After the banking debacle, Silicon Valley is counting on its image
Some sought to combat the anti-tech perception simmering on social media. Over the weekend, Garry Tan, the president of startup incubator Y Combinator, sent a message to hundreds of founders and entrepreneurs, urging them to post “tweetstorms” to humanize the impact the collapse of Silicon Valley is having bank on them had.
The idea was to show how innovation could be stifled if depositors didn’t get sane, with the added benefit that more of this type of narrative would discourage some of the more outspoken “tech bro” venture capitalists and founders from taking the face of the Silicon Valley to become situation.
“By coming together as a community and showing our strength, we can impact the future of startups,” Mr. Tan wrote in the letter, seen by the New York Times. He later published an online petition to the government with a call to “Save Innovation in America’s Economy,” signed by more than 5,000 CEOs representing nearly half a million workers.
More than 600 venture capital firms also joined forces to sign a on Saturday and Sunday opinion, organized by the General Catalyst company, which expresses its support for the Silicon Valley Bank and its disappointment at its failure. They pledged to encourage their portfolio companies to resume banking with Silicon Valley Bank if the bank were sold.
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Many tech startups banked with Silicon Valley Bank because it specialized in lending money to risky startups, something few banks offered. According to the bank, it has provided banking services to nearly half of all venture capitalized technology and life science companies in the United States and has also banked more than 2,500 venture capital firms.
That gave him an outsized footprint in the startup industry. Andreessen Horowitz, one of the top venture firms, said in a letter to investors available to The Times over the weekend that about half of the startups it had invested in had banking ties with Silicon Valley Bank. A spokeswoman for the company declined to comment.
Mr Fonseka, the venture capital investor, predicted the weekend’s events would bring about a lasting change in the way start-ups managed their money. Some tech companies are even considering developing a tech product that will help companies manage money across multiple bank accounts, he said.
https://www.nytimes.com/2023/03/13/technology/silicon-valley-image.html After the banking debacle, Silicon Valley is counting on its image