When I moved to San Francisco, the quirky rotunda at 532 Market Street was a Sharper Image store full of plasma balls and tourists trying out massage chairs.
The E*Trade branch that took over the space closed a few years ago, but got a new tenant last August: Silicon Valley Bank. Sigh.
Downtown SF hasn’t recovered from the pandemic, but this is a prime location with lots of foot traffic. Hopefully, after Silicon Valley Bridge Bank goes out of business, a profitable company will move in.
But that’s just a street corner. The second largest bank failure in US history will transform the startup ecosystem for years to come.
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More than just a preferred choice for managing payroll and investor funds, Silicon Valley Bank also offered wealth management services, under-market home loans, and helped coordinate private stock sales. It was also a necessary Choice for many customers whose contracts required them “to use the company for all or most of their banking services,” CNBC reported.
So where is the collapse of this bank for the tech industry? Who is most vulnerable, who will benefit, and what are some of the long-term implications for VC? To find out more, Karan Bhasin and Ram Iyer interviewed:
- Maëlle Gavet, CEO, Techstars
- Niko Bonatsos, Managing Director, General Catalyst
- Colin Beirne, Partner, Two Sigma Ventures
“We’re likely to see some consolidation in the VC class,” Gavet said.
“It was on the way, but that will probably speed it up because SVB has also been a great loan provider for GPs to do their capital commitment queries.”
Thanks for reading,
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“I want to see a fair valuation of the company and a clearly defined market worth at least $100 million.”
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