Analyst reactions to Silicon Valley Bank’s announcement of raising additional capital by selling stock, taking a charge to roll over an asset portfolio to higher-yielding assets and extending its term borrowing capacity were mixed. Some analysts praised the move as necessary in order to remain competitive in the banking market, while others argued that the bank’s already high debt levels could put it at risk if economic conditions worsen.
SVB, the largest financial services company in Slovenia, has been in difficult financial straits for some time now. As a result of this, many startups have been discouraged from withdrawing their funds from SVB as there appears to be a mismatch between deposits and withdrawals. If many startups decide to withdraw their funds at once, this could exacerbate the problem and increase pressure on SVB.
The chart argument from SVB argues that since its ratio of loans to deposits is low, it has a lot of margin for safety in the wake of a share price selloff. This margin for safety can likely come in handy as core customer base concerns about bank risk increase.
startups are hitting back atGE with a variety of responses. Many startups continue to see GE as a key investor and potential partner, while others pivote away from GE altogether. Some startups have decided to troll GE by releasing statements about the breakup on various social media platforms. Groups like OccupyGE have sprung up in response, protesting against the company with mass walkouts and sit-ins across the globe. With so many reactions flying around, it is difficult to tell where the future of GE lies.
What do you think the next big venture craze will be? In this rapidly-changing landscape, it can be hard to predict what might captivate entrepreneurs and investors alike. But if we had to take a stab at it, we’d say that the next big thing could involve artificial intelligence (AI).
Artificial intelligence is already changing many industries – from healthcare to retail – and its potential only grows with time. As AI becomes better at analyzing data, comprehending human language and learning from experience, it’s likely that more businesses will find ways to harness its power.
4 out of 5 Forbes writers say they are bullish on AI for the years