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Silicon Valley Bank
Follow our coverage of Silicon Valley Bank's Failure

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Pro Weekly
Pro Weekly: Insights From The Information 50 Database
March 24, 2023
The Briefing
Let’s Talk About Jack Dorsey
March 23, 2023
Creator Economy
TikTok CEO Keeps His Cool, But Scores Few Points
March 23, 2023
Dealmaker
The Coming Wave of Cram Downs
March 23, 2023
Crypto Global
The Best and Worst Time for Coinbase
March 22, 2023
The Weekend
The Best of Times (for AI), the Worst of Times (for Your Bank)
March 18, 2023

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Briefings

Amazon Starts Latest Round of 9,000 Layoffs
March 24, 2023
Nasdaq to Launch Crypto Custody Service By End of June
March 24, 2023
Taking Aim at OpenAI, Databricks Releases ‘Dolly’ Language Model
March 24, 2023
UK Says Microsoft’s Activision Bid Won’t Harm Console Market, Dealing Blow to Sony
March 24, 2023
Heated Reaction in China to TikTok CEO’s U.S. Testimony
March 23, 2023
Utah Passes Bills to Restrict Minors’ Social Media Use
March 23, 2023
U.S. Prosecutors Charge Do Kwon with Fraud after Arrest in Montenegro
March 23, 2023
Mysten Labs to Buy Back Investment From FTX for $96 Million
March 23, 2023
Slack’s Sales Chief Departing Salesforce Next Month
March 23, 2023
Apple to Spend $1 Billion Per Year on Movies to Release in Theaters
March 23, 2023
TikTok CEO Stresses App’s Separation from China
March 23, 2023
Block Shares Crash 20% After Short Seller Alleges Fraud
March 23, 2023
Virgin Orbit Nears $200 Million Funding Deal
March 22, 2023

Subscriber comments

Amber Hayes

on LinkedIn Faces Growing Complaints From Recruiters Over Rising Prices

Amber Hayes VP of recruiting, HR Operations and Mobility - Unity Technologies Totally agree. Their product has not improved, and prices continue to rise, significantly. We have partnered with seekout as the continued cost increases with LinkedIn are not sustainable in the long term.

Anshu Sharma

on Twitter Cuts Salesforce Bill 75% as More Buyers Scrutinize Software Spending

The $400 per year sounds like a lot for Slack. But when your employees each fully loaded cost is close to $250,000 - it’s a rounding error, especially if it makes them even 1% more productive.

Abed Agha

on What Creators on Meta Should Learn from News Publishers on Meta

I think the situation with publishers and creators differs for the following reasons: Creators are the users themselves and as the creator economy grows, so will the number of creators. I suspect the line that draws a distinction between a "creator" and a "user" will get very blurry in the future. In this context, ignoring creator demands = ignoring users; and this will inevitably lead to the decline of such platforms who do this. Equitability between platforms and creators is an important pillar to the advertising-led creator economy and so far YouTube is the only platform that has done it right and baked it in their business model. Meta already scaled their business model outside of creators, so sharing revenue with creators will cannibalize their existing revenue. TikTok should do it while they are still early in their monetization journey.

Arthur P. Johnson

Arthur P. Johnson

on At Patreon, Mismanagement Thwarts a Pandemic-Era Star

Excellent reporting by Paris Martineau, who plainly did not leave a rock unturned. This is such a sad state of affairs, as quite a number of my most cherished creators rely almost entirely on their Patreon-using supporters (including me!) to put food on their respective tables. I personally plan to investigate funding alternatives for each creator I support.

Joy Randels

on Okta Chief Revenue Officer Departs Amid Sales Shakeup

One of the biggest obstacles to overcome in an acquisition is integration. Whether it is technology, people, or processes, it is both an art and science to make an acquisition fully successful.

Syed Ashrafulla

Syed Ashrafulla

on The Best Little Unicorn in Texas: Jasper Was Winning the AI Race—Then ChatGPT Blew Up the Whole Game

Great story on how non-technical founders found a business fit for a platform technology. I don't think OpenAI can hold all (or many) of the verticals while keeping the horizontal ahead, so it makes sense that companies like Jasper will rise with the tide of conversational AI rather than drown in that tide. In the end, we as consumers need the engineering AND the product.

Claire Enders

on Musk May Have Found a Hardcore Leader for Twitter

It’s surprising that any leader gets a kick out of bilking employees, suppliers and almost everyone they might have a legal contract with. Simply because of Musk’s misjudgement on acquiring the company for $44 billion on a whim. Nothing like this Twitter situation would be allowed in the EU.

Latest Articles

A TikTok advertisement at Union Station in Washington, D.C., on Wednesday, March 22, 2023. Photo by Bloomberg.

Exclusive

TikTok Shifts Into Damage Control Mode

By Kaya Yurieff · March 24, 2023 3:27 PM PDT

TikTok and some companies that work with the popular app have shifted into damage control mode after a rancorous Congressional grilling of TikTok CEO Shou Zi Chew failed to allay lawmakers’ concerns that its...

Image: A TikTok advertisement at Union Station in Washington, D.C., on Wednesday, March 22, 2023. Photo by Bloomberg.

Breaking Stories

Silicon Valley Bank
Follow our coverage of Silicon Valley Bank's Failure

Art by Clark Miller.

startups economy

SVB Is Dead. Long Live SVB.

By Jason Pontin · March 18, 2023 9:00 AM PDT · 3 comments

We all know how it began. It started on March 9, when the run on Silicon Valley Bank made the innovation economy totter and threatened a global financial crisis. It continued on March 10, when SVB failed and it became clear that anyone who hadn’t gotten their money out yet was stuck, facing payroll in just five days with no clear way to... We all know how it began. It started on March 9, when the run on Silicon Valley Bank made the...

A sign outside TikTok's offices in Culver City, Calif. this week. Photo by Getty.

TikTok Tries to Allay Advertisers’ Concerns as U.S. Ban Threat Looms

By Kaya Yurieff and Sylvia Varnham O'Regan · March 17, 2023 12:21 PM PDT

No matter what happens in Washington, TikTok needs to keep advertisers spending money on the app. The latest threat of a ban, made recently by the Biden administration, has prompted marketers to consider their alternatives, ad executives say. TikTok has been taking steps to reassure the ad industry, including convening a closed-door meeting with... No matter what happens in Washington, TikTok needs to keep advertisers spending money on the app....

Cover art and portraits by Clark Miller

The Instant Oral History of the Silicon Valley Bank Collapse

By Abram Brown, Annie Goldsmith, Margaux MacColl, Arielle Pardes, Nick Wingfield and Kaya Yurieff · March 17, 2023 11:26 AM PDT · 2 comments

On a cosmic level, the collapse of Silicon Valley Bank was a mere blip. The murmurs about trouble began last Wednesday, the panic spread via group texts and Twitter threads on Thursday, the bank went under on Friday, the government got its act together on Saturday, and on Sunday every current and former customer of SVB could breathe a cautious... On a cosmic level, the collapse of Silicon Valley Bank was a mere blip. The murmurs about trouble...

Sarah Nagy gives a demo of her startup, Seek.ai, at an AI event at the San Francisco Wine Society in January. Photography by Laura Morton

Boom Times in San Francisco’s AI Underground

By Arielle Pardes · March 17, 2023 9:02 AM PDT · 7 comments

Sarah Nagy gives a demo of her startup, Seek.ai, at an AI event at the San Francisco Wine Society in January. Photography by Laura Morton

Boom Times in San Francisco’s AI Underground

By Arielle Pardes · March 17, 2023 9:02 AM PDT · 7 comments

Not even a banking crisis could chill the fever sweeping San Francisco. Last Wednesday, as the tech industry recoiled from the collapse of Silicon Valley Bank, a party was scheduled at the offices of Maverick Ventures in an old army hospital in the Presidio. The venture capital firm’s partners were hosting the latest LangChain... Not even a banking crisis could chill the fever sweeping San Francisco. Last Wednesday, as the...

The People With Power at Binance and Binance.US

By Aidan Ryan · March 17, 2023 6:03 AM PDT

After a series of crypto collapses over the past year, Binance has cemented its position as the industry’s powerhouse. But the world’s biggest crypto exchange by volume had been under mounting scrutiny from regulators even before the implosion of its top rival, FTX. Media reports over the past year have also revealed... After a series of crypto collapses over the past year, Binance has cemented its position as the...

Photo by AP.

TikTok Sale Likely to Be Rejected by China

By Juro Osawa, Sylvia Varnham O'Regan, Kaya Yurieff and Shai Oster · March 16, 2023 2:55 PM PDT · 10 comments

The Chinese government is likely to oppose any attempt by the Biden administration to force TikTok’s Chinese shareholders to sell their stakes in the hugely popular app, said China-based lawyers and investors, setting the stage for a protracted standoff between Beijing and Washington over the future of TikTok. “Why would China agree?... The Chinese government is likely to oppose any attempt by the Biden administration to force...

Stripe CEO Patrick Collison. Photo by Getty.

No More Four-Year Lockups: Stripe’s Sprint to a $7 Billion Fundraising Haul

By Maria Heeter and Cory Weinberg · March 16, 2023 2:31 PM PDT · 2 comments

Two years ago, when Stripe raised money at a valuation of $95 billion, the payments giant had such an upper hand over investors that it could institute some highly unusual conditions in its fundraising round. Investors had to agree to hold onto their shares for four years after the company went public. And Stripe had the option to sell them even... Two years ago, when Stripe raised money at a valuation of $95 billion, the payments giant had...

A First Republic Bank in Los Angeles. Photo by Bloomberg.

First Republic CEO Told Regulators Earlier This Year His Bank Didn’t Need More Rules

By Michael Roddan and Lauren Tara LaCapra · March 16, 2023 2:02 PM PDT

A First Republic Bank in Los Angeles. Photo by Bloomberg.

First Republic CEO Told Regulators Earlier This Year His Bank Didn’t Need More Rules

By Michael Roddan and Lauren Tara LaCapra · March 16, 2023 2:02 PM PDT

On Thursday, First Republic Bank CEO Mike Roffler hashed out a $30 billion rescue plan for his bank with the biggest institutions on Wall Street at the urging of the federal government. But less than two months ago, he was pleading with the Federal Reserve and the Federal Deposit Insurance Corp. to exclude his San Francisco-based lender from... On Thursday, First Republic Bank CEO Mike Roffler hashed out a $30 billion rescue plan for his...

The Information's Jessica Lessin, appearing live on CNN on Wednesday, March 15. Composite art by Clark Miller

Notes from a Meltdown

Five Years in Five Days: How I Panicked, Pivoted and Ultimately Survived as My Bank Melted Down

By Jessica E. Lessin · March 16, 2023 12:42 PM PDT · 23 comments

It started with a text from a tech investor last Wednesday afternoon. Shares in Silicon Valley Bank were tanking following the announcement of an emergency stock sale, the person told me. The bank that I had used to establish The Information 10 years ago, and that I had stuck with since, was in danger of spontaneously combusting. The investor... It started with a text from a tech investor last Wednesday afternoon. Shares in Silicon Valley...

Subscriber Survey

The Information Readers Turn Bearish

By Scott Thurm · March 16, 2023 9:30 AM PDT · 1 comment

What a difference a month makes. In early February readers of The Information were optimistic about 2023, with nearly three times as many respondents saying they expected conditions for tech companies to improve over the next six months as expected conditions to worsen. Now that sentiment has reversed. By more than 2-to-1, respondents to our... What a difference a month makes. In early February readers of The Information were optimistic...

Art by Clark Miller.

Robots Don’t Make Art

By Ryan Broderick · March 16, 2023 9:00 AM PDT · 6 comments

One of the central tensions of the past 30 years when it comes to art and culture has been the need to balance the unbridled creativity afforded us by the internet with the ability of our legal institutions to make sense of who owns it. Since the artificial intelligence revolution began in earnest last summer with the launch of OpenAI’s... One of the central tensions of the past 30 years when it comes to art and culture has been the...

Google Cloud CEO Thomas Kurian in 2019. Photo by Bloomberg

In Search of Profits, Google Cloud Shifts Focus to Midsize Customers

By Kevin McLaughlin · March 16, 2023 6:00 AM PDT

Google Cloud CEO Thomas Kurian in 2019. Photo by Bloomberg

In Search of Profits, Google Cloud Shifts Focus to Midsize Customers

By Kevin McLaughlin · March 16, 2023 6:00 AM PDT

During Thomas Kurian’s nearly five years at the helm of Google’s cloud-server business, the unit has raised its profile by inking long-term agreements with companies such as Deutsche Bank, Dun & Bradstreet Holdings and Mayo Clinic. But Google Cloud has struggled to get those companies to quickly increase their spending on cloud... During Thomas Kurian’s nearly five years at the helm of Google’s cloud-server...

A pedestrian passes a Silicon Valley Bank branch in San Francisco, on Monday, March 13, 2023. Photo by AP.

venture capital startups

SVB’s $9.5 Billion Venture Unit Included Large Investments in Andreessen, Sequoia, Documents Show

By Kate Clark · March 15, 2023 5:29 PM PDT · 4 comments

As potential buyers circle the remnants of Silicon Valley Bank and its affiliates, one asset could be particularly appealing: the company’s venture capital arm. The unit manages $9.5 billion with stakes in many of Silicon Valley's top-tier venture firms, including Sequoia Capital, giving it indirect access to some of the tech... As potential buyers circle the remnants of Silicon Valley Bank and its affiliates, one asset...

Shou Zi Chew, chief executive officer of TikTok, in November 2022. Photo by Bloomberg

U.S. Officials Demand ByteDance Sell TikTok

By Juro Osawa · March 15, 2023 4:23 PM PDT · 5 comments

The Biden administration in recent days demanded that Chinese internet giant ByteDance sell TikTok despite the company’s yearslong effort to avoid such a decision, according to a person briefed about the situation. U.S. officials told TikTok to rid itself of Chinese ownership and implied the app could face an outright ban if ByteDance... The Biden administration in recent days demanded that Chinese internet giant ByteDance sell...

Art by Clark Miller.

Microsoft Rations Access to AI Hardware for Internal Teams

By Aaron Holmes and Kevin McLaughlin · March 15, 2023 1:32 PM PDT · 4 comments

Microsoft is poised to announce a suite of Office 365 tools powered by GPT-4, the powerful new artificial intelligence software made by OpenAI. But now Microsoft is facing an internal shortage of the server hardware needed to run the AI, according to three current Microsoft employees. That has forced the company to ration access to the hardware... Microsoft is poised to announce a suite of Office 365 tools powered by GPT-4, the powerful new...

Two Silicon Valley Bank customers enter a branch in Palo Alto, Calif., on Monday. Photo by AP.

Government Will Likely Only Sell Silicon Valley Bank to Another Bank, Sources Say

By Michael Roddan, Erin Woo and Lauren Tara LaCapra · March 15, 2023 11:18 AM PDT · 9 comments

Two Silicon Valley Bank customers enter a branch in Palo Alto, Calif., on Monday. Photo by AP.

Government Will Likely Only Sell Silicon Valley Bank to Another Bank, Sources Say

By Michael Roddan, Erin Woo and Lauren Tara LaCapra · March 15, 2023 11:18 AM PDT · 9 comments

The U.S. government will likely only sell Silicon Valley Bank to another bank, people familiar with the matter said, essentially ruling out the private equity firms and venture capitalists that had been exploring making a bid. The Federal Deposit Insurance Corp. took over SVB, which failed Friday, and is in the process of selling it. A person... The U.S. government will likely only sell Silicon Valley Bank to another bank, people familiar...

A recent New York Knicks/Los Angeles Lakers game. Photo by Adam Pantozzi/NBAE via Getty Images.

NBA Wants Billions More in Sports Deals: Media and Tech Firms Are Resistant

By Sahil Patel · March 15, 2023 6:00 AM PDT · 1 comment

The NBA is one of the most popular sports leagues in the world. It also has high hopes for squeezing far more money out of media outlets in negotiations for future TV broadcast rights, in part because tech giants including Amazon and Google have told the league of their interest in streaming the games. According to two people who have recently... The NBA is one of the most popular sports leagues in the world. It also has high hopes for...

Jamie Dimon, chief executive officer of JPMorgan Chase. Photo by Bloomberg.

markets startups

How JPMorgan Maneuvered During the Fall of Silicon Valley Bank

By Lauren Tara LaCapra and Michael Roddan · March 14, 2023 3:10 PM PDT

When Silicon Valley Bank was crumbling last week, eyes turned to the biggest lender in the country—the bank that had stepped in to save failing competitors during the financial crisis in 2008, whose CEO has been called “America’s banker” and whose views and decisions influence the corporate world. But JPMorgan Chase was... When Silicon Valley Bank was crumbling last week, eyes turned to the biggest lender in the...

Marc Rowan, chief executive officer of Apollo Global Management LLC. Photo by Bloomberg.

Apollo Asks VCs to Back Its Bid For Silicon Valley Bank Assets

By Erin Woo and Amir Efrati · March 14, 2023 12:44 PM PDT · 2 comments

Private equity giant Apollo Global Management has asked major venture capital firms to help finance a bid for the assets of Silicon Valley Bank, according to a person with knowledge of the discussion. Earlier, The Information reported that several firms, including General Catalyst, Andreessen Horowitz and Redpoint Ventures, had discussed the... Private equity giant Apollo Global Management has asked major venture capital firms to help...

Tim Mayopoulous. Photo by Getty.

New SVB CEO: Startup Debt Facilities ‘Will be Honored,’ Says ‘A Lot of People’ Interested in Bank Assets

By Amir Efrati · March 14, 2023 11:34 AM PDT · 9 comments

Tim Mayopoulous. Photo by Getty.

New SVB CEO: Startup Debt Facilities ‘Will be Honored,’ Says ‘A Lot of People’ Interested in Bank Assets

By Amir Efrati · March 14, 2023 11:34 AM PDT · 9 comments

The government-appointed CEO of the Silicon Valley ‘bridge bank’ asked venture capitalists on Tuesday morning to keep deposits at the bank and return them to the institution. He also said clients with existing debt facilities will be honored. “I’m not asking you to do this as an act of charity,” said Tim Mayopoulos,... The government-appointed CEO of the Silicon Valley ‘bridge bank’ asked venture...