts are coming. It's for the kids.
seriously, ? now Silicon_Valley_Bank siliconvallybank is a victim?
Well... Maybe banks shouldn't gamble with other people's money 🤷♂️... Maybe we should have regulations on them 🤷♂️
LAUGH OUT LOUUUUUD!
Shocking… 🫥
Who cares. The sun still rises, the air is still fresh. Get outside.
🧐🧐🧐