Silicon Valley Bank is raising $2.25 billion to stay below the balance sheet. CEO says they are solvent and not in violation of any banking ratios. If you have a loan that's not void, I think whoever acquires this thing would then acquire your loan. Don't rely on these credit facilities to pay for your runway. Most founders are not going to pay their venture debt while they wait to see what happens with new owners.
Jason reacts to Silicon Valley Bank being shut down by the FDIC and breaks down what this means for founders and VCs.
(0:00) Breaking down the SVB situation
(4:28) FDIC press release
(7:41) What Jason hopes will happen
(10:16) Defcon 1
(12:39) Thoughts on emergency funding
(15:46) How does the SVB situation affect early-stage fundraising
(26:59) SVB sells their securities
(29:10) USV email to founders
(31:06) SVB CEO addresses the situation
(33:07) Bill Ackman’s response
(34:31)Mark Suster’s response
(35:52) Audience questions
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