low interest rate environment of last few years created environment of outsized capital deployment. VCs spent fast in big early rounds. Those startups deposited money into SVB.
SVB put that money to work but the assets they got have depreciated against interest rates (they lost billions).
Add to that, startups aren't raising as much. So deposits incoming to SVB are nowhere what they were. So they can't meet their deposit liabilities.
pcdkd /
npub1w6…t9ec3
2023-03-11 01:04:05
in reply to nevent1q…zcfd
Author Public Key
npub1w65mgf77dfnn9c2vylw8k0rjjvvc8cw60ttw44u2cf0608eyxtlsyt9ec3Seen on
wss://nos.lolPublished at
2023-03-11 01:04:05Event JSON
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"pubkey": "76a9b427de6a6732e14c27dc7b3c72931983e1da7ad6ead78ac25fa79f2432ff",
"created_at": 1678496645,
"kind": 1,
"tags": [
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[
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"content": "low interest rate environment of last few years created environment of outsized capital deployment. VCs spent fast in big early rounds. Those startups deposited money into SVB.\nSVB put that money to work but the assets they got have depreciated against interest rates (they lost billions).\nAdd to that, startups aren't raising as much. So deposits incoming to SVB are nowhere what they were. So they can't meet their deposit liabilities.",
"sig": "39de464124c6e348ed0381f5b8fabc1e11c32ca26826b776b9359bef1ec7a01e84d4ff249508f3c0d46d6628df4352f29b7ec48517f66200d69f731faa5ce2e1"
}