Flat is the new up, down is the new flat, dead is the new down
Equity
TechCrunch
4.2 • 372 Ratings
🗓️ 10 March 2023
⏱️ 38 minutes
🔗️ Recording | iTunes | RSS
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| 0:14.6 | Hello and welcome back to Equity a podcast about the business of startups where we unpack the numbers and the new ones behind the headlines. My name is Alex and I am |
| 0:18.6 | joined today by senior tech-wish reporter Natasha Moskarinis. How are you? How's life? |
| 0:23.4 | I am doing well. I'm doing better than CVB right now. Did you see the news this morning? |
| 0:28.0 | Whoa. Spicy. So we put together the script day before, you know, as we always do, kind of the note stock, and then in the meantime, Silicon Valley Bank decided to lose half its value. |
| 0:38.0 | I missed that. Oh, Marianne. |
| 0:41.0 | What? |
| 0:42.0 | Okay, here's the TLDR from memory, so I might be missing a key component here, but Silicon |
| 0:46.8 | Valley Bank is going to issue a bunch of stock, do a private placement with General |
| 0:49.9 | Atlantic, and also issue some convertible bonds that will convert into shares later on, so |
| 0:54.0 | dilution. |
| 0:55.0 | They also divested a lot of their investments that were kind of like baked in at lower |
| 0:59.3 | interest rates back in the old days, taking a big charge from that, but then they can put all that capital in at a higher interest rate, so their net interest margin will improve. |
| 1:09.0 | And the company also said that, look, deposits are down because we expected startups to cut their |
| 1:14.3 | burn when their venture capital went down and that hasn't happened so deposits are |
| 1:18.4 | kind of flowing out. Investors have taken all of this about as well as a truck to the face and since the company |
| 1:24.8 | stock down by about 46% before we hit record. |
| 1:28.0 | Oh my God, that's shocking. |
| 1:30.0 | Oh, thank you for that explanation. |
| 1:32.1 | I don't know how I missed it. |
| 1:33.1 | Yeah, more to come, I feel like, |
| 1:35.0 | but that's your intro for you, everyone. |
| 1:37.2 | Welcome back to Equity and Us Three. |
... |
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