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In today's Daily Pitch, you'll find: - Startups that took out venture loans from SVB face risks if they stay—but also if they go.
- Our analysts break down the impact of SVB's failure and what the future of VC could look like without Silicon Valley Bank.
- Partners to neobanks like Revolut and Brex are caught in the regional bank sell-off.
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| SVB borrowers face a quandary: Wait and see, or start afresh? | |  | | (nuntarat eksawetanant/Shutterstock) | | | The future of Silicon Valley Bank's outstanding venture loans is unclear.
Startups that borrowed capital from the now-defunct bank do not have access to their undrawn credit, and it is making some businesses nervous.
A number of companies have already started the process of refinancing the loan with another lender, while others are waiting to see if the ultimate buyer of the SVB's enormous venture debt portfolio will keep the loans intact. Ramifications abound. | | | | | | | | | Venture capital without Silicon Valley Bank | | The collapse of Silicon Valley Bank couldn't have come at a worse time for startups.
Venture-backed companies were already facing a capital crunch after market volatility forced investors to slow dealmaking and set higher benchmarks for financing—and now startups' debt financing options have also taken a hit.
Other banks and lenders are stepping in, but no matter how quickly they may be able to stem the fallout, SVB's collapse is sure to irrevocably change the inner workings of the venture capital industry.
Our latest analyst note breaks down how we got to this point, the immediate impact of SVB's failure, the broader implications for venture lending and what a future venture capital market could look like without Silicon Valley Bank. | | | | | | | |
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| Credit markets roiled in SVB aftermath | |  | | (Andrii Yalanskyi / Shutterstock) | | | | Investors are selling off credit assets across the quality spectrum, from leveraged loans to high-grade bonds, our colleagues at LCD are reporting. | | | | | | | | | Revolut, Brex partners caught in regional bank sell-off | |  | Shares of Metropolitan Commercial Bank, the banking partner to Revolut's US arm, fell around 44% Monday.
(Tada Images/Shutterstock) | | | | Digital-only banks like Chime and Dave, referred to as neobanks, got widespread attention during the pandemic for their branchless services and ease of use. With the SVB crisis, their future is looking a little murky. These fintech companies partner with traditional banks—and those banks have seen their stocks plummet in the last few days. | | | | | | | | | Meet the 5 industry leaders tasked with carving up SVB | |  | | (Peshkova/Shutterstock) | | | A group of five leaders with experience across banking, venture capital, regulation and technology is tasked with cleaning up what's left of Silicon Valley Bank in the wake of its blowup.
The bank's parent, SVB Financial Group, said the special committee overseeing its restructuring will weigh "strategic alternatives" for its SVB Capital and SVB Securities arms. Here's what you need to know about each person on the committee. | | | | | | | | | 'The relief is palpable': HSBC buys SVB UK for £1 | |  | | (Anadolu Agency/Getty Images) | | | HSBC has saved UK startups and investors from likely massive losses by acquiring the UK operation of the failed Silicon Valley Bank for £1 (about $1.22), protecting customer deposits without using taxpayers' money.
This deal, arranged by the Bank of England and the UK Treasury, has been welcomed by investors. | | | | | | | | | | How the Federal Reserve's rescue package for US banks differs from 2008 bailouts. [Financial Times]
Logistics companies are laying off employees as ecommerce growth stalls. [The Wall Street Journal]
What Silicon Valley Bank's collapse could mean for California's tech-fueled economy. [Bloomberg] | | | | | |
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| | Since yesterday, the PitchBook Platform added: | | 307 Deals | 1521 People | 428 Companies | 19 Funds | | | | | | |
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The Daily Benchmark:
2012 Vintage Global Real Estate Funds | | | | | | |
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Viridos, which develops biofuel from algae, has raised a $25 million Series A led by Breakthrough Energy Ventures, with participation from United Airlines Ventures and Chevron.
Shennon Bio, a San Francisco-based immunotherapy specialist, has raised a $13 million seed round led by DCVC, with participation from Foundation Capital and AV8.
Sunhero, a Barcelona-based solar energy company, has secured €10 million in a round led by Planet A.
Aequim, a fintech specialist, has raised a seed round from Vestigo Ventures and Ridge Ventures. | | | | | |
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| PitchBook webinar: Insights into investment firm compensation trends | | How has compensation at investment firms changed in recent years? Join J. Thelander Consulting and PitchBook in exploring compensation trends at investment firms.
The event will cover exclusive insights from the Thelander-PitchBook Investment Firm Compensation Survey, including base salaries, bonuses and carried interest across a range of positions. Key topics include: - Market pay rates for roles throughout investment firms.
- Best practices for fund structure, including fund formation and carried interest.
- Compensation and hiring trends for 2023.
Register now to secure your spot. | | | | | | | |
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Inflexion has sold UK-based software development company Mobica to US-listed Cognizant for £250 million.
IK Partners has agreed to acquire infrastructure services provider Ipsum from Aliter Capital. The company provides services to UK power and water markets. | | | | | |
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| The Teacher Retirement System of Texas has divested nearly $470 million from BlackRock's Tactical Opportunities Fund and $51 million from BlackRock in order to comply with a state law that bars public investment in funds that "boycott" fossil fuel companies, The Dallas Morning News reported. | | | | | |
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| Pharmaceutical company Pfizer has agreed to buy Seattle-based Seagen, a Nasdaq-listed biotech company that develops cancer therapies, for $43 billion. | | | | | |
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