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No one can predict the consequences of such a moment. We are in uncharted territory.
I write this bi-weekly newsletter on a tight deadline, so when I saw a press release that started with “Silicon Valley Bank, Santa Clara, CA, closed today,” I knew I needed to pivot.
To protect SVB’s former customers with about $175 billion in deposits, the Federal Deposit Insurance Corporation (FDIC) transferred assets to a new entity: Deposit Insurance National Bank of Santa Clara.
Insurance customers who deposited $250,000 or less will receive their money Monday morning, the FDIC said. Uninsured customers will receive an advance dividend within the next seven days, but beyond that, they will only receive a certificate for the remaining balance.
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Will those customers be complete? “When the FDIC sells the assets of Silicon Valley Bank, future dividend payments can be made to uninsured depositors,” he said.
Silicon Valley’s favorite bank has just failed. Sit with that.
No one can predict the consequences of such a moment. We are in uncharted territory.
This will no doubt affect the deal, but uninsured customers who run startups will still have to buy laptops, pay cloud vendors, and cover employee salaries and benefits.
I’m not a market watcher or a financial expert, but here are some tips: Panic is a luxury. If you are personally affected by this news, take a breath before you act. Talk to some friends. step up.
And don’t let fear rule the day.
Goodbye ,
Walter Thompson
Editorial Manager, TechCrunch+
@your main actor
Building a lean B2B startup growth stack
Image Credits: Jose Bernat Bassete (Opens in a new window) / Getty Images (image edited)
Choosing the right tool for the job is easy when you know exactly how to proceed.
Most B2B growth marketers don’t have a blueprint to work with, but Primer CEO Keith Putnam-Delaney shared a guest post with TC+ on which tools are best suited for early-stage, mid-stage, and late-stage startups.
“The current tight budget environment should be viewed as a positive by marketers,” he wrote. “It forces teams to think deeply about what matters most, which tools will increase (or detract from) efficiency.”
Venture firms are advising portfolio companies to withdraw funds from SVB.
Image Credits: Spencer Platt/Getty Images
“My advice is just to calm down, because that’s the bottom line,” Silicon Valley Bank CEO Greg Baker said on a conference call with clients yesterday.
Becker was doing damage control after SVB announced plans to sell $1.25 billion of common stock to shore up its financing after the bank found that a slowdown in operations and a “higher customer cash burn balance sheet” were impacting its performance.
Since SVB has been the bank of choice for many startups, Natasha Mascarnhas and Alex Wilhelm spoke to a number of investors (both on and off the record) to find out how they are advising their portfolio companies.
Q1 2023 Market Map: SaaS Cost Optimization and Management
Image Credits: John Lund Photography Inc (Opens in a new window) / Getty Images
Since the recession began, SaaS has become a good profit margin play. Startups that get the right tools to drive growth while increasing vendor and cloud spending can boost short-term gross margins.
“Investors are knocking on the door to see improvements every quarter,” said Jonathan Schwartz, investment partner at Ibex Investors.
“Simply cutting spending in lieu of growth won’t work. Likewise, boosting growth with less sensitivity around spending won’t work in 2023.”
New VC funds show it’s time to rethink how many LPs are ‘too many’
Image Credits: Getty Images
Between 2015 and 2021, the average number of limited partners associated with venture funds increased.
Reporter Rebecca Skutack spoke with VCs Harris Khurshid (Chloe Ventures) and Mac Conwell (Rareed Ventures) to find out why some investors are starting to reject the conventional wisdom that few LPs are favored.
“When people are raising their first fund or their second fund, it’s very difficult to get institutional funding, but people can’t write big enough checks,” Conwell said.
“Ever since I made my first payment, I’ve been thinking about how to increase the number of LPs you make.”
Pitch Deck Teardown: MiO Marketplace’s $550K Angel Deck
Image Credits: MIO marketplace (Opens in a new window)
Mio, a marketplace that connects media publishers with buyers, recently closed a $550,000 angel round, valuing the company at $3.6 million.
“Mio nailed it in a few key areas, which is really exciting,” wrote Haje Jan Kamps, who developed the company’s 16-slide deck.
- Cover slide
- History Slide (“The Evolution of Online Marketplaces”)
- Vision and mission slide
- Problem slide
- The solution slider
- Lucky slider
- Market size slide
- Competition Slide (“B2B SaaS for Media Buyers/Sellers”)
- Value Proposition Slide 1 (“Attributes for Buyers”)
- Value Proposition Slide 2 (“Seller’s Knowledge”)
- Business Model Slide (titled “Go to Market”)
- Drag slide
- Financial Slide (labeled “Projects”)
- GroupSlide(“Founder”)
- Slide of the board of directors
- Contact slide
Dear Sophie: Last minute H-1Bs, O-1A and EB-1A extraordinary approval arrangements
Image Credits: Bryce Durbin / TechCrunch
Dear Sophie,
How many employers are going to register for the H-1B lottery this year? Will it be less because of all the layoffs?
Is it possible to include more candidates before the deadline next week?
– Fast founder
Dear Sophie,
Can I update my portfolio of work activities if I am in the US for an O-1A special skills visa and later an EB-1A self-petitioner green card but do not yet have a work permit?
– Sincere and unique
7 Investors Reveal What’s Hot in FinTech in Q1 2023
Coins in a pile
How are fintech investors adapting to this downturn, and how are they mentoring founders in their portfolios?
Mary Ann Azevedo interviews seven VCs to find out how (or if) anyone can adapt their writing to current macroeconomic trends and learn more about the types of opportunities they’re looking for right now:
- Charles Birnbaum, Partner, Bessemer Venture Partners
- Aunkur Arya, Partner, Menlo Ventures
- Ansaf Karim, Venture Partner, Lightspeed Venture Partners
- Emmaline Shaw, Managing Partner, Flourish Ventures
- Michael Sidgmore, Partner and Co-Founder, Broadhaven Ventures
- Ruth Fox Blader, Partner, Antimis
- Miguel Armaza, Co-Founder and General Partner, Gilgamesh Ventures
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