The repercussions from Silicon Valley Bank’s collapse into receivership March 10 will be felt for a long time. The Santa Clara-based bank was a linchpin of startup funding well beyond the Bay Area entrepreneurship ecosystem: It banked, according to its own statements, around half of all U.S. venture-backed startups, counting among its clients 44% of the U.S. venture-backed technology and healthcare companies that went public in 2022.
Answers to the many questions about SVB’s risk management and other practices will come in the days and weeks ahead. In the meantime, fallout from its failure is a top concern in the startup world, even for those whose money was not imperiled. Many have speculated that SVB’s collapse — followed, in short order, by the failure of New York-based Signature Bank and the collapse of Swiss giant Credit Suisse — bears the ominous signs of an economy-crushing crash: According to a March 19 story in USA Today,
Poets&Quants reports on the world’s most successful startups, most disruptive startups, top business schools for entrepreneurship, and much more that is relevant to the ongoing crisis and the startup world. We talked to Saikat Chaudhuri, the inaugural faculty director of the dual engineering-and-business Management, Entrepreneurship, & Technology program at the University of California-Berkeley and a professor of entrepreneurship and innovation at the Haas School of Business, about what it all means, and what he is telling skittish students and alumni of the school that is responsible for a large number of MBAs working today in VC finance and as founders of some of the world’s most