Essays by Eric Worrall
h/t resources; Apparently the collapse of SVB has shaken the market, leading to an increase in appraisals.
Climate tech startups face ‘big hole’ after Silicon Valley Bank collapse
Grace O’Donnell
Editor, Special Projects
Thursday, April 6, 2023 at 20:37 GMT+10When Silicon Valley Bank (SVB) suddenly collapsed in second largest bank failure in US historyMany startups and their venture capital backers focused on sustainability and tackling climate change have begun to act to secure their funding.
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Sophie Purdom, managing partner at Planeteer Capital, told Yahoo Finance recently: “There is a big hole in the missing piece of the climate capitalization pie. technique conference. “SVB played this really essential role in the ecosystem because they were willing to take on more technologically risky types of customers than maybe the four bigger banks were willing to step in. These tend to be smaller companies, smaller accounts, [with] higher risk premium.”
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And climate technology companies still have options to raise capital through equity and debt, although in general, companies will likely find it harder to raise capital.
“Hopefully this bank demise will increase the due diligence process for investors in these VC-backed startups, which will further slow down funding,” says Kyle Stanford , senior VC analyst at PitchBook, said. tell Yahoo Finance Live (video above). “That will make it even more difficult for these companies to raise capital… than in the past.”
In this case, it is certainly a good thing to increase due diligence.
The Silicon Valley Bank, which collapsed a few weeks ago, does not have a full-fledged risk officer for 8 months from April 2022 to January 2023.
I don’t think you have to be a financial professional to be concerned that the failure to appoint such a protracted risk officer could be a sign that SVB is taking unwise risks with money. depositors and potentially contributed to the collapse.
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