Square Peg's Bassat on SVB's Impact on Venture Capital

The transcript discusses the impact of the Silicon Valley Bank (SVB) collapse on startups, highlighting the limited exposure of the speaker's portfolio. It covers the role of the Fed and Treasury in preventing a crisis, the importance of risk management, and the need for banking transparency. The discussion also touches on the future of tech mergers and acquisitions and fundraising, suggesting a return to business as usual despite the challenges.

What was the impact of the Fed and Treasury's actions on the portfolio companies?

• They caused a long-term crisis.

• They helped prevent a crisis.

• They had no impact.

• They worsened the situation.

What role did Silicon Valley Bank play in the startup ecosystem?

• It was a minor player.

• It was primarily a tech company.

• It played a unique role in banking and services.

• It was only involved in real estate.

What was the main concern if the Fed and Treasury had not acted decisively?

• Banks would have become more stable.

• Startups would face existential crises.

• There would have been no impact.

• Startups would have thrived.

What is a key lesson learned from the SVB collapse?

• Only large banks are risky.

• Transparency and risk mitigation are crucial.

• Risk mitigation is unnecessary.

• Banks are always safe.

How should companies manage their deposits according to the lessons learned?

• Keep all deposits in one bank.

• Spread deposits across multiple banks.

• Avoid using banks altogether.

• Only use international banks.

What is the expected impact on tech M&A and fundraising after the SVB collapse?

• Permanent decline in the market.

• Complete halt in activities.

• Gradual return to normalcy.

• Immediate increase in activities.

How did the market conditions in 2023 compare to those in 2019?

• They were significantly worse.

• They were much better.

• They were completely different.

• They were similar.