From Shanghai to Mumbai, Tech Chiefs Race to Contain SVB Fallout
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From Shanghai to Mumbai, Tech Chiefs Race to Contain SVB Fallout
(Bloomberg) -- Asia’s tech leaders, half a world away from the chaos that’s engulfed Silicon Valley, are scrambling to assess the potential ramifications for an industry that’s always relied heavily on US capital and connections to supercharge growth.
Most Read from Bloomberg
Financiers and entrepreneurs packed the Shangri-La’s ballrooms during a global Wharton alumni gathering in Singapore, huddling in groups and tables over gourmet buffet meals with the latest news on Silicon Valley Bank’s spectacular implosion on Friday a main topic of conversation. In Mumbai, startup founders and investors at a conference talked about nothing else, exchanging rumors about which fledgling company might be the first to fall. In Shanghai, SVB’s local partner and joint venture issued memos within hours of each other, seeking to calm worries about their stability.
In the past days, the region’s tech luminaries and family offices have watched with a mix of fear and fascination at the meltdown that engulfed a decades-old bank that once carried $200 billion of assets. The collapse sent shockwaves through Asia as major investors and sovereign funds rushed to check the exposure of their portfolios and investees to the failed lender, according to people familiar with the matter.
At an investment firm that backs ByteDance Ltd., executives were glued to their screens as they monitored SVB’s stock price and news headlines on Thursday night in Beijing, before deciding overnight to pull their funds out of the bank.
An executive of Airbnb-style lodgings service Xiaozhu, warned by its venture backers, pulled over on an expressway to withdraw the company’s deposits over the phone, and succeeded, one of the people said. A representative for Xiaozhu declined to comment.
ReutersWall Street 'fear gauge' options volume jumps to 4-year high as bank stocks sell off
Wall Street's most closely watched index of market anxiety jumped on Friday and options volume on the index soared to a near 4 year high as a growing crisis at SVB Financial weighed on stocks. The Cboe Volatility Index, an options-based indicator dubbed the Wall Street "fear gauge," jumped as much as 6.36 points to 28.97, before closing up 2.19 points at 24.8. VIX options, used by traders to place wagers on whether stock market volatility will rise or fall in coming weeks and months, changed hands in heavy volume, with some 2.36 million contracts traded.
2d ago
TechCrunchSilicon Valley Bank collapse is impacting many Indian startups
Over 60 YC-backed Indian startups have more than $250,000 stuck in accounts with Silicon Valley Bank and nearly two dozen have more than $1 million tied with the lender, according to a survey by and among the startups seen by TechCrunch, illustrating how the worst bank failure since the 2008 financial crisis is also impacting firms 8,000 miles away. Dozens of young Indian startups backed by the likes of YC, Accel, Sequoia India, Lightspeed, SoftBank and Bessemer Venture Partners banked with Silicon Valley Bank, sometimes as their only banking partner, and couldn’t take out the money on time on Thursday, multiple people familiar with the situation said. VCs are cautious about divulging the names of the impacted startups out of fear that it might impede the young firms’ prospects of raising capital in the future.
1d ago
The Wall Street JournalU.K. Offers Aid to Silicon Valley Bank Customers
The U.K. government said Sunday it was working on a lifeline for companies that had deposits locked up at Silicon Valley Bank’s British arm following the collapse of its U.S. parent. In a statement, the U.K. Treasury said that it wanted to “avoid or minimize damage to some of our most promising companies,” adding the plan would ensure their short-term operational and cash flow needs were covered. Silicon Valley Bank collapsed Friday in the second-biggest bank failure in U.S. history after a run on deposits doomed the tech-focused lender.
2h ago
The TelegraphTreasury planning cash lifeline for companies hit by Silicon Valley Bank collapse
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11h ago
TechCrunchY Combinator calls on Congress to act on SVB collapse
Serial entrepreneur and venture capitalist Garry Tan is less than three months into his new job as the CEO of Y Combinator, one of the most famed accelerator programs in tech. Along with pretty much every other corner of the startup world, YC was also affected by Silicon Valley Bank's collapse: 30% of companies are exposed through SVB and are at risk of not being able to make payroll, he tweeted Saturday. The investor called on Congress to act more decisively to save SVB after it was taken over by regulators on Friday.
14h ago
TheStreet.comSVB Collapse: Legendary Financier Bill Ackman Warns of Massive Bank Runs
The hedge fund manager says that it is likely that Silicon Valley depositors will have access to around 50% of their funds on Monday, but the remaining 50% will not be available for 3-6 months.
12h ago
MarketWatch20 banks that are sitting on huge potential securities losses—as was SVB
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2d ago
Fox BusinessSilicon Valley Bank collapse: Mark Cuban says Fed should 'immediately' take this action
Mark Cuban raised questions about how regulators had allowed Silicon Valley Bank to end up in such a vulnerable position, and demanded that the Federal Reserve take immediate action.
19h ago
TechCrunchInvestor Mark Suster says a "handful" of bad actors in VC destroyed Silicon Valley Bank
Yesterday at around noon in Los Angeles, investor Mark Suster of the venture firm Upfront Ventures began urging "calm" on Twitter. Silicon Valley Bank had bungled its messaging on Wednesday around an effort to strengthen its balance sheet, and startup founders were beginning to fear that their deposits at the tech-friendly, 40-year-old institution were at risk. "More in the VC community need to speak out publicly to quell the panic about @SVB_Financial," wrote Suster, saying he believed in the bank's health and arguing that the biggest risk to startups, the VCs to whom the bank has long catered, and to SVB itself would be "mass panic."
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MarketWatch‘The government has about 48 hours to fix a soon-to-be-irreversible mistake’: Hedge-fund titan Bill Ackman warns some businesses may not be able to meet payroll in wake of SVB’s failure
Silicon Valley Bank had boasted of having relationships with more than half of the venture-backed companies in the U.S.
18h ago
The TelegraphSilicon Valley Bank collapse could spark the next financial crash – but we cannot bail out failed bankers again
Depositors can't get their money out. Payrolls might not be met next weekend. And small companies, especially in the fast growing technology industries, might soon face closure as their assets are frozen. There will be a lot of nervousness when the financial markets open on Monday morning following the collapse of the Silicon Valley Bank in the United States and the decision by the Bank of England to take control of its London arm.
21h ago
Barrons.comHow SVB Was Doomed By a Bad Bet on Mortgage Securities and the Fed’s Rate Hikes
Silicon Valley Bank stumbled due to a mismatch of assets and liabilities, a mistake reminiscent of the thrift crisis of the 1970s.
18h ago
BloombergSVB Fallout Spreads Around World From London to Singapore
(Bloomberg) -- The fallout from the collapse of Silicon Valley Bank is beginning to spread around the world. Most Read from BloombergUS Discusses Fund to Backstop Deposits If More Banks FailSVB Fallout Spreads Around World From London to SingaporeStartup Bank Had a Startup Bank RunSVB’s 44-Hour Collapse Was Rooted in Treasury Bets During PandemicFDIC Races to Return Some Uninsured SVB Deposits MondayStartup founders in California’s Bay Area are panicking about access to money and paying employee
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MarketWatchSilicon Valley Bank CEO Greg Becker cashed out $2 million just before the collapse
The chief executive of Silicon Valley Bank cashed out stock and options for a $2.27 million net gain in the weeks before Friday's collapse, public filings show.
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