Weekly newsletter on technology, startups, and venture capital.

Our VC fund Race Capital is partnering with UC Berkeley to co-host a generative AI & Berkeley event on campus. Featured speakers include Harrison Chase of Langchain, Amr Awadallah of Vectara, and more.

More info & RSVP here -> https://lu.ma/ai-berkeley

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Written by Chris McCann, General Partner @ Race Capital. More about me.

What a wild few days in startup & VC land. Luckily we have some good news for Monday morning but here’s a quick recap of everything that went on and a few interesting reads from the situation. 

• A recap of what happened with SVB and why it failed. TLDR SVB depositor base grew too quickly in 21’/22’ and bought too many long term assets at the top of the market, leading to a duration mismatch.
• After Silvergate, SVB, and Signature Bank all failed, the Federal Reserve stepped up in a big way to protect depositors across mid-market banks.
• While depositors will be safe, startups and funds should look to diversify their banking partners for risk management reasons. When opening new accounts remember to follow good hygiene practices.
• While the immediate pain has been averted, expect a more difficult funding environment for the next few quarters. 
• 3 of 7 Circle's banking partners (Signature, SVB, Silvergate) banking partners went under, making USDC and the stablecoin more fragile than it had been before. Expect banking relationships in the Web3 space to become more difficult to obtain. 

• By Company: Databricks, GoodNotes, Zeet, Polysign, Opaque, Lightning Labs, OtterTune, and more
• By Role: Engineering, Data Science, Product, Design, Operations, Finance, Legal, and more
• By Location: SF Bay Area, New York, London, and Remote
• Browse more open roles across our portfolio at Race Capital's Portfolio Job Board.

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