The failure of SVB saved the already muted venture capital market

Many initially thought this could have broader implications for the struggling VC ecosystem.

When Silicon Valley The bank collapsed earlier this month, after more than a year of navigating choppy waters as the venture faced over-inflated company valuations and an unlikely exit market.

But while SVB’s collapse may have a lasting impact on the banking and venture debt industries, it doesn’t appear to have a lasting negative impact on one of the areas hit hardest by ventures: deal activity.

Starting in early 2022, the amount of venture capital deals has been gradually decreasing. While many investors and founders are hoping for some relief in 2023, that’s not happening—yet, at least. So far, January and February have been downbeat, according to Crunchbase data, with international funding totaling $18 billion in February, the lowest total since February 2020.

By striking a deal in such a vulnerable environment, it seems likely that any market stimulus could have an impact, but lawyers and VC firms told TechCrunch+ that SVB’s death doesn’t seem likely to make matters worse. Whatever the news created for investors and founders seemed to pause.