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00:00CAN YOU MAKE A TREND OUT OF THIS FOR 2022? GREG BECKER IS WITH US, CEO OF SILICON VALLEY BANK, YOU JUST HAD YOUR OWN NUMBERS. WHAT IS IT ABOUT ROUGHLY 50% OF VENTURE CAPITAL COMPANIES OUT THERE IN THE U.S., MANY VC FIRMS, BANK WITH YOU? YOU HAD A RECORD YEAR. IS THAT LIKELY TO CONTAIN? > > IT ' S GREAT TO BE HERE. INTERESTING WEEK ON BLOOMBERG. CAROLINE: KUDOS FOR STICKING WITH US. WE THANK YOU. > > NO PROBLEM. SOME CALMNESS. WE THINK ABOUT THIS DAILY BASIS, WEEKLY BASIS, BUT TO THINK ABOUT IT LONGER-TERM. WE HAD A GREAT YEAR LAST YEAR. LAST YEAR WAS A RECORD YEAR IN ALMOST EVERY CATEGORY. WE HAD ALMOST 70% ASSET GROWTH. OUR NET INTEREST RATE WAS UP, INCREDIBLE. AND WE HAD A GREAT FOURTH QUARTER. WHAT WAS ALSO POSITIVE IS WE INCREASED OUR GUIDANCE FOR 2022. AND THAT ' S BEFORE THERE WAS ANY BENEFIT OF RATES. SO THAT ' S THE GOOD NEWS. CLEARLY THE CHALLENGE IS WHAT WE ' RE ALL SEEING RIGHT NOW, THE TECH CORRECTION WE ' RE WATCHING ON A DAILY BASIS. CAROLINE: FROM YOUR PERSPECTIVE, DID YOU SEE IT COMING? DID YOU FEEL THIS IS WHERE VALUATIONS HAD GONE TOO FAR TOO FAST AND NEEDED TO SEE SOME REALIGNMENT? FOUR DID THIS TAKE YOU BY SURPRISE? -- OR DID THIS TAKE YOU BY SURPRISE? GREG: I ' VE SEEN A LOT OF DIFFERENT CYCLES. IT ALWAYS FEELS LIKE THE PUBLIC MARKETS TEND TO, I WOULD SAY, OVERSHOOT THE MARK PERIODICALLY, AND THEN UNDER SHOULD THE MARK PERIODICALLY. AND IF FEELS LIKE THAT ' S WHERE WE WERE LAST YEAR. EVERYTHING WAS PRICED TO PERFECTION. EVERYTHING WAS GOING WELL. NOTHING COULD GO WRONG. THIS IS NOT THE WORLD WE LIVE IN, ESPECIALLY WITH HIGH-GROWTH COMPANIES. THE FUNDAMENTALS ARE STILL VERY, VERY, VERY STRONG. SOME ARE BEING IMPACTED NEGATIVELY WITH THE PANDEMIC AND SUPPLY CHAIN, OR WITH THE PANDEMIC HOPEFULLY BEING BEHIND US IN THE NOT-TOO-DISTANT FUTURE, SOME OF THE PANDEMIC STOCKS CORRECTING. BUT IF YOU REALLY LOOK AT THE FUNDAMENTALS OF SO MANY BUSINESSES, IT ' S REALLY THE VALUATION IS JUST COMING DOWN A LITTLE BIT. AND WE ALSO SEE THAT ALMOST IN EVERY SITUATION, WHEN RATES START TO PICK UP, YOU START TO SEE THE HIGHEST GROWTH STOCKS TEND TO PULL BACK. SO I DON ' T THINK WE SHOULD BE THAT SURPRISED WE ARE SITTING HERE RIGHT NOW. CAROLINE: TALK TO US ABOUT WHAT THE PRIVATE MARKETS ARE TELLING US RIGHT NOW. BECAUSE WITH THE PUBLIC MARKETS, AS YOU SAY, SOMETIMES THE PENDULUM SWINGS TOO FAR ONE DIRECTION OR THE OTHER. YOU GOT THE VISION FUND, SAYING THAT MARKETS ARE OVERVALUED. YOU HAVE THE CATHIE WOOD ' S OF THIS WORLD SAYING SHE ' S NEVER SEEN SUCH A DISCONNECT BETWEEN PRIVATE MARKETS AND PUBLIC MARKETS THAN THERE ARE AT THE MOMENT. IS THE PRIVATE MARKET GETTING THE MEMO FROM THE PUBLIC MARKET? RETURNING TO SEE VALUATIONS COME, TOO,? GREG: THE PUBLIC MARKETS ARE MARK TO MARKET EVERY MINUTE OF THE TRADING DAY, SO YOU SEE THAT IMPACT AND EASY TO VOLATILITY, RIGHT? CREDIT MARKETS, THE ONLY TIME VALUATIONS CHANGE, FOR THE MOST PART, IS WHEN A NEW ROUND OF FINANCING IS RAISED. AND THAT PRICE IS SET WHEN THAT MONEY IS RAISED. YOU DON ' T HAVE THE DAY-TO-DAY VOLATILITY. LAST YEAR WAS A RECORD YEAR FOR FUNDRAISING. IT WAS A RECORD YEAR FOR MONEY GOING INTO CENTRAL BACKED COMPANIES, ALMOST DOUBLE WHAT IT WAS THE PRIOR YEAR. SO OUR EVALUATION IS HEALTHY, VERY HIGH-PRICED TO PERFECTION, ABSOLUTELY. BUT THERE ' S SO MANY INCREDIBLE COMPANIES IN THAT PORTFOLIO. SO DO I SEE 2022 AND SEE SOME VALUATIONS CORRECTING WITH SOME OF THESE COMPANIES? THE ANSWER IS I DO. BUT AGAIN, THAT ' S A HEALTHY MARKET. IT ' S A HEALTHY MARKET IN THE PUBLIC. TO BE HONEST, IT ' S A HEALTHY MARKET IN THE PRIVATE. SO THAT BEING SAID, WHAT I ' VE SAID FOR YEARS IS YOU LOOK OUT, AND, THE PROMISE INNOVATION ECONOMY IS GOING TO BE UP AND TO THE RIGHT. IT MIGHT BE A LITTLE ZIGZAG ON THE WAY UP. WE ' RE STILL THINKING NOT JUST THIS QUARTER, NEXT QUARTER, NOT JUST END OF THIS YEAR, NEXT YEAR, WE CONTINUE TO INVEST IN THIS MARKET ACROSS OUR ENTIRE PLATFORM. CAROLINE: GREG, OF COURSE YOU ARE COMMERCIAL. ALSO, GOT THE INVESTED -- INVESTMENT BANKING PART. WILL YOU SEE MORE COMPANIES -- LESS COMPANIES WANT TO GO PUBLIC, START TO SAY PRIVATE LONGER? OR DO THEY DO THEIR FUNDRAISING OUTSIDE THE PUBLIC GLARE WITH VOLATILITY UPON US? GREG: I CAN SAY THAT IN TWO DIFFERENT WAYS. ONE IS ALL TALK ABOUT THE MARKET. AND THE OTHER IS ALL TALK ABOUT OUR BUSINESS RELATIVE TO PUBLIC TECH STOCKS, CAPABILITIES WE BROUGHT ON BOARD. SO LAST YEAR WAS AN INCREDIBLE YEAR. WE LOOKED AT THE NUMBER OF SPAC ' S, NEW IPO ' S, IT WAS A REALLY PROLIFIC YEAR. SO WE EXPECT THE SAME THING IN 2022. THE ANSWER IS NO, WE DO THINK IT ' S GOING TO BE SOFTER. BUT THERE ' S STILL HUNDREDS OF AN -- AND HUNDREDS OF COMPANIES PERFORMING EXCEPTIONALLY WELL THAT, TO BE HONEST, SHOULD BE AND COULD BE PUBLIC COME PANISSE. WHETHER THEY CHOOSE DESK COMPANIES -- COMPANIES. WHETHER THEY CHOOSE TO COME OUT THIS YEAR, THAT ' S UP TO THEM. THEY CAN PERFORM AS PRIVATE COMPANIES. THEY ' RE GOING TO WAIT AND SEE WHAT THE MARKET LOOKS LIKE. BUT THERE WILL BE COMPANIES THAT WILL GO PUBLIC. FOR US, WE HAD A HEALTH CARE BUSINESS IN INVESTMENT BANKING, DONE EXTERNALLY WELL THE LAST COUPLE OF YEARS. WE BUILT ONTO THAT HEALTH CARE SERVICE, NOW TECHNOLOGY, SO WE ' RE STARTING FROM A REALLY SMALL BASE. WE FEEL GOOD ABOUT THE UPSIDE FOR TECHNOLOGY BANKING THIS YEAR BECAUSE, AGAIN, WEEK ' RE JUST BUILDING THAT CAPABILITY. SOME IPO ' S, BUT MOST OF IT RUN M & A, PRIVATE M & A AND THOSE SORTS OF THINGS.

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Nasdaq Has Rough Week

Silicon Valley Bank CEO Greg Becker joins Caroline Hyde to discuss the recent tech selloff and what that means for tech stocks in 2022. Also, his take on the earnings season coming up and what to expect after Netflix's results. (Source: Bloomberg)

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