I’ve been in Silicon Valley since 1978. I remember the founding of Silicon Valley Bank (SVB). I’ve been their client in several of my startups.

So there’s something a bit personal – and definitely sad – for me about their failure. It has sent ripples across the venture capital market, causing concern among investors and startups alike. SVB, a major player in the venture capital industry, had been experiencing financial difficulties for some time, but its collapse still came as a shock to many (including me).

The impact of SVB’s failure is significant. For one, it has created a ripple effect throughout the entire venture capital market, with other firms now scrambling to find alternative sources of funding. This has led to a decrease in the availability of capital, which is making it more difficult for startups to secure the financing they need to get off the ground. Worse, to the extent that the companies are unable to access their capital, it could have a ruinous effect on their operations – meeting payroll and their vendors.

In addition to the impact on funding availability, the failure of SVB has also led to a loss of trust in the venture capital industry as a whole. Many investors and startups had relied on SVB’s reputation as a trustworthy and reliable institution. With that reputation now in tatters, it is likely that many will be more cautious when it comes to investing in venture capital firms in the future.

SVB’s failure has caused many startups to reassess their own financial strategies. With funding becoming harder to come by, many companies are now looking to diversify their sources of capital and reduce their reliance on venture capital firms. This may mean turning to alternative forms of financing, such as crowdfunding, or seeking out partnerships with larger companies.

Overall, the impact of SVB’s failure is likely to be felt for some time to come. It has already led to a loss of trust in the venture capital industry and made it more difficult for startups to secure the financing they need. It will almost certainly lead to the failure of a meaningful number of VC firms themselves. However, let’s remember that the venture capital market is highly resilient, and I believe there are likely to be other firms that step in to fill the void left by SVB’s collapse. In the end, it is the startups and entrepreneurs who will need to adapt to the changing landscape and find new ways to secure the funding they need to succeed.

We at Advantary advise our clients on fundraising strategies. Please contact me at smk@advantary.co if you’d like to discuss you current needs.