What is the impact of SVB's collapse on Product Hunt?
Won Park
11 replies
Silicon Valley Bank collapse: what is the impact? Let's talk
Replies
Charlie Guo@charlierguo
Artificial Ignorance
The really key question is what happens on Monday. Prior to this week, 93% of deposits were uninsured (above the $250K FDIC limit), which means there are a lot of companies with tens or hundreds of millions (like Roku) stuck at SVB.
In all likelihood, companies are going to get 100% of their deposits back if they can wait long enough. But if there isn’t a buyer by next week we’re probably going to see some startups miss payroll. If it somehow takes more than a 1-2 months to sort out SVB’s assets, I think a lot of companies are going to be in trouble.
I don’t think there’s too much contagion unless the FDIC hangs depositors out to dry. If they announce people will only get 95 cents on the dollar for deposits over $250K, it could trigger more bank runs as people move money from small banks to big ones.
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Go Global World
I think it's a new transformation of Silicon Valley, it will actually make the ecosystem stronger. See what really happened to SVB https://www.linkedin.com/pulse/r...
Spectate
Looking back at 2008 - I really hope this won't cause a domino effect like the Lehman Brothers did. Current scenario is very similar, liquidity issues, except this time it's the tech space and not real estate.
But I guess we have seen amazing companies launch during the financial crisis in 2008-2012. Like Slack, 2009 :) So I guess no need to worry long term.
Content Quality Score(E-E-A-T)
I choose no effect
Rapid Scrapper
It's really shocking :(
The innovation may have some effection on this issue.
WebCurate
How SVB and Product Hunt can be related?
Hard to say really. But I'd like to think it'd be hard for there not to be any effect, especially in the long run. SVB has been one of the largest funders of startups, founders, and VCs alike. If founders are impacted, then that might also affect hunters on the platform and even makers in the long run. The impact might not be immediate, but a gradual one. So yes, there could potentially be a decrease in product launches but who knows?