Wedbush analyst Daniel Ives on Tuesday summed up the impact of the Silicon Valley Bank collapse as the end of the “Cinderella story” for the bank and the venture capital community it served. “While venture debt lines and credit was much more easy to attain by the tech friendly Silicon Valley Bank, now startups face the arduous task of getting loans and banking relationships with large money center banks or other regionals that will greatly scrutinize funding with a lab microscope,” Ives said. Before its collapse last week, Silicon Valley Bank was the “Godfather of the Silicon Valley banking ecosystem” for the past few decades, he said. “With SVB, we believe this is the tip of the iceberg for the broader tech startup world that has shaken venture capitalists in the Valley and around the world with this black eye collapse,” he said.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.