Silicon Valley Bank goes bust — regulators take control of $175B+ in deposits

TechCrunch Newsletter

By Haje Jan Kamps Friday, March 10, 2023

Hi, Crunchers, Today, there's only one story on everyone's lips: The sudden and dramatic collapse of Silicon Valley Bank (SVB), the 40-year-old Silicon Valley institution. With $209 billion of assets under management at the time of its failure, it's the second-largest bank failure in U.S. history. A huge number of startups suddenly found themselves in a pickle as the bank went through a Swift-Velocity Breakdown. In this special edition of the Daily Crunch, we summarize what the Sudden Value Bust means across the industry. — Haje Image Credits: David Paul Morris/Bloomberg / Getty Images

The TechCrunch Top Story Regulators stepping in: Natasha M reports that the bank and its 17 branches were closed by the California Department of Financial Protection and Innovation. The agency appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. So, er, what happened?: (TC+): Alex can be trusted to provide the context, and concludes that it seems like the rumor of SVB being in trouble caused a run on the bank, which put it in actual trouble soon after. What the founders think: Several of my colleagues took to the (virtual) streets and got the lowdown on how founders are reacting to the bank's collapse.

The demise of Silicon Valley Bank Before the bank got shut down by regulators, a lot of things happened very quickly: For you, special price: Manish and Ingrid caught wind that Silicon Valley Bank was in talks to sell itself. Get out while you can: Natasha M and Alex reported that VC firms started advising their portfolio companies to move money out of SVB (TC+). A bump in the road: Natasha M wrote that some SVB customers were struggling to wire funds out of the bank. In free fall: Natasha M and Alex followed up with their report that SVB's shares were tanking, as the whole mess was unfolding. Filling the void: Never ones for wasting a good crisis, startups are leaping into the breach to fill the vacuum SVB is leaving behind for the ecosystem, Natasha M and Mary Ann reported. Maybe aim better: You might imagine that someone at Silicon Valley Bank would have paused to think: "Hmm, maybe today is not the right time to declare that we're shoring up our balance sheet," Connie writes, and concludes that SVB shot itself in the foot rather spectacularly in the wake of crypto bank Silvergate's announcement that it's shutting down. Jacquelyn analyzed the Silvergate downward spiral for TC+. So, er, what now?: As SVB funds are locked up (at least until Monday, regulators say), how do you meet payroll, etc.? Alex takes a closer look at what startups are up against (TC+).

Building a lean B2B startup growth stack Selecting the right tool for the job is easy when you already know exactly how to proceed. Most B2B growth marketers don't have a blueprint to work from, however, which is why Primer CEO Keith Putnam-Delaney shared a guest post with TC+ that identifies which tools are most appropriate for early-stage, midstage and late-stage startups. "The current budget-constrained environment should be seen as a net positive by marketers," he writes. "It will force teams to think deeply about what's absolutely necessary, which tools will add efficiency (or subtract from it)." TechCrunch+ is our membership program that helps founders and startup teams get ahead of the pack. You can sign up here. Use code "DC" for a 15% discount on an annual subscription! Read More Image Credits: Jose Bernat Bacete / Getty Images (Image has been modified)

And some other news too Okay, fine, there were other things happening besides SVB going straight to hell without passing “go” today as well. Here's a smattering of things worth reading across the rest of the site… A lot of news in cybersecurity today, as Carly reports that the SEC charges Blackbaud for failing to disclose the 'full impact' of a ransomware attack; Zack writes that Telehealth startup Cerebral shared millions of patients' data with advertisers; and Zack also reports that PeopleGrove security lapse exposed users' personal information. Meanwhile, Lorenzo dove in to explore how the FBI proved a remote admin tool was actually malware. And here are some non-SVB, non-cybercrime headlines for you as well. Aren't we generous today: De-risking hardware: Haje reports that Prelaunch assembles a pre-seed round to help hardware founders pre-build the right pre-products. Say that three times fast.   More Salesforce layoffs: Ron reports that the long goodbye at Salesforce continues with more layoffs. HomePad: Romain covers that Apple could reportedly release a HomePod with a display. Not ready to fly the coup: Bird still has a long way to go to reach profitability, Rebecca and Alex report. Don't call it a comeback: Gowalla returns to see if location-based networking is ready for its mainstream moment, Darrell reports.

Read more stories on TechCrunch.com

Newest Jobs from Crunchboard Database Administrator at ALOM TECHNOLOGIES CORPORATION (Fremont, CA, USA) Senior Epic Application Analyst at Administration South (Toppenish, WA, USA) Senior Front End Web Developer (L3) at SalesLabX (Austin, TX, USA) Epic Business Intelligence Developer (Remote) at Yakima Valley Farm Workers Clinic (Toppenish, WA, USA) Data Engineer, Product & Innovation at Doctors Without Borders (NY, NY 10006, USA) See more jobs on CrunchBoard Post your tech jobs and reach millions of TechCrunch readers for only $200 per month.

View this email online in your browser Privacy Policy | Terms of Service | Unsubscribe © 2023 Yahoo. All rights reserved. 110 5th St, San Francisco, CA 94103

Bach to the future: Forthcoming Apple Music Classical app will feature 5M tracks

TechCrunch Newsletter

By Haje Jan Kamps Thursday, March 09, 2023

Hello crunchers! Christine is off for a few days, which means you're stuck with just me. Prepare for awful puns and worse jokes. Oh yes.  But before we start the pun-ishment, let's start with some good news: Devin reports that machine learning may be helping us create a COVID-19 vaccine that could help fight all current and future strains of the pandemic.    — Haje

The TechCrunch Top 3 Expanding into a new aria: Back in 2021, Apple acquired streaming company Primephonic. Today, the company is launching a new Apple Music Classical app that will offer Apple Music subscribers access to more than 5 million classical music tracks, Sarah reports.  Little Brother is watching: Zack argues that, in a world where information is power, the current generation of startups should terrify you – they know everything about you, and there's very little stopping them from using that data for good or for evil.  Discord dives into AI: Discord updates its Clyde chatbot with ChatGPT-like features, including AI-generated conversation summaries. The company says AI will be a fundamental part of its platform, Aisha reports.

Discover why the UK rivals US & China as a tech superpower Sponsored by GREAT Britain & Northern Ireland The UK has established its global reputation with a tech sector valued at $1 trillion – rivalling the US and China as a global tech powerhouse. No longer an emerging ecosystem, find out how its proven resilience in the face of uncertainty is attracting West Coast investment. Learn More

Startups and VC QuantWare, the Dutch startup that builds quantum processors for research and commercial usage, today announced that it has raised a €6 million seed round (~$6.33 million), Frederic reports. The company says it will use this new funding to support development of its 64-qubit Tenor processor.  And we have five more for you: Like a mythical phoenix from the ashes: AI chip startup Mythic rises from the ashes armed with $13 million and a new CEO, Kyle reports. Throwing a classic rager: Bach raises $9 million for its app that is designed for planning bachelorette trips and group travel experiences, Aisha reports. I see what you did there: MentorcliQ raises over $80 million to grow its employee mentoring software and services, Kyle reports. It's all going uphill fast: E-bike maker Cowboy raises new, $16 million funding round and launches AdaptivePower, Romain reports. Bringing data science back to data science: Kyle reports that Y Combinator-backed Patterns is building a platform to abstract away data science busywork.

Building a lean B2B startup growth stack Selecting the right tool for the job is easy when you already know exactly how to proceed. Most B2B growth marketers don’t have a blueprint to work from, however, which is why Primer CEO Keith Putnam-Delaney shared a guest post with TC+ that identifies which tools are most appropriate for early-stage, midstage and late-stage startups. “The current budget-constrained environment should be seen as a net positive by marketers,” he writes. “It will force teams to think deeply about what's absolutely necessary, which tools will add efficiency (or subtract from it).” Three more from the TC+ team: Raisin' hell: In this week's Pitch Deck Teardown, Haje puts MiO Marketplace's $550,000 angel deck under the microscope. We need a crash cart in here: Better.com's SPAC gets a lifeline but remains on life support, Mary Ann reports.  Operator, what's the number for 9-1-1?: It turns out burn reduction at startups is more aspiration than reality, Alex argues TechCrunch+ is our membership program that helps founders and startup teams get ahead of the pack. You can sign up here. Use code "DC" for a 15% discount on an annual subscription! Read More Image Credits: Jose Bernat Bacete / Getty Images (Image has been modified)

Big Tech Inc. India is proposing to replace its over two-decades-old IT law, as the world's second-largest internet market pushes for new guidelines to seek broader accountability from tech firms, revaluate who all gets protection from safe harbor and better oversee new technologies and serve "every" connected user in the South Asian market, Jagmeet and Manish report. From the people who brought you credit monitoring services now comes Credit Karma Net Worth, a new product to help people know, grow and protect their wealth, Christine reports. The new feature brings the 16-year-old company closer to becoming an end-to-end personal finance management platform, also offering debt, credit building and checking and savings products, Credit Karma founder and CEO Kenneth Lin said in an interview. And we have five more for you: Gone off the rails(r): UK embedded fintech Railsr was once valued at nearly $1 billion. It is currently on its way into bankruptcy protection under a new consortium owner, Ingrid reports. Running out of runway: Kirsten reports that commercial EV maker Arrival is running out of cash — and fast, while Faraday Future finds itself on track to start production of its FF 91 this month – if funds come through in time, that is.  Closing the silver gates: Rita reports that crypto-friendly bank Silvergate will wind down after the FTX blow-up. Rocket? I barely know'it: Aria is reporting that Relativity is taking a rain check on its first Terran 1 launch attempt. Casting pods and taking names: Sarah reports that Spotify is revamping its podcasting tools, including Anchor, and is partnering with Patreon.

Read more stories on TechCrunch.com

Newest Jobs from Crunchboard Senior Epic Application Analyst at Administration South (Toppenish, WA, USA) Senior Front End Web Developer (L3) at SalesLabX (Austin, TX, USA) Epic Business Intelligence Developer (Remote) at Yakima Valley Farm Workers Clinic (Toppenish, WA, USA) Data Engineer, Product & Innovation at Doctors Without Borders (NY, NY 10006, USA) Director of Infrastructure and Operations at Doctors Without Borders (NY, NY 10006, USA) See more jobs on CrunchBoard Post your tech jobs and reach millions of TechCrunch readers for only $200 per month.

View this email online in your browser Privacy Policy | Terms of Service | Unsubscribe © 2023 Yahoo. All rights reserved. 110 5th St, San Francisco, CA 94103