Be prepared for all the potential implications of SVB collapsing…
– How many of your software vendors will still be in business in a few weeks?
– Even if you don’t bank with SVB, how will your customer churn be affected by this if you have startups as customers (that may go bankrupt)?
– Will there be a firesale of startups to bigger companies b/c they can’t make payroll?
– How will this change hiring when potentially thousands of employees are laid off in 1-4+ weeks?
– How will future VC investing change if much of their dry powder money waiting to be invested is gone?
– How will startups fare if their runway is cut in half (or worse)? Even if a startup used 2-3 banks and one of them was SVB, that could still dramatically cut their cash runway.
– How will LPs of VCs (universities, nonprofits, pension plans, etc.) be affected by some of their returns being wiped out?
What are other implications?
My heart goes out to all those affected…