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☆ Brace for the US economy to crash-land as the banking turmoil creates a credit crunch, Allianz says
▼ + stars: | 2023-04-01 | by ( George Glover | ) www.businessinsider.com time to read: +3 min

The US economy is going to crash-land into a recession in the second half of 2023, according to Allianz. "Rapidly tightening credit conditions, exacerbated by the banking crisis" will fuel the downturn, Allianz said. Allianz is expecting the turmoil that's rocked the US's regional banks in recent weeks to fuel a credit crunch. The turmoil could leave banks more risk-averse and result in a pullback in lending, according to Allianz. "While credit growth has still held up, a significant decline in bank lending seems inevitable amid the collapse of monetary aggregates."

☆ First Citizens just bought Silicon Valley Bank – here's everything you need to know about the latest twist in the banking turmoil
▼ + stars: | 2023-03-27 | by ( George Glover | ) www.businessinsider.com time to read: +6 min

First Citizens Bank agreed to buy most of Silicon Valley Bank on Sunday. The Raleigh, NC-based bank has taken over 17 branches of SVB, $119 billion of its deposits and $72 billion worth of loans. Here's everything you need to know about the latest twist in the US's regional banking turmoil. First Citizens Bank has agreed to buy SVB, according to a statement released on Sunday by the Federal Deposit Insurance Corporation. It'll also receive benefits tied to First Citizens' share price, which it estimated could be worth around $500 million.

☆ Peter Thiel's reported romantic partner was found dead in Miami. Police are investigating as possible suicide.
▼ + stars: | 2023-03-24 | by ( Jack Newsham | ) www.businessinsider.com time to read: +3 min

Jeff Thomas, a 35-year-old actor and model, was found dead in Miami in a possible suicide. Miami police view the case as a possible suicide and plan to interview Thiel, The Intercept said. The Intercept reported that Thomas and Thiel had been seen at each others' homes, including at raucous parties. "And he did, and so he didn't support Trump in 2020. Thomas said he had doubts about his relationship with Thiel, the Intercept reported, and the two were not living together.

Last year it breached liquidity requirements at some of its entities after an unsubstantiated social media report sparked client exits. In the U.S., the decision to insure all bank deposits after SVB was shuttered surprised many. QUICKLY DISAPPEARSome in the banking industry play down the risks of another SVB-style downfall spurred by social media. Regulators will also need to monitor social media and develop a set of protocols to guide how they respond, according to Patricia McCoy, a law professor at Boston College. "They need to be looking for any signs of unsubstantiated rumors, panic starting to mount on social media, and they've got to do it around the clock," she said.

☆ The SVB fallout has been a wake up call for startup founders. Many are rethinking their VC relationships: 'There's certain people I wouldn't want to take money from now.'
▼ + stars: | 2023-03-21 | by ( Stephanie Palazzolo | ) www.businessinsider.com time to read: +5 min

Startup founders are wary of some VCs after their actions during the SVB crisis. Some founders were disheartened by investor advice on what to do with their money in SVB. "There's certain people I wouldn't want to take money from now," Sami Khan, cofounder and CEO of mobile games company Atlas Reality told Insider. He adds that it's difficult to blame people, both investors and founders, for the decisions they make in fast-moving situations. Without access to the dependable venture debt SVB offered, more founders may be forced to turn to dilutive venture capital for financing instead.

☆ Some VC firms have started moving money back into Silicon Valley Bank, marking the latest turn in the bank's wild week
▼ + stars: | 2023-03-17 | by ( Huileng Tan | ) www.businessinsider.com time to read: +5 min

Some VC firms have started moving their money back to Silicon Valley Bank. The bridge bank took over the deposits of the Silicon Valley Bank, a financial institution that served nearly half of all US venture-backed companies, per its website. Another group of VC firms also came out in support of Silicon Valley Bank, issuing a joint statement on Tuesday. Taneja also started a drive for VC firms to express their support for Silicon Valley Bank over the weekend. The bank run at Silicon Valley Bank triggered concerns about the financial health of smaller, regional banks in the US, spurring a crisis of confidence in the sector.

☆ Silicon Valley Bank's collapse has made the Fed's job way harder, top economist says
▼ + stars: | 2023-03-17 | by ( George Glover | ) www.businessinsider.com time to read: +3 min

The Federal Reserve will struggle to achieve a "no landing" scenario now that Silicon Valley Bank has collapsed, according to Apollo Global Management's chief economist. Torsten Sløk said he's expecting the regional banking crisis to lead to a fall in lending levels. "The slowdown that was already underway because of the Fed raising rates might come faster," he told Bloomberg. Its stock then cratered 87% in two days before it was taken over by regulators – and the share prices of other regional banks like First Republic and Western Alliance have also plunged since its collapse. The banking crisis has led to some of Wall Street's top names raising alarm bells about the Fed – which is still upping borrowing costs in a bid to tame inflation.

☆ Fintech Stripe valued at $50 bln in latest funding round
▼ + stars: | 2023-03-15 | by ( ) www.reuters.com time to read: +1 min

March 15 (Reuters) - Digital payments processor Stripe said on Wednesday it was valued at $50 billion in its latest funding round, with its valuation nearly halved from its previous fundraising, amid a tough economic environment. The company said its latest round was backed by existing investors including venture capital giants Andreessen Horowitz, Peter Thiel's Founders Fund, General Catalyst and others. New investors such as Singapore's sovereign wealth fund GIC, Goldman Sachs Asset and Wealth Management and Temasek also participated in the round, which raked in $6.5 billion in proceeds for Stripe. Stripe's capital raise constitutes what is commonly known as a down round, where the latest funding fetches a lower valuation for the company than its previous fundraise. Last year, Swedish buy now, pay later giant Klarna also had to take a down round.

☆ The collapse of Silicon Valley Bank foreshadows a bigger reckoning for the tech industry
▼ + stars: | 2023-03-15 | by ( Linette Lopez | ) www.businessinsider.com time to read: +12 min

In the days since the stunning collapse of Silicon Valley Bank, I've seen the tech world point a lot of fingers. Silicon Valley Bank imploded in part because it was a repository for the riskiest behaviors of the industry it serviced. In spite of this reality, there has been little self-reflection on the part of the industry that was so closely tied to Silicon Valley Bank. Silicon Valley Bank thrived on these trends. But to grow at the breakneck speed of its clients, Silicon Valley Bank executives had to change things in Washington.

☆ SVB-rattled banks First Republic and Western Alliance go on downgrade watch at Moody's
▼ + stars: | 2023-03-14 | by ( George Glover | ) www.businessinsider.com time to read: +3 min

Ratings agency Moody's has put First Republic and Western Alliance under review for possible downgrade. Shares in the regional banks cratered Monday as Silicon Valley Bank's collapse rattled markets. The agency's downgrade warning came after First Republic shares plunged 75% Monday, while Western Alliance plummeted 80%. The New York Stock Exchange repeatedly halted trading of both regional banks' shares on volatility concerns in the session, as worries around SVB's implosion rocked markets. Small-to-midsize banks like San Francisco's First Republic and Arizona-based Western Alliance have borne the brunt of the fallout from the SVB crisis so far.

☆ Silicon Valley Bank's collapse sent this tech founder into a 3-day panic, leading him to question: 'Am I good enough to do what I do?'
▼ + stars: | 2023-03-13 | by ( Grace Kay | ) www.businessinsider.com time to read: +5 min

Tech CEO Alexander Torrenegra detailed his experience as he watched Silicon Valley Bank collapse. Ask my wife, Tania, to wire all of our personal money out to other banks. By Friday morning, SVB stock had fallen 60%, and US regulators assumed control of the bank. Meanwhile, he said only a "portion" of his personal savings was safe as the transaction was still in a bank queue. "We may recover most of the money," Torrenegra wrote regarding his personal savings.

☆ Everything you need to know about a crazy weekend in the wake of Silicon Valley Bank's failure
▼ + stars: | 2023-03-13 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +6 min

It's all about Silicon Valley Bank going down and the knock-on effects. If you're not up to speed, here's a quick rundown on what the hell happened at Silicon Valley Bank. The US Treasury, Federal Reserve Board, and the Financial Deposit Insurance Corporation announced they would "fully protect" all depositors who had funds in Silicon Valley Bank. Regulators also made one thing clear with their announcement: "No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer." Nobel Prize-winning economist Paul Krugman has a new name for Silicon Valley Bank.

☆ Peter Thiel's Founders Fund got its cash out of Silicon Valley Bank before it was shut down, report says
▼ + stars: | 2023-03-11 | by ( Ryan Hogg | ) www.businessinsider.com time to read: +2 min

Peter Thiel's Founders Fund withdrew all its funds from Silicon Valley Bank, Bloomberg reported. A source told Bloomberg the PayPal cofounder's fund had moved to close its exposure to the failing bank after running into problems using SVB's services. The venture capital group had been engaging in a "capital call" — where it asked investment partners to send funds to invest in a company — by transferring funds to its Silicon Valley Bank account. Following the withdrawals, the fund no longer had any exposure to SVB as of Thursday morning, the unnamed source told Bloomberg. Founders Fund and SVB didn't immediately respond to requests for comment from Insider, made outside normal working hours.

☆ Silicon Valley Bank's collapse means startups and VCs face billions in losses
▼ + stars: | 2023-03-11 | by ( Ryan Hogg | ) www.businessinsider.com time to read: +4 min

SVB's startup and VC customers are staring down huge losses after its failure. A buyer is being sought for the failed bank by Monday to avoid more calamity for startups. SVB customers stare down big lossesIn a report on Friday, the ratings agency Moody's said it expected a recovery rate of 80% to 90% for uninsured depositors. While there were likely billions in deposits withdrawn prior to SVB's closure, there's still likely to be many billions left at risk. SVB's deposits soared in recent years as it became the go-to lender in the VC ecosystem.

After a bank run of $42 billion in withdrawals, Silicon Valley Bank was shut down by regulators on Friday. The founders were banking at Silicon Valley Bank and wanted to switch banks immediately after being told by their venture investors that the bank was suffering from "liquidity issues." The go-to bank of Silicon ValleySilicon Valley Bank has been a pillar of the startup of ecosystem for four decades, acting as the go-to financial institution for VC fundraising and building strong ties with founders and investors alike. This helped bolster SVB's reputation as the go-to bank of Silicon Valley in the good times, but exacerbated the crisis when it hit Thursday and Friday. "If you're given responsibility to run this iconic Silicon Valley company, you need some humility."

☆ SVB extends 2-day plunge to 86% on report it will seek a sale after failing to raise capital
▼ + stars: | 2023-03-10 | by ( Matthew Fox | ) www.businessinsider.com time to read: +4 min

The bank failed to complete its $2.3 billion capital raise and is now seeking a sale, according to CNBC. The news comes amid fears of , with several VCs advising their portfolio companies to pull money from the bank. SVB Financial saw a surge in deposits in 2020 and 2021 as valuations for speculative tech and start-up companies soared. The crash in SVB Financial on Thursday dragged down the entire banking sector, and now fears of contagion risk are starting to grow. Shares of SVB Financial were off 95% from its November 2021 record-high of $763.22, with shares trading at about $35 in pre-market trading on Friday.

At least 10 European VC funds have told their founders to pull funds out of Silicon Valley Bank. Silicon Valley Bank's woes spread overseas on Friday morning as tech investors in Europe followed their US peers and advised founders to pull their cash from the bank. The bank's shares plummeted 60% amid concerns among investors and founders about the safety of their cash. The bank has been a stalwart in the tech industry over the past 40 years, acting as a banking partner and investor for startups across the world. Castiglione said that UK funds were only "screwed" if Europe followed suit with the "US panic contagion."

☆ Explainer: What caused Silicon Valley Bank's failure?
▼ + stars: | 2023-03-10 | by ( ) www.reuters.com time to read: +2 min

Here is the sequence of events that led to Silicon Valley Bank's failure:FEDERAL RESERVE RAISES RATESThe Federal Reserve has been raising interest rates from their record-low levels since last year in its bid to fight inflation. This weighed on technology startups - the primary clients of Silicon Valley Bank - because it made their investors more risk-averse. SOME SILICON VALLEY BANK CLIENTS FACE CASH CRUNCHAs higher interest rates caused the market for initial public offerings to shut down for many startups and made private fundraising more costly, some Silicon Valley Bank clients started pulling money out to meet their liquidity needs. This culminated in Silicon Valley Bank looking for ways this week to meet its customers' withdrawals. SILICON VALLEY BANK SELLS BOND PORTFOLIO AT A LOSSTo fund the redemptions, Silicon Valley Bank sold on Wednesday a $21 billion bond portfolio consisting mostly of U.S. Treasuries.

☆ Silicon Valley Bank gave the tech industry 40 years. The tech industry couldn't give Silicon Valley Bank 40 hours.
▼ + stars: | 2023-03-10 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +5 min

Silicon Valley Bank was shut down by regulators on Friday. Venture capital firms were quick to turn their back on the bank that has served them for decades. As one VC put it to Insider's Ben Bergman, "I don't think Silicon Valley Bank is going under, but I also don't want to be the last one holding the bag." Now, the consequences have extended beyond just SVB, as startups that used the bank worry whether they'll even make payroll next week. A bank that catered to tech startups' specific wants and needs is now gone.

In this photo illustration of the TradingView stock market chart of SVB Financial Group seen displayed on a smartphone with the SVB Financial Group logo in the background. Shares of SVB Financial Group , known as Silicon Valley Bank, tumbled for a second day Friday and weighed on the whole banking sector again on fears more banks would incur heavy losses on their bond portfolios. The SPDR S&P Regional Banking ETF was off another 1.5% Friday following an 8% tumble on Thursday. Signature Bank , which does a lot of business with the crypto sector, was off 4% in premarket trading following a 12% tumble Thursday. On Thursday, the bank was worth $6.3 billion with that value set to drop even more when trading begins Friday.

☆ These are 10 of the hottest fashion brands that tech founders and investors are wearing again as people head back to the office
▼ + stars: | 2023-02-11 | by ( Lakshmi Varanasi | ) www.businessinsider.com time to read: +1 min

ArgentArgent is a work wear brand that specializes in women's suits and has dressed politicians like Kamala Harris and Nancy Pelosi. ArgentArgent specializes in women's suits. In recent years, the startup has dressed politicians like Kamala Harris and Nancy Pelosi, actresses like Amy Poehler, and even former royalty like Meghan Markle. The brand also received investment from Peter Thiel's venture capital fund, Founders Fund. Price Range: $$$ (3 out of 4) (based on approximate prices: blazers range between $300-$600; pants $200-$300)

☆ Many of tech's power-players are alumni of Peter Thiel's controversial fellowship, which pays entrepreneurs to drop out of college. See how they made their millions.
▼ + stars: | 2023-01-28 | by ( Samantha Delouya | ) www.businessinsider.com time to read: 1 min

What is the Thiel Fellowship? PayPal cofounder Peter Thiel speaks during a discussion at the National Press Club in Washington, DC, in 2011. After co-founding PayPal with Elon Musk and Max Levchin, Thiel went on to found Palantir. In fact, Thiel created a fellowship in 2011 that encourages entrepreneurs to choose the path less traveled and skip college altogether. The Thiel Fellowship, which started in 2011, "gives $100,000 to young people who want to build new things instead of sitting in a classroom," according to the fellowship's website.

☆ Giraffe360 offers real-estate brokers a camera and software to create 3D property viewings. Check out the 9-slide deck it used to raise $16 million from Peter Thiel's Founders Fund.
▼ + stars: | 2022-12-06 | by ( Riddhi Kanetkar | ) www.businessinsider.com time to read: +3 min

Giraffe360's camera-based platform allows real-estate companies to create virtual property tours. The London-based startup secured $16 million in a round led by Founders Fund. CEO Mikus Opelts saw an uptick in virtual house viewings during the pandemic, and he is optimistic that virtual viewings will be key to real-estate listings in the future. Existing investors LAUNCHub Ventures, Hoxton Ventures, HCVC (Hardware Club), and Change Ventures also participated in the round. This brings the startup's total amount raised to $22 million in equity, and $9 million in venture debt.

☆ Peter Thiel's VC fund backs TreeCard, a fintech that plants trees when you spend
▼ + stars: | 2022-11-30 | by ( Ryan Browne | ) www.cnbc.com time to read: +5 min

TreeCard offers users a spending and money management platform tied to a debit card made from wood. TreeCardTreeCard, a climate-conscious digital money app, raised $23 million from investors in a new financing round. Though based in the U.K., TreeCard chose the U.S. as its launch market. The TreeCard app includes a game that lets users visualize how many trees their activity has helped produce. TreeCard offers clients up to 3% of annualized interest on their deposits, a feature it offers through third-party vendors.

☆ Peter Thiel's VC firm just led a $40 million investment into the self-driving startup ISEE. Here's why it's betting on the little-known player as top firms struggle.
▼ + stars: | 2022-11-15 | by ( Alexa St. John | ) www.businessinsider.com time to read: +4 min

Peter Thiel's venture-capital firm, Founders Fund, just led a $40 million raise for ISEE. CEO Yibiao Zhao told Insider the startup's first focus was software for trucks in logistics yards. Peter Thiel's venture-capital firm just led a $40 million investment into a little-known self-driving-tech startup whose founders plan to help solve the supply-chain crisis. The raise is sizable considering today's economic environment has seen less funding going toward mobility, including autonomous tech. "We don't build trucks," Zhao said.

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