After bank failures, Silicon Valley reexamines its image
Some are trying to combat the anti-tech perceptions popping up on social media. Over the weekend, Garry Tan, president of startup incubator Y Combinator, sent a message to hundreds of founders and entrepreneurs telling them to start a “tweetstorm” to humanize how the Silicon Valley bank collapse affected them.
The idea is to show how innovation can be stifled if depositors are incomplete, with the added bonus that more of these narratives will prevent some of the more outspoken “tech bro” venture capitalists and founders from becoming Silicon Valley’s Spokesperson situation.
“By coming together as a community and demonstrating our power, we can have an impact on the future of startups,” Tan wrote in the letter, which was obtained by The New York Times.he later published an online petition The government asked them to “save innovation in the American economy,” a document signed by more than 5,000 chief executives representing nearly half a million employees.
More than 600 venture capital firms also joined forces on Saturday and Sunday to sign a statement, organized by General Catalyst, expressed support for Silicon Valley Bank and disappointment at its failure. They promised that if SVB were sold, they would encourage their portfolio companies to resume banking with SVB.
Things we consider before using anonymous sources. Does the source know this information? What motives do they tell us? Have they proven reliable in the past? Can we confirm this information? Even after addressing these concerns, The Times used anonymous sources as a last resort. Reporters and at least one editor knew the identities of the sources.
Many tech start-ups are banking with Silicon Valley Bank because it specializes in lending to risky young companies, a service that few banks offer. By its own admission, the bank banks nearly half of the venture-backed technology and life sciences companies in the U.S., and is also the bank for more than 2,500 venture-backed firms.
This gives it a place in the startup industry. In a weekend letter to investors seen by The Times, Andreessen Horowitz, one of the highest-profile venture capital firms, said about half of the start-ups it invests in are linked to Silicon Valley Bank has a banking relationship. A company spokesman declined to comment.
Mr Fonseca, a venture capital investor, predicts the weekend’s event will revolutionize the way start-ups manage their money. Some technology companies are even considering developing a tech product that would help businesses manage money across multiple bank accounts, he said.