PitchBook News - What comes after SVB?

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The Weekend Pitch

March 19, 2023

Presented by Plante Moran

(Jenna O'Malley/PitchBook News)

The bankruptcy filing by SVB's parent company concludes the first chapter of the failed bank's collapse.

But even as the dust settles, ominous concerns and unknowns remain about where we go from here.

Silicon Valley Bank's blowup has left a gaping hole in the venture capital ecosystem and triggered a mass migration to alternative financial partners. Eventually, we will see a new version of SVB emerge—albeit under the auspices of new management that will likely have different priorities, and perhaps different values, than its predecessor.

And the consequences will be far-reaching for the venture industry.

Welcome back to The Weekend Pitch. I'm Andrew Woodman, and you can reach me at andrew.woodman@pitchbook.com or on Twitter @adwoodman.

ICYMI

PitchBook is providing ongoing coverage of the collapse of Silicon Valley Bank and its aftershocks. Visit our continuously updated page to follow along for all the SVB-related news, analysis and research, including leveraged-loan reporting by LCD.

Trivia

Despite a difficult environment economically and politically, agtech has seen sustained interest from investors, reaching $10.6 billion in funding globally for 2022. That's the second-strongest year on record, but a decrease from 2021's high. How many agtech deals did PitchBook track in 2022?

A.) 187 deals
B.) 567 deals
C.) 988 deals
D.) 521 deals

Find your answer at the bottom of The Weekend Pitch!

SVB was a lender of first resort
for startups

(CryptoFX/Shutterstock)

Startup loans didn't play a large role in Silicon Valley Bank's demise, but the bank's failure is bound to reshape the venture debt landscape.

PitchBook analysts unpacked the likely implications, which include: near-term uncertainty around the fate of existing loans, headwinds for early-stage startups seeking debt funding, and higher borrowing costs as lenders become more stringent.

Private credit steals the show

(ShutterstockProfessional/Shutterstock)

Private credit firms are pouncing on the opportunity afforded by a banking crisis. Amid the unsettling news around the Silicon Valley Bank's collapse and broader industry turbulence, these managers are ready to lend to companies seeking funding.

The newest set of opportunities comes on the heels of a robust 2022 for private credit managers, who have continued to raise ample dry powder and edged out banks on debt deals funding companies and acquisitions. Our 2022 Global Private Debt Report explains how this asset class has held up in the face of significant challenges arising from high inflation and other economic headwinds.

The state of VC, visually

(Funtap.Shutterstock)

There's a lot to digest when it comes to the state of venture capital. With the many ups and downs, it's hard to know what the trends are or how much the gains and slumps really matter. Understanding the data, let alone visualizing it, is a chore. Our Quantitative Perspectives report breaks it all down for you. It's like having your own data whisperer.

Quote/Unquote

"Investors in the banks will not be protected. They knowingly took a risk and when the risk didn't pay off, investors lose their money. That's how capitalism works."

—President Joe Biden, in remarks from the White House following the collapse of Silicon Valley Bank. He gave assurances that the banking system was resilient, but that the government would not bail out investors in the now-failed bank.

Stay tuned

Keep an eye out for these fresh insights and research reports coming out this week!

Q4 2022 Mobility Tech Report
Q4 2022 E-commerce Report
2022 Annual Real Estate Report
2022 Greater China VC Report

Trivia

(Alf Ribeiro/Shutterstock)

Answer: C.)

The correct answer is 988 deals. Glean more about agtech and these deals from our 2022 Agtech Overview and market map.

This edition of The Weekend Pitch was written by Andrew Woodman, James Thorne, Madeline Shi and Jacob Robbins. It was edited by Alexander Davis and Ron Prichard.

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The Weekend Pitch alternative financial partners venture capital ecosystem Silicon Valley Bank

PitchBook News - What comes after SVB?

ICYMI

Trivia

SVB was a lender of first resort
for startups

Private credit steals the show

The state of VC, visually

Quote/Unquote

Stay tuned

Recommended Reads

Trivia

Key phrases

Older messages

How SVB fallout will hit VC

SVB's path forward

Swooping in on SVB's wreckage

Some founders sticking with SVB

SVB borrowers face a quandary

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PitchBook News - What comes after SVB?

ICYMI

Trivia

SVB was a lender of first resort for startups

Private credit steals the show

The state of VC, visually

Quote/Unquote

Stay tuned

Recommended Reads

Trivia

Key phrases

Older messages

You Might Also Like

SVB was a lender of first resort
for startups