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

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

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

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

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

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

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

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

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...

The Silicon Valley Bank office in New York. Photo via Bloomberg.

U.S. to Backstop All SVB Deposits; Regional Banks Look Likely to Prevail in Sale

By Lauren Tara LaCapra · Mar 12, 2023 11:23am PDT · 10 comments

The U.S. Treasury, Federal Reserve and Federal Deposit Insurance Corp. said Sunday they would fully backstop the deposits of Silicon Valley Bank. Meanwhile, people familiar with the matter said regional banks are the likeliest bidders to prevail in the sale process for SVB, as the FDIC sorts through the wreckage of the failed bank. Treasury... The U.S. Treasury, Federal Reserve and Federal Deposit Insurance Corp. said Sunday they would...

Photo by Bloomberg.

Wall Street Firm Pounces on SVB Implosion With Offer to Buy Deposit Claims

By Maria Heeter · Mar 11, 2023 12:19pm PST · 9 comments

Photo by Bloomberg.

Wall Street Firm Pounces on SVB Implosion With Offer to Buy Deposit Claims

By Maria Heeter · Mar 11, 2023 12:19pm PST · 9 comments

At least one Wall Street firm is sensing an opportunity in the panic around failed Silicon Valley Bank. Traders from Jefferies are contacting startup founders with money stuck at the bank, offering to buy their deposit claims at a discount, according to several people with direct knowledge of the matter. The firm is offering at least 70 cents on... At least one Wall Street firm is sensing an opportunity in the panic around failed Silicon Valley...

Jeremy Allaire, chief executive of Circle Internet Financial Inc. Photo by Bloomberg.

One of Crypto’s Last Safe Havens Is Spiraling After Silicon Valley Bank Implosion

By Aidan Ryan and Akash Pasricha · Mar 11, 2023 10:48am PST · 2 comments

Silicon Valley Bank’s collapse is sending shockwaves through a key piece of the crypto industry’s financial plumbing. The price of stablecoin USDC tumbled at one point lower than 88 cents Saturday morning, below its theoretical $1 peg, after its issuer, Circle, disclosed it has billions in cash on deposit at failed Silicon Valley... Silicon Valley Bank’s collapse is sending shockwaves through a key piece of the crypto...

How to Run a Modern Media Company: Bank Crash Edition

How to Run a Modern Media Company: Bank Crash Edition

By Jon Steinberg · Mar 11, 2023 7:17am PST

Hi, welcome to your Weekend!I do not envy news media executives, who have difficult jobs in the best of times. This week was not the best of times, as our CEO Jessica Lessin could tell you. While captaining a newsroom going full-throttle to cover the cataclysmic collapse of Silicon Valley Bank, Jessica was also scrambling to ensure that The... Hi, welcome to your Weekend!I do not envy news media executives, who have difficult jobs in the...

Art by Clark Miller.

Market Research

The Starlink Exit Plan: How SpaceX’s Satellites Are Bringing Remote Workers to the Wilderness

By Tim Stevens · Mar 11, 2023 7:00am PST · 7 comments

The promise of Starlink is simple: You, city dweller, dream of holing up in a cabin, sailing the high seas or vagabonding across the country in an RV. But you’re still going to need an internet connection. Enter Starlink, the satellite internet provider operated by SpaceX that will beam high-speed internet down to you whether you’re... The promise of Starlink is simple: You, city dweller, dream of holing up in a cabin, sailing the...

Art by Mike Sullivan.

Shuo Wang Once Sold Scooters at Flea Markets—Now Her Startup Is Worth $12 Billion

By Annie Goldsmith · Mar 11, 2023 7:00am PST · 2 comments

Art by Mike Sullivan.

Shuo Wang Once Sold Scooters at Flea Markets—Now Her Startup Is Worth $12 Billion

By Annie Goldsmith · Mar 11, 2023 7:00am PST · 2 comments

When Shuo Wang was 16, she got her first sales job and learned what she considers the biggest lesson in business. Despite not speaking English well, Wang sold scooters at flea markets in and around Washington, D.C., an offshoot of her mother’s business of selling motorcycles and scooters wholesale. Decades later, Wang attributes many of... When Shuo Wang was 16, she got her first sales job and learned what she considers the biggest...