Bloomberg Law
March 24, 2023, 6:02 PM

SVB Collapse Threatens VC Industry With a $500 Billion Markdown

Diana Li

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,” ...

Learn more about Bloomberg Law or Log In to keep reading:

Learn About Bloomberg Law

AI-powered legal analytics, workflow tools and premium legal & business news.

Already a subscriber?

Log in to keep reading or access research tools.