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March 14, 2023 | Tom Ballard

Silicon Valley Bank collapse has broader implications for start-ups

PitchBook writes that it "couldn't have come at a worse time for start-ups."

PitchBook issued an analyst note yesterday on the collapse of Silicon Valley Bank (SVB) which added that it “couldn’t have come at a worse time for start-ups.”

Noting that venture capital (VC)-backed companies were already facing a capital crunch after market volatility forced investors to slow dealmaking and set higher benchmarks for financing, the analyst note explained that debt financing options for start-ups have also taken a hit. “Other banks and lenders are stepping in, but no matter how quickly they may be able to stem the fallout, SVB’s collapse is sure to irrevocably change the inner workings of the VC industry,” PitchBook wrote.

The analyst note (click here) breaks down how SVB got to this point, the immediate impact of SVB’s failure, the broader implications for venture lending, and what a future venture capital market could look like without Silicon Valley Bank.

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