No one can predict the ensuing repercussions of a moment like this. We are in uncharted territory.
I’m writing this bi-weekly newsletter on a tight deadline, so when I saw the press release beginning with “Silicon Valley Bank in Santa Clara, CA closed today,” I had to turn around. I realized that it might.
To protect SVB’s former customers with approximately $175 billion in deposits, the Federal Deposit Insurance Corporation (FDIC) transferred assets to a new entity, the National Bank of Deposit Insurance of Santa Clara.
Insured persons who make deposits of $250,000 or less will have access to their money on Monday morning, according to the FDIC. An uninsured customer will receive an advance dividend in her next 7 days, but beyond that she will only receive a certificate of the remaining balance.
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Will those customers be perfect? It’s hard to say:
My favorite bank in Silicon Valley has gone bankrupt. sit with it
No one can predict the ensuing repercussions of a moment like this. We are in uncharted territory.
No doubt this will affect the deal, but uninsured customers running startups will have to buy laptops, pay cloud vendors, and cover employee salaries and benefits.
I’m no market watcher or financial expert, but here are some tips. Panic is a luxury. If you have been personally affected by this news, take a breather before taking action. talk to some friends Take a walk.
And don’t let fear rule your day.
get well,
Walter Thompson
Editorial Manager, TechCrunch+
@yourprotagonist
Building a Lean B2B Startup Growth Stack
Image credit: Jose Bernat Bacete (opens in new window) /Getty Images (image modified)
Choosing the right tool for the job is easy if you know exactly how to proceed.
But most B2B growth marketers don’t have a working blueprint. That’s why Primer CEO Keith Putnam-Delaney shared his TC+ guest post where he identified the best tools for early stage, mid stage and late stage startups.
“The current budget-constrained environment should be a plus for marketers,” he wrote. “Teams need to think deeply about what they absolutely need and which tools will make them more efficient (or less efficient).”
Venture firms advise investee companies to move funds out of SVB
Image credit: Spencer Pratt/Getty Images
“We ask you to stay calm because that’s what’s important,” Greg Becker, CEO of Silicon Valley Bank, said on a Zoom conference call with customers yesterday.
After SVB acknowledged that a slowing pace of trading and “increasing customer cash burns that put pressure on the balance of cash flows” were impacting its performance, Becker said SVB is seeking to strengthen its financials. After announcing a plan to sell $1.25 billion of common stock, it was doing damage control.
SVB is the bank of choice for so many startups, so Natasha Mascarenhas and Alex Wilhelm spoke to a few investors (on-record and off-record) to find out how they advise companies they invest in. I checked.
Q1 2023 Market Map: Optimizing and Managing SaaS Costs
Image credit: John Lund Photography (opens in new window) / Getty Images
Since the start of the recession, SaaS has become a game of fine profit. Startups that find the right tools to drive growth while optimizing vendor and cloud costs can boost short-term gross margins.
Jonathan Schwartz, Investment Associate at Ibex Investors, said:
“Reducing costs instead of growing just won’t work. Similarly, maximizing growth while paying little attention to costs won’t work in 2023.”
A new wave of VC funds shows it’s time to rethink how much LPs are ‘too much’
Image credit: Getty Images
From 2015 to 2021, the average number of limited partners associated with venture funds increased steadily.
Reporter Rebecca Szkutak speaks with VCs Haris Khurshid (Chalo Ventures) and Mac Conwell (RareBreed Ventures) about why some investors are beginning to reject the traditional notion that fewer LPs is better I learned
“It’s very difficult to raise institutional money because people are raising first or second money, but people can’t write enough checks,” Conwell said. said.
“Since we raised our first round of funding, I’ve been thinking about ways to increase the number of LPs you’re working on.”
Pitch Deck Teardown: $550,000 Angel Deck on MiO Marketplace
Image credit: MIO Marketplace (opens in new window)
MiO Marketplace, which connects media publishers and buyers, recently completed a $550,000 angel round that brings the company’s valuation to $3.6 million.
“MiO is pitching in some very important areas, which is very welcome,” writes Haje Jan Kamps, who disassembled the company’s 16 slide deck.
- cover slide
- History slide (“The Evolution of Online Marketplaces”)
- vision and mission slides
- problem slide
- Solution slide
- Opportunity slide
- market size slide
- Competition Slides (“B2B SaaS for Media Buyers/Sellers”)
- Value Proposition Slide 1 (“Buyer Features”)
- Value Proposition Slide 2 (“Intelligence for Sellers”)
- Business model slide (written as “market development”)
- traction slide
- Financial slides (labeled “Forecast”)
- Team Slide (“Founders”)
- Board of Directors slide
- contact slide
Dear Sophie: Last Minute H-1B, O-1A, EB-1A Special Qualification Preparation
Image credit: Bryce Durbin/TechCrunch
Dear Sophie
How many employers will be signing up for the H-1B lottery this year?
Is it still possible to include additional candidates by next week’s deadline?
— fast-paced founder
Dear Sophie
If I am in the U.S. and do not yet have a work permit, can I improve my portfolio of achievements to establish O-1A Special Ability Visa eligibility and later EB-1A Self-Petition Green Card eligibility? ?
— Serious and Extraordinary
Seven Investors Reveal Fintech Updates for Q1 2023
pile of money coins
How are fintech investors adapting to this recession and what advice do they have for portfolio founders?
Mary Ann Azevedo interviewed seven VCs to find out more about the types of opportunities they’re currently looking for, asking how (or if) they’ve changed their thesis to match current macroeconomic trends. .
- Charles Birnbaum, Partner, Bessemer Venture Partners
- Aunkur Arya, Menlo Ventures Partner
- Ansaf Kareem, Venture Partner, Lightspeed Venture Partners
- Emmalyn Shaw, Managing Partner, Flourish Ventures
- Michael Sidgmore, Partner and Co-Founder, Broadhaven Ventures
- Ruth Fox Blader, Partner, Anthemis
- Miguel Armaza, co-founder and general partner at Gilgamesh Ventures
