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Hello Crunchers,
Today, there is only one story on everyone’s lips: the sudden and dramatic collapse of Silicon Valley Bank (SVB), the 40-year-old Silicon Valley institution. With $209 billion of assets under management at the time of its bankruptcy, it is the second largest bank failure in US history.
A host of startups suddenly found themselves in trouble when the bank went through a Swift-Velocity crash. In this special edition of the Daily Crunch, we round up what the sudden drop in value means across the industry.
— Haha
The main TechCrunch story
- Regulators step in: natasha m. reports that the bank and its 17 branches were closed by the California Department of Financial Protection and Innovation. The agency appointed the Federal Deposit Insurance Corporation (FDIC) as receiver.
- So what happened?: (TC+): Alex can be trusted to provide context, and concludes that it appears that the rumor that SVB is in trouble led to a run on the bank, putting him in current problems soon after.
- What the founders think: Several of my colleagues took to the (virtual) streets and found out how the founders are reacting to the collapse of the bank.
The demise of Silicon Valley Bank
Before the regulators closed the bank, a lot happened very quickly:
- For you, special price: manish and ingrid learned that Silicon Valley Bank was in talks to sell itself.
- get out while you can: natasha m. and Alex reported that VC firms began advising their portfolio companies to pull money out of SVB (TC+).
- A bump in the road: natasha m. wrote that some SVB clients had difficulties transferring funds from the bank.
- In free fall: natasha m. and Alex he followed up with his report that SVB shares were plunging, while the whole mess was unfolding.
- filling the void: Never to waste a good crisis, startups are jumping into the gap to fill the void that SVB is leaving behind for the ecosystem, natasha m. and maria anna informed.
- maybe aim better: You could imagine that someone at Silicon Valley Bank would have stopped to think: “Hmm, maybe today is not the right time to declare that we are propping up our balance sheet.” Conny he writes, concluding that SVB shot itself in the foot quite spectacularly in the wake of crypto bank Silvergate’s announcement that it was going out of business. jaquelyn analyzed the downward spiral of Silvergate for TC+.
- So, uh, now what?: Since the SVB funds are blocked (at least until Monday, say the regulators), how is the payroll etc. paid? Alex take a closer look at what startups (TC+) are up against.
Building a lean growth stack of B2B startups
Image Credits: Jose Bernat Bacete (Opens in a new window) /Getty Images (Image modified)
Selecting the right tool for the job is easy when you already know exactly how to proceed.
However, most B2B growth marketers don’t have a plan to work from, which is why Primer CEO Keith Putnam-Delaney shared a guest post with TC+ that identifies which tools are the best. most appropriate for early-, mid-, and late-stage startups.
“The current tight budget environment should be seen as a positive by marketers,” he writes. “It will force teams to think deeply about what is absolutely necessary, what tools will add to (or take away from) efficiency.”
TechCrunch+ is our membership program that helps start-up founders and teams get ahead of the rest. You can sign up here. Use code “DC” to get 15% off an annual subscription!
And some other news too
good, good, there were other things happen besides SVB going straight to hell without passing “go” today too. Here are some things worth reading on the rest of the site…
Many novelties in cybersecurity today, such as carly Reports SEC Indicts Blackbaud For Failing To Disclose “Full Impact” Of Ransomware Attack; Zack writes that telehealth startup Cerebral shared millions of patient data with advertisers; and Zack also reports that PeopleGrove’s security flaw exposed users’ personal information. Meanwhile, Lawrence dove in to explore how the FBI proved that a remote administration tool was actually malware.
And here are some non-SVB and non-cybercrime headlines for you too. Aren’t we generous today?
