The sudden failure of Silicon Valley Bank not only hit the banking sector but also rattled the tech industry. The now collapsed bank was well known for providing services to venture capital-backed tech companies, driving productivity large and wide in the industry. “Who do these companies spend money on? And who was Silicon Valley Bank and Signature Bank were very intertwined with the movement of that money- where did it go? It went to web hosting. It went to online ads at Facebook (META), and Google (GOOGL), and Apple (AAPL), and Amazon (AMZN). It went to Amazon web services. It went to Microsoft (MSFT) and the other software vendors,” says Bill Smead, Smead Capital Management CIO. With Silicon Valley Bank now wiped off the board, it throws another pain point to an already challenging environment for tech start-ups. “We're shutting down this huge ecosystem of startups and IPOs, etc., and they're treating [big tech] companies like there's not going to be any fallout at their end,“ says SmeadYahoo! Finance's Julie Hyman and Jared Blikre speak with Bill Smead in a full interview here. Key video moments:0:00:11 - Startup tech companies money spend 0:01:04- SVB fallout for tech Read More...
The sudden failure of Silicon Valley Bank not only hit the banking sector but also rattled the tech industry.
The now collapsed bank was well known for providing services to venture capital-backed tech companies, driving productivity large and wide in the industry.
“Who do these companies spend money on? And who was Silicon Valley Bank and Signature Bank were very intertwined with the movement of that money- where did it go? It went to web hosting. It went to online ads at Facebook (META), and Google (GOOGL), and Apple (AAPL), and Amazon (AMZN). It went to Amazon web services. It went to Microsoft (MSFT) and the other software vendors,” says Bill Smead, Smead Capital Management CIO.
With Silicon Valley Bank now wiped off the board, it throws another pain point to an already challenging environment for tech start-ups.
“We’re shutting down this huge ecosystem of startups and IPOs, etc., and they’re treating [big tech] companies like there’s not going to be any fallout at their end,“ says Smead
Yahoo! Finance’s Julie Hyman and Jared Blikre speak with Bill Smead in a full interview here.
Key video moments:
0:00:11 – Startup tech companies money spend
0:01:04- SVB fallout for tech
Read More
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