If you are a startup that was planning on raising money in the next few years, today is probably the worst possible day of your startup life. I think the contagion from SVB is going to run through the venture capital community more than it runs through the financial sector, at large.
Discussion
Good most start ups bleed too much money and run losses because of vc.
Never felt better about bootstrapping my startup from free cash flow than today
Nowhere to go but up
Would this, ironically, provide support for incumbent publicly traded innovation stocks? I.e. does money otherwise planned for VC flow into ARKK?
Startups probably going through down rounds outs of the overly high evaluations during lockdowns. I’m seeing some struggling to raise here too. Also US startups are funded 50% - 70% more than Europe and up to 90% more than 3rd world country. I received 4-6% compared to my direct competitor in US. Would be interesting to see if there are other reasons ie low tech adaption , impact of “crypto” hype etc. Over here, gov’t hogs the startup funds + heavy corruption , so a balance of capitalism and socialism is crucial. It would be bad for more authoritarian country if free market has a nasty outlook in the startup ecosystem
Luckily there are anon/nym angel investors 😉