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Bloomberg: What SVB Fallout Means for Startups, Venture Capital

Passion Capital Investments Partner Eileen Burbidge says her company does have exposure to Silicon Valley Bank through some of the companies they are invested in and discusses what the bank’s issues mean to startups and venture capital firms with Francine Lacqua on “Bloomberg Surveillance Early Edition.”

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This was a bit of a shock to a lot of people do you have any exposure through some of the companies that you’re invested in I heard the sort of run through of a lot of analysis you’ve had in the last 24 hours which is great and super

Comprehensive clearly I think you know some people are testing to the fact that about 50 of American startups uh had their money with Silicon Valley bank and they were clearly making a large push across Europe as well they’ve been operating in the UK for more than 10 years they’ve recently expanded into

Nordics as recently as just three months ago and so making a really good push and so there is a lot of exposure across the start of e and the Venture ecosystem here in Europe so Eileen what does that mean first of all can you give us a sense of what kind

Of companies are exposed and what do you tell them right now do they keep their money with svb it’s also I imagine very difficult if you’re a smaller startup you may not have a second bank account so it’s difficult to get your money out and put it elsewhere

Yeah there’s there’s range of reactions and it’s it’s really interesting to see because obviously a passion we have more than you know about 50 active portfolio companies we also do banking as well for the fund and for our fund manager and then we’ve also seen what co-investors and others are telling their portfolios

As well as how Founders are reacting and there’s clearly one sort of set of reaction which is let’s move our money and just you know to be clear the reason for that thought process is why wouldn’t you or looking at a cost-benefit analysis why would you not look to

De-risk exposure and so it just seems like very little action or investment or resource will be required to Simply you know diversify yourself away from this on the other hand probably just as many people saying listen this is overblown the banks still have you know more than 200 billion

Dollars worth in assets what happened and what triggered you know its need to raise Capital was you know Bond performance that is pretty separate from what’s happening on the deposit side as well as in terms of its AUM and so this should all blow over but you’re getting both

Yeah is it too soon to make a call on that and again you know we don’t want to fill anyone with panic so I guess cool heads need to Prevail in this kind of environment how many calls have you fielded since this happened for from Founders and actually aren’t really sure

What to do so we have fielded calls from Founders that’s true we have also fielded queries from our limited partners or our investors in our funds to ask us about our opinion and the earliest of that came in uh the beginning of this week so I think it’s the right thing and I’m

Quite reassured if I’m honest with you that Founders are asking for advice and sort of wanting to stick their heads up and see what others are doing we have the same sentiment as you did or as you just expressed which is cooler heads will prevail think about the long-term

Viability and sort of indicators of this on the sector overall on the bank you know for companies that have a large number of deposits at Banks clearly there should have always been a treasury strategy in place um this is maybe a good wake-up call to put one in place if that wasn’t already

The case but in terms of you know early stage startups or people with what I think Silicon Valley Bank would term as in materials or deposit sizes or closet books I we don’t think this is existential to borrow a term from somebody that you ran through in the run

Through and your recap just opening up this segment




  1. About the current bank situation, I'm really concerned. I am worried about a lot more if a bank the size of SVB may fail. I have a friend who manages a fast-growing startup and was severely impacted by the bank run. I have taken more than $840k out of my bank. Since the FDIC only provides coverage up to $250K, an implosion could have negative consequences. presently want to invest in the stock market. Does anyone have any ideas on how I might proceed?

  2. The failure of Silicon Valley Bank has torn into global markets, with investors ripping up their forecasts for further rises in interest rates and dumping bank stocks around the world. I'm at a crossroads deciding if to liquidate my dipping 200k stocck portfoliio, what’s the best way to take advantage of this bear market?

  3. I am new to the stock market. Every stock that I bought so far, I was out of luck because I bought them when they were expensive. I feel I missed out on all the stock opportunities so far for the tech stocks.I believe having 200K yearly income would be a good investment so I want to plug all my savings into the stock market. I know this sounds a bit dull but I would like to know if I should learn investing or let somebody else (more capable like a Fin-Advisor) do it for me? Please share your thoughts. I am kind of tired of searching for a good stock to buy and losing all the good opportunities

  4. Maybe these VC instead of blindly investing in some lame app idea actually look into small businesses that have shown positive cash flow and seriously have potential not just in tech and not simply for nerd who make some lame app that not proven yet!

  5. Classic example of the Hubris by the so-called smart people in Silicon Valley all banking at the same Bank. Honestly, such a concentration in one industry is rare. Moreover, the concentration in High-Tech, which is riskier vs. other industries, is rarer. Surprised by the auditors at the Fed did not tell them to diversify many years ago. What I don't understand that a healthy Bank like SVB can have a run. Of the $200 billion in assets – $120 billion was in Cash and Treasuries. All the Bank had to do is pledge Treasuries to the Fed. I guess the VC crowd induced this run. Good investigation of this cabal is needed.

  6. ربي يسعد أيامك ويوفقك ويسهل لك كل خير ويرضئ عليك وعلى وألديك دنياء وآخره ويجبر بخاطرك ويستر عليك ويحقق لك كل مافي نفسك ويصلح حالك وأحوالك وأولادك وأهلك ويرزقك من حيث لا تحتسب ويرزقك اولاد الحلال و الصبر ورحمة والعفو والعافيه والصحه والرضى والنجاح الفردوس الأعلى من الجنة يالله يارب ويسخر لك القلوب القاسية والرقيب العاصيه ويفرج همك وغمك وحزنك وضيقك ويحميك ويخليك ويحفظك من كل شر وبلاى وسوى ومكروه الله ينور طريقك وقلبك الله يبيض وجهك و يشرح صدرك و يرفع قدرك و يعلي كلمتك و يوفقك في حياتك و يقض عنك دينك و يوسع في رزقك و يبارك لك في عمرك و يجعل محبتك في قلوب عباده و يسخر لك من تعرف و من ﻻتعرف و يجعلك مباركا في الدنيا و مغفوراً ذنبك في الآخرة و يحميك من عين الحاسدين و من نظرات الشياطين و يرزقك برزق ليس له حدود و يسخر لك كل الجنود و من الشر يفك عنك كل القيود ويصلح حالك وبالك و يريح قلبك و يغفر لك كل خطيئة علمت بها أو لم تعلم بها و أسأل الله الكريم أن يعيذك من جهد البلاء و درك الشقاء و سوئ القضاء و شماتة اﻷعداء كما أسأله أن يعيذك من زوال نعمته و من تحول عافيته و فجأة نقمته و جميع سخطه و أسأله أن يرضى عنك رضاً ﻻ يعقبه سخط و أسأله ألا يحرمك كل حسنة و أن يبعد عنك و يمحو كل سيئة اللهم و ارحم أمواتنا و أموات المسلمين اللهم امين
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  7. Every single senior Bank Executive hired by SVB should be made to cough out their bonuses and salaries they have taken over the last 5 years. They were the ones who steered the bank into this state and they are the ones who have taken all the credits and monies and bonuses. And now others are paying for it? Oh my goodness.

  8. I don't see any problems; to solve the financial problem of the SVB all it takes is the sleepy pres. BIDEN authorizes the Fed to print an additional $2 trillion and bail out the SVB and other Silicon Valley banks once money printing has become fashionable in the UNITE STATES. 😂😂😂😂😂😂😂😂

  9. Majority lenders will be from H1 visa IT people from India probably, without having a green card they are given all sorts of loans from buying properties to taking business loans and guess what majority of that money will be funded to facist govt RSS terrorist organization in India. Time to wake up common people check the currupt corporate and politicians who got them here on this visas here in US without any background check on them who and what they are, what harm they can do to companies and other institutions in US

  10. First …. This bankruptcy robs half the start ups of the cash needed to continue. Nearly all the startups had much more than the $250,000 FDIC insured amount. This will end innovative new products in their tracks (beginning Monday employees will not be payed).
    Second …. Many banks have done the same thing as SVB … invested in long term T bonds for a better return. But because the Federal Reserve is doubling the rate of return, existing bonds have lost half their value. This makes the banks insolvent and vulnerable to a bank run.
    Third …. Many Pension funds have also invested in long term bonds and now are incapable of making good on future pension payments.
    Fourth …. Then it gets worse with Bank Bail Ins when the FDIC insurance funds are depleted.

  11. Startup or not, these companies aren't in the business to evaluate financial risk or banking risk. Best to take your money and run to another bank, reality is no one knows and people are always talking about running away in hindsight analysis.

  12. Bank run on an otherwise healthy company. This can EASILY happen to JPM, WF, BOA…all you need are people in mass to go to banks and start asking for cash. Hell…local branches could not cover you today.


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