SVB Collapse Threatens VC Industry With a $500 Billion Markdown

The $2 trillion venture capital industry could see portfolio markdowns of 25% to 30% — a “haircut” of possibly $500 billion — following the Silicon Valley Bank debacle, according to Bloomberg Intelligence.

“After the failure of SVB, we expect greater valuation scrutiny and disclosure, especially as a large chunk of ‘fiduciary’ capital from pension funds has flowed into these markets — and unlike endowments and family offices, there are no avenues to extend and pretend,” Bloomberg Intelligence analyst Gaurav Patankar writes in a note Friday.

Watch: Carson Block says SVB creditors shouldn’t have taken haircuts.

Markets: The Close.”

Some VC and private equity firms are turning toward strategies to “extend” and “pretend,” ...