SEATTLE–(BUSINESS WIRE)–Mastersfund is saddened to hear about the FDIC’s closure of SVB today. Understanding the context of how SVB got to this unfortunate position, it is imperative that market participants stay calm.
The most important thing to understand is that this is a balance sheet problem, not an asset quality issue. Industry-wide, venture backed startups continue to grow, build value, and thrive.
“This is not a credit crisis,” said Vani Rao, Principal Partner of Mastersfund. “Rather, the leadership appears to have mismanaged SVB’s interest rate risk while miscalculating the amount of cash their customers would hold on deposit with the bank.”
Mastersfund is open for business. Venture capital investment should not be halted by the closing of a single financial institution. America’s founders will continue to drive innovation, and Mastersfund will continue to be there to provide the support needed for them to thrive.
“It is critical not to let fear thwart the financing and development of innovation in the United States,” said Gillian Muessig, Managing Partner at Mastersfund. “Venture-backed companies are the foundation of our future. We continue to invest with our venture capital colleagues in companies who are building the technology that improves our lives every day.”
Mastersfund’s thoughts are with the wonderful employees of SVB, many of whom are dear friends and colleagues.
About Mastersfund:
Mastersfund is a global venture capital investment firm based in Seattle, WA that invests in women-led, technology-enabled, revenue-generating companies at the seed stage. Mastersfund is led by women who have invested in tech startups for 10+ years, with 4 exits and $475 million in generated revenue. Our superpower is connecting and attracting well-versed partners, all experienced entrepreneurs and investors.
Contacts
Business Inquiries Contact:
Gillian Muessig
206-930-8133
[email protected]
Media Inquiries Contact:
Rex Carlin
206-240-5108
[email protected]
