Page 4 - Silicon Valley

Start-up Y Combinator estimates 100,000 jobs at risk due to SVB collapse

Around 10,000 small businesses that had deposits in Silicon Valley Bank will fail to make payroll in the next 30 days and around 1 lakh jobs are expected to be impacted due to the collapse, Y Combinator said in a petition to the US government on Sunday. In the petition to US Secretary of Treasury Janet Yellen, FDIC chairman Martin J Gruenberg and other senior government authorities, Y Combinator (YC) said that one-third of startups within its community used Silicon Valley Bank as their sole account and will fail to have the cash to run payroll in the next 30 days. "By that measure, we can estimate that payroll-related furlough or shutdown will impact more than 10,000 small businesses and startups. If the average small business or startup employs 10 workers, this will have an immediate effect of furlough, layoff, or shutdown, affecting over 100,000 jobs in the most vibrant sector of innovation in our economy," the petition said. The petition has been signed by more than 3,500 ...

From wine country to London, Silicon Valley Bank's failure shakes worldwide

It was called Silicon Valley Bank, but its collapse is causing shockwaves around the world. From winemakers in California to startups across the Atlantic Ocean, companies are scrambling to figure out how to manage their finances after their bank suddenly shut down Friday. The meltdown means distress not only for businesses but also for all their workers whose paychecks may get tied up in the chaos. California Gov. Gavin Newsom said Saturday that he's talking with the White House to help "stabilise the situation as quickly as possible, to protect jobs, people's livelihoods, and the entire innovation ecosystem that has served as a tent pole for our economy. U.S. customers with less than $250,000 in the bank can count on insurance provided by the Federal Deposit Insurance Corp. Regulators are trying to find a buyer for the bank in hopes customers with more than that can be made whole. That includes customers like Circle, a big player in the cryptocurrency industry. It said it has a

From Shanghai to Mumbai, tech chiefs race to contain SVB fallout

And while the direct impact to Asia is limited because of SVB's focus on Silicon Valley, the collapse is set to affect the banking industry's credibility

UK govt working on a plan for tech firms after Silicon Valley Bank collapse

US regulators shut down the bank on Friday in what is the largest failure of a US bank since 2008

Tech execs race to save startups from 'extinction' after SVB collapse

Altman, who runs one of Silicon Valley's hottest companies, bailed out some entrepreneurs from his own pocket, according to a Twitter message by his brother and one beneficiary

SVB collapse: Union Minister to meet startups to see how govt can help

As the collapse of Silicon Valley Bank (SVB) in the US left the Indian startup ecosystem worried, Union Minister of State for Electronics and IT, Rajeev Chandrasekhar

SVB's stranded deposits spread the pain from tech to Napa Valley

Silicon Valley Bank, once a darling of the California financial system, fell swiftly on Friday, a day after investors and depositors tried to make $42 billion in withdrawals

SVB depositors, investors tried to pull $42 bn on Thursday amid jitters

At the close of business on March 9, the bank had a negative cash balance of $958 million, according to an order taking possession of the bank filed Friday by California's bank regulator

Silicon Valley Bank seized by FDIC as depositors pull cash amid crisis

The Federal Deposit Insurance Corporation seized the assets of Silicon Valley Bank on Friday, marking the largest bank failure since Washington Mutual during the height of the 2008 financial crisis. The bank failed after depositors mostly technology workers and venture capital-backed companies began withdrawing their money creating a run on the bank. Silicon Valley was heavily exposed to tech industry and there is little chance of contagion in the banking sector as there was in the months leading up to the Great Recession more than a decade ago. Major banks have sufficient capital to avoid a similar situation. The FDIC ordered the closure of Silicon Valley Bank and immediately took position of all deposits at the bank Friday. The bank had USD 209 billion in assets and USD 175.4 billion in deposits as the time of failure, the FDIC said in a statement. It was unclear how much of deposits was above the USD 250,000 insurance limit at the moment. Notably, the FDIC did not announce a .

SVB rival banks benefit as startups withdraw funds to seek new home

A few banks benefited from some startups that withdrew funds from the now-failed Silicon Valley Bank

SBV with Massachusetts branches seized by FDIC as depositors pull cash

The Federal Deposit Insurance Corporation seized the assets of Silicon Valley Bank on Friday, marking the largest bank failure since Washington Mutual during the height of the 2008 financial crisis. The FDIC ordered the closure of Silicon Valley Bank and immediately took position of all deposits at the bank. The bank had USD 209 billion in assets and USD 175.4 billion in deposits as the time of failure, the FDIC said in a statement. It was unclear how much of deposits was above the USD 250,000 insurance limit at the moment. Silicon Valley was heavily exposed to tech industry and there is little chance of contagion in the banking sector as a whole, with major banks holding sufficient capital to avoid a similar situation. The financial health of Silicon Valley Bank was increasingly in question this week after the bank announced plans to raise up to USD 1.75 billion in order to strengthen its capital position amid concerns about higher interest rates and the economy.

Asia witnesses limited contagion risk from Silicon Valley Bank's woes

While bank shares in Asia and the US are trading at almost similar accounting book value-based valuations, the former is expected to boost earnings by 29% over the next 12 months

SVB crisis sends jitters through startup world: Here's what we know

Santa Clara-based SVB Financial Group announced that it sold $21 billion of securities from its portfolio. SVB Financial Group also said it was holding a $2.25 billion share sale to shore up finances

Why is everyone talking about SVB? Here's all that you need to know

Events snowballed after Silicon Valley Bank announced a share sale to shore up its finances, following a significant loss on its portfolio

Silicon Valley veteran Dan Rosensweig joins upGrad's board of directors

Rosensweig also serves on the board of Adobe and is a senior advisor to TPG Growth Ventures & Kleiner Perkins

Commerce Department to open process to avail aid for chip manufacturing

The Commerce Department is opening the application process for computer chip manufacturers to access USD 39 billion in government support to build new factories and expand production. The funding is part of the CHIPS and Science Act, which President Joe Biden signed into law last August. Grants, loans and loan guarantees are meant to revive domestic production of computer chips. The effort is designed to sharpen the US edge in military technology and manufacturing while minimising the kinds of supply disruptions that occurred in 2021, after the start of the coronavirus pandemic, when a shortage of chips shut down factory assembly lines and fuelled inflation. This is fundamentally a national security initiative, Commerce Secretary Gina Raimondo said as the application process began Tuesday. We are not writing blank checks to any company that asks. The money is meant to support private investment in new factories and can be clawed back if companies use it on stock buybacks instead. .

YouTube: From chaos to command

YouTube is now a mature product and a money machine but is no longer considered the hotbed of innovation

India ahead of America's Silicon Valley in the field of IT: Anurag Thakur

India is ahead of America's Silicon Valley in the field of IT, exemplified among other things by the fact the Covid vaccination certificate here is available digitally while the rest of the countries still have it on paper, Union minister Anurag Thakur has said. The country today is moving towards becoming a digital economy with "chaiwala to fadiwala (roadside vendors)" all doing their businesses with the help of Internet, he said. Digital transactions worth Rs 12.62 lakh crore have been recorded in the country since the BJP came to power in 2014, he said during a meeting of party functionaries at Una last night, according to a release issued on Sunday. Thakur said nine years ago when the Congress government was in power at the Center, inflation was 12 percent and "corruption" was rampant. Today when countries like the United States are struggling with an inflation rate of 8.3 percent, and India's inflation rate is 5.7 percent, he said. Under the leadership of Prime Minister Narend

Randi Zuckerberg bats for more women to participate in Web3, crypto

Zuckerberg also toured several startup and venture capital offices and met many investors and founders in Bengaluru

Meta CEO Mark Zuckerberg should focus on US midterms, not the Metaverse

Meta CEO Zuckerberg could start by doing what thousands of managers before him have done, and reconsider his tasks