What is going to happen to the tech job market now that Silicon valley bank failed?
So the silicon valley bank just failed, which was the go to bank for startups. Now that they failed what is going to happen to the tech job market? Are we looking at a dotcom crash or 08 crash? Or could things end up being ok
Depends how much of the $ was lost. SVB was the place startups housed money in, if they didn’t lose much then they likely go with a bigger bank moving forward to mitigate risk like this again. If they lost a lot of $ then the company closes.
Roku lost 26%, RIP. They won’t be closing but it obviously wont be BAU.
I am so interested in this. SVB just accelerated this tech recession. Imagine this - some series a company sitting on $3m in cash that they raised last year. Slowly been each away at the money for 6month waiting for a good time to raise capital when vc interest picks back up. Now they realized the 3m is gone and still no way to raise another round.
Start-ups was able to mitigate the tech layoffs…
It really depends how much SVB’s assets are still worth — if I’m not mistaken, the ~$2B hole they were trying to fill was just the losses from selling SOME of the bank’s underwater assets in order to stay liquid. Now that the bank is shutdown, they may need to liquidate all the rest of their assets at a steep loss. Which means SVB customers will eat the loss cuz 90% of the assets are uninsured.
Yes but they didn't lose 90% of assets. Likely they will have large losses if they are forced to liquidate but a good portion of that capital will be intact. The largest unknown will be the speed of recovery. If PE or the gov doesn't step in with a bailout it could take weeks to months.
Yes, but their assets are likely all down by a significant amount — stock? bonds? real estate? They’re all down a huge amount over last 12-18 months. So if government doesn’t step in to inject billions of dollars of cash, then they’ll need to liquidate and everyone gets in line to hopefully get some of their money back.
QQQ back to $50.
Will get C l a p p e d
👏🍑
‘Dem cheeks