SVB Collapse: A brief article about the SVB collapse and what it might mean to the startup world. We all know that the tech industry is undergoing layoffs over the last 6-8 months. The fall of SVB has made us question the stability of startups. We already saw a reduction in VC money and investments going into the tech-based startup sector. However, the collapse might mean that investors can take on a further conservative route sending some alarm signals for the startup world.
Are startup layoffs on the rise? – SVB Collapse
The SVB collapse has certainly sent across some tidal waves for certainty in the startup sector. I’m not entirely sure if this signals the start of a recession, but the tech layoffs news continues. There certainly is scepticism that the startup economy might be deeply affected.
Rise of Layoffs in the startup sector
Tech layoffs have been on a constant rise over the last year. However, the news of SVB collapse might only start fuelling the increased stress around startups as well. As we already know, investors are already taking on a conservative note for startup funding. With this SVB collapse, it might signal that funding across the board for startups might reduce.
If you’re a startup thinking of raising Series A, B or C funds – perhaps you might benefit from waiting if you can manage without fundraising or depending on your own revenue.
Something to look out for in the startup sector is the startup layoffs that might follow. A full list of 2023 Tech Layoffs can be found here.
What does this mean to me as an entrepreneur?
As an entrepreneur, every wave in the finance industry would worry me. However, the single largest benefit you have as a startup founder is your agility compared to larger companies. Although this might start signalling slowdown and further reduction in investor trust, our best bet is to dig deep and find a way to survive.
- Maybe it is the time for a pivot that you’ve always been thinking about
- Or might be an opportunity to consider a leaner operating model for your startup
I’m sure it can mean different things considering the type of business you’re running. It is only with an emapthy I can state that the times are tough. The best way might just be to figure out something innovative that can help you stay afloat during times of crisis.
