Skip to content

SVB Collapse Could Mean a $500 Billion Venture Capital ‘Haircut’

  • More scrutiny, disclosure is expected after SVB’s collapse: BI
  • “Extend and pretend” approach won’t solve valuation problem

The $2 trillion venture capital industry could see portfolio markdowns of 25% to 30% — a “haircut” of possibly $500 billion — following the Silicon Valley Bank debacle, according to Bloomberg Intelligence. 

“After the failure of SVB, we expect greater valuation scrutiny and disclosure, especially as a large chunk of ‘fiduciary’ capital from pension funds has flowed into these markets — and unlike endowments and family offices, there are no avenues to extend and pretend,” Bloomberg Intelligence analyst Gaurav Patankar writes in a note Friday.