The Briefing by Martin Peers, Jessica Lessin and the team at The Information

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The Briefing

By Martin Peers, Jessica Lessin and the team at The Information

Get smarter about the day’s news in tech, media and finance by following Silicon Valley’s most-read executive newsletter.

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Recent Editions

Signage outside of the Meta Store in Burlingame, Calif. Photo by Bloomberg.

Making Sense of Mark Zuckerberg’s Manifesto

By Jessica E. Lessin · Mar 14, 2023 5:00pm PDT · 5 comments

As if the technology industry hadn’t spit out enough news lately, today brought another big batch of headlines. Once again techies are closely tracking the arrival of OpenAI’s latest conversational artificial intelligence model, dubbed GPT-4. And then there are the sweeping layoffs at Meta Platforms. News of the layoffs, expected to total a... As if the technology industry hadn’t spit out enough news lately, today brought another big batch...

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

How JPMorgan Maneuvered During the Fall of Silicon Valley Bank

By Lauren Tara LaCapra and Michael Roddan · Mar 14, 2023 3:10pm 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...

Porsche executives discussed digital collectibles at its SXSW event. Photo via Porsche

Creator Economy

At SXSW, Artificial Intelligence Fills Crypto Void

By Kaya Yurieff · Mar 14, 2023 3:00pm PDT · 1 comment

A big shift at South by Southwest this year is the buzz around artificial intelligence and the relative absence of crypto events after a bonanza last year. Last year, crypto was hard to escape at the tech and arts festival: SXSW attendees sipped on mimosas at a brunch for women in Web3 or waited in long lines to see an interactive event... A big shift at South by Southwest this year is the buzz around artificial intelligence and 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 · Mar 14, 2023 12:44pm PDT · 2 comments

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 · Mar 14, 2023 12:44pm 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 · Mar 14, 2023 11:34am 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...

Fetch's booth at the Groceryshop 2022 Conference in Las Vegas. Photo by Fetch.

SoftBank-Backed Fetch Rewards Cuts Staff Amid Shopping Slowdown

By Theo Wayt and Ann Gehan · Mar 14, 2023 9:32am PDT

SoftBank-backed shopper rewards startup Fetch Rewards laid off around 100 employees on Monday, making up at least 10% of its workforce, the company confirmed to The Information. Fetch had pitched itself as a way for sellers to battle rising digital marketing costs following Apple’s privacy restrictions. But the Madison, Wis.-based company... SoftBank-backed shopper rewards startup Fetch Rewards laid off around 100 employees on Monday,...

FDIC member Dedra Dorn (center left) speaks with individuals in line outside Silicon Valley Bank's headquarters in Santa Clara, Calif., on Monday, March 13, 2023. Photo by AP.

Where the Venture Community Goes From Here

By Hemant Taneja · Mar 14, 2023 9:00am PDT · 19 comments

March 9, 2023, will be remembered as a sad day in Silicon Valley’s history. We have been through crises before—the Japan Inc. fears of the 1980s; the dot-com bubble during which my firm, General Catalyst, was founded; the global financial crisis of the late 2000s; the Covid-19 crisis we’re still getting over. But... March 9, 2023, will be remembered as a sad day in Silicon Valley’s history. We have been...

Customers wait in line outside a Silicon Valley Bank branch in Wellesley, Mass., on Monday. Photo by Bloomberg.

SVB’s Chinese Customers Face Logjams In Moving Money

By Juro Osawa and Shai Oster · Mar 14, 2023 7:48am PDT · 1 comment

Customers wait in line outside a Silicon Valley Bank branch in Wellesley, Mass., on Monday. Photo by Bloomberg.

SVB’s Chinese Customers Face Logjams In Moving Money

By Juro Osawa and Shai Oster · Mar 14, 2023 7:48am PDT · 1 comment

As customers of the failed Silicon Valley Bank rush to open new accounts at other banks, SVB’s China-based customers are in a bind. They face far more obstacles than their American counterparts when it comes to setting up new U.S. bank accounts, making an immediate switch from SVB much harder. That’s in part because Chinese tech... As customers of the failed Silicon Valley Bank rush to open new accounts at other banks,...

Q&A

Allbirds Takes Cues From Airbnb to Battle Sales Slump

By Ann Gehan · Mar 14, 2023 6:00am PDT · 3 comments

Allbirds, the sneaker brand that gained a cult following in Silicon Valley for its eco-friendly, slipperlike shoes, is at a make-or-break moment. The company is trying to reel its original fans back in after a lackluster push into more-competitive categories like shoes for serious runners and apparel such as leggings over the past two years. But... Allbirds, the sneaker brand that gained a cult following in Silicon Valley for its eco-friendly,...

Electric vehicle and battery production may be speeded up by applying the lessons of semiconductor manufacturing. Photo: VCG/Getty

The Electric: The Chip Industry’s Production Hell Has Lessons for EVs

By Steve LeVine · Mar 14, 2023 4:51am PDT

The auto industry, beset by painful cost overruns and delays in its rollout of electric vehicles, is confronting some of the same problems that semiconductor companies had to overcome decades ago, industry executives say.On Live Chat With The Electric last week, Michael Yu, vice president of the advanced solution group of semiconductor analytics... The auto industry, beset by painful cost overruns and delays in its rollout of electric vehicles,...

A Wellesley, Mass., police officer glances at his watch as customers and bystanders form a line outside a Silicon Valley Bank branch location, Monday, March 13, 2023, while waiting for the branch to open, in Wellesley, Mass. Photo by AP.

There’s No Perfect Place for Silicon Valley to Park its Cash

By Martin Peers · Mar 13, 2023 5:00pm PDT · 1 comment

Finally, there’s an advantage to being broke—you never have to worry about where to put your cash! The failure of three banks in the past few days, and today’s sell-off in the stocks of First Republic and other banks, has put the spotlight on the inherent risk in bank accounts. Of course, putting your money into bonds or stocks is much riskier... Finally, there’s an advantage to being broke—you never have to worry about where to put your...

Photo by Bloomberg

Private Equity Giant Apollo Talks to VC Firms About SVB Bid

By Erin Woo and Amir Efrati · Mar 13, 2023 4:36pm PDT · 3 comments

Photo by Bloomberg

Private Equity Giant Apollo Talks to VC Firms About SVB Bid

By Erin Woo and Amir Efrati · Mar 13, 2023 4:36pm PDT · 3 comments

Private equity firm Apollo Management has been talking to General Catalyst, Andreessen Horowitz, Redpoint Ventures and other venture capitalists as the PE firm considers bidding for part of the bank, according to five people with knowledge of the discussions. The PE firm’s inquiries were preliminary and designed to determine whether a bid... Private equity firm Apollo Management has been talking to General Catalyst, Andreessen Horowitz,...

Photo via Bloomberg

Creator Economy

SVB Sends a Chill Through Hot SXSW

By Kaya Yurieff · Mar 13, 2023 3:25pm PDT

It’s been a wild few days at South by Southwest, the annual tech and arts festival in Austin. The conference is hopping again, with deep lines for many corporate events and parties. But Silicon Valley Bank’s implosion hung over the kickoff, ranging from panic on Friday as startups and investors scrambled to navigate the collapse, to relief by... It’s been a wild few days at South by Southwest, the annual tech and arts festival in Austin. The...

SVB Held Money for Nearly 1,000 Private Tech Investors

By Amir Efrati · Mar 13, 2023 2:50pm PDT

The failure of Silicon Valley Bank sent shockwaves through the tech financing universe. Roughly 1,000 firms, from big names such as Sequoia Capital, Andreessen Horowitz and Benchmark to key crypto and China tech investors, had disclosed that SVB was a custodian for their funds’ capital, according to data compiled by Castle Hall’s... The failure of Silicon Valley Bank sent shockwaves through the tech financing universe. Roughly...

Customers and bystanders from a line outside a Silicon Valley Bank branch on Monday, March 13, 2023, in Wellesley, Mass. Photo by AP.

SVB’s Failure Means ‘Easiest Money’ for Startups Is Gone

By Cory Weinberg and Maria Heeter · Mar 13, 2023 2:35pm PDT · 3 comments

After Chris Herndon raised $9 million from venture capitalists for his travel startup The Guild five years ago, he wanted to take out a loan to pad the firm’s finances. He went with Silicon Valley Bank over JPMorgan, which had more onerous lending terms. SVB also had a closer relationship with his startup’s lead venture investor. ... After Chris Herndon raised $9 million from venture capitalists for his travel startup The Guild...

YC CEO Garry Tan. Photo: Bloomberg.

Y Combinator to End Late-Stage Startup Fund, Lays Off Staff

By Kate Clark and Erin Woo · Mar 13, 2023 1:27pm PDT · 1 comment

YC CEO Garry Tan. Photo: Bloomberg.

Y Combinator to End Late-Stage Startup Fund, Lays Off Staff

By Kate Clark and Erin Woo · Mar 13, 2023 1:27pm PDT · 1 comment

Silicon Valley startup accelerator Y Combinator won’t raise another continuity fund, which backs mature private tech companies, two people familiar with the matter said. The partners who led the fund, Anu Hariharan and Ali Rowghani, plan to leave the firm, the two people said. The pair plan to set up a fund together, one of the people... Silicon Valley startup accelerator Y Combinator won’t raise another continuity fund, which...

Signature Bank's headquarters. Photo by Bloomberg.

Crypto’s 24/7 Trading Disrupted By Bank Crisis

By Aidan Ryan and Akash Pasricha · Mar 13, 2023 8:56am PDT

Crypto in many ways used to be a 24/7 market, but the escalating crisis among a set of small U.S. banks has upended that. Regulators’ abrupt closure Sunday of Signature Bank following Silvergate’s shuttering last week knocked out the two biggest crypto-friendly banks and also means the round-the-clock payment systems both offered... Crypto in many ways used to be a 24/7 market, but the escalating crisis among a set of small U.S....

Photo by Shutterstock

Why the Worst-Case Scenarios of SVB Fallout Are Unlikely

By Martin Peers · Mar 12, 2023 3:15pm PDT

What a weekend! The term “everything everywhere all at once” seems a better description for the turmoil sparked by Friday’s failure of Silicon Valley Bank than for an incomprehensible movie that’s up for an Oscar tonight. The good news is that the worst-case scenarios some on Twitter were broadcasting the past few days seem increasingly... What a weekend! The term “everything everywhere all at once” seems a better description for the...

Photo by Bloomberg.

VC Firms Push for Relief to Avoid SVB-Linked Furloughs

By Kate Clark and Erin Woo · Mar 12, 2023 2:53pm PDT · 6 comments

The influential investors that back startups pushed for government action and took other emergency measures Sunday to avoid the growing threat of furloughs if startups with money tied up at Silicon Valley Bank can’t meet payroll this week. As the government auctioned Silicon Valley Bank’s assets, some lobbied lawmakers to suspend the... The influential investors that back startups pushed for government action and took other...

On Investor Day on March 1, Tesla CEO Elon Musk said he was giving up on nickel batteries for all but very long-range cars and trucks. Photo: Courtesy Tesla

The Electric: The Race to Make a Better Iron-Based Battery

By Steve LeVine · Mar 12, 2023 2:00pm PDT

On Investor Day on March 1, Tesla CEO Elon Musk said he was giving up on nickel batteries for all but very long-range cars and trucks. Photo: Courtesy Tesla

The Electric: The Race to Make a Better Iron-Based Battery

By Steve LeVine · Mar 12, 2023 2:00pm PDT

Until 2020, Tesla only used batteries with nickel-based cathodes. Then the company began to equip some Model 3s it sold in China with an iron-based chemistry called lithium-iron-phosphate. Industry hands derided LFP as a cheap alternative that offered limited range—good only for entry-level economy cars. But Tesla CEO Elon Musk saw LFP as his... Until 2020, Tesla only used batteries with nickel-based cathodes. Then the company began to equip...