Halogen Ventures founding partner Jesse Draper was in the midst of planning a private dinner party with Silicon Valley Bank when the financial institution failed on March 9.
Draper’s event, at which she and one of her SVB contacts planned to bring together two dozen first-time female venture investors, was exactly the sort of party that lubricated venture capital’s startup-creation machine, and the kind the bank was famous for helping arrange. SVB served not only as a place for startups and VC firms to keep their money, but also as a creditor, investor, customer, personal financial adviser, recruiter and matchmaker for the people and companies that make up the startup industry. Although signs of trouble had been mounting for a year, SVB’s sudden failure felt like an acute trauma to industry insiders. But maybe the party that the entire industry had been having since Draper was a teenager was also finally waning. “Someone just threw a bomb into tech,” she says. “What are we supposed to do now?”
This story is from the April 03, 2023 edition of Bloomberg Businessweek US.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the April 03, 2023 edition of Bloomberg Businessweek US.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
Instagram's Founders Say It's Time for a New Social App
The rise of AI and the fall of Twitter could create opportunities for upstarts
Running in Circles
A subscription running shoe program aims to fight footwear waste
What I Learned Working at a Hawaiien Mega-Resort
Nine wild secrets from the staff at Turtle Bay, who have to manage everyone from haughty honeymooners to go-go-dancing golfers.
How Noma Will Blossom In Kyoto
The best restaurant in the world just began its second pop-up in Japan. Here's what's cooking
The Last-Mover Problem
A startup called Sennder is trying to bring an extremely tech-resistant industry into the age of apps
Tick Tock, TikTok
The US thinks the Chinese-owned social media app is a major national security risk. TikTok is running out of ways to avoid a ban
Cleaner Clothing Dye, Made From Bacteria
A UK company produces colors with less water than conventional methods and no toxic chemicals
Pumping Heat in Hamburg
The German port city plans to store hot water underground and bring it up to heat homes in the winter
Sustainability: Calamari's Climate Edge
Squid's ability to flourish in warmer waters makes it fitting for a diet for the changing environment
New Money, New Problems
In Naples, an influx of wealthy is displacing out-of-towners lower-income workers