Silicon Valley Bank collapse sets tech industry up for bigger crisis

:"This was not so much a classic large-scale bank run in which mass psychology played its part on a grand scale, but a bitchy high-school playground in which the cool thing to do was to bank with SVB until it no longer was."the bank's weak balance sheet and even weaker oversight for months. The true revelation here is the utter lack of financial acumen among Silicon Valley's supposed top minds.

"I think we have proven that the average CFO/Treasurer in the venture world doesn't know how to read a balance sheet," a billionaire hedge fund manager cracked to me over email. And if the VCs who are supposedly providing sage advice don't know how to manage basic business risk, how are they supposed to teach their portfolio companies?

For the startups and businesses that had their money in Silicon Valley Bank, this panic should trigger a meaningful conversation about what it means to be a mature company. The pressure to secure the next round of funding means that while startups grow fast, they may not have time to develop. Perhaps if portfolio companies were allowed to slow down a bit earlier in their life cycles — building the proper financial infrastructure — similar disasters could be avoided.

Belgique Dernières Nouvelles, Belgique Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

TELL US: How did you do business with Silicon Valley Bank or Signature Bank?U.S. regulators closed Silicon Valley Bank on Friday after it experienced a traditional bank run, where depositors rushed to withdraw funds all at once. New York-based Signature Bank also collapsed. I didn’t. Here is your proof of the ds controlled bidens administration of complete failure to our Nation and its people! It’s a wonderful bank, with Biden as President, no matter what kind of investment you make, you never lose. Spread the word.
La source: wjxt4 - 🏆 246. / 63 Lire la suite »