Even with recent turmoil, Founding Partner and Managing Director of venture capital firm Khosla Ventures Samir Kaul says SVB is "one of the safest banks to bank with." Kaul told Yahoo Finance's Rachelle Akuffo that Khosla Ventures recommends companies keep some of their money at SVB, citing to FDIC's move to ensure 100% of all deposits. The firm, alongside several other venture capitalists, originally came out in support of SVB almost two weeks ago, issuing a joint statement encouraging companies to stay with the bank "in the event that SVB were to be purchased and appropriately capitalized." Even though almost half of all VC-backed companies banked with SVB, Kaul says the startup ecosystem remains "as vibrant as ever." That being said, he added the effects from the bank's early March collapse could take another 3 to 6 months to fully shakeout. The lesson to be learned from SVB's collapse: diversity. Smaller, more regional banks that specialize in certain industries are crucial for the economy. The hope, Kaul says, is that banks catering specifically to startups and entrepreneurs will still be around in the wake of SVB. Smaller, more specialized banks are important because they truly understand the unique needs of their customers. The California wine industry had a knowledgeable partner with SVB, and there's now uncertainty among some winemakers on how to move forward. Moving forward, Kaul recommends keeping three months minimum liquidity at multiple institutions, "just in case the unthinkable happens." Whether it's regional or larger banks, it's important to keep asset holdings "diverse." Key Video Highlights: 00:00:07 SVB is "one of the safest banks to bank with" 00:00:27 Regional banks are "crucial" for economy 00:01:34 Always have 3 months liquidity in case "the unthinkable" happens For our full conversation with Samir Kaul, click here
NEW YORK, March 22, 2023--J.P. Morgan (NYSE: JPM) announced today that it has entered into a definitive agreement to acquire Aumni, a leading provider of investment analytics software to the venture capital industry. Financial terms of the transaction were not disclosed and closing is expected in the first half of 2023.
First Republic Bank (FRC) saw some relief Tuesday after closing at a record low Monday. In a speech before the American Bankers Association, Treasury Secretary Janet Yellen assured that the government can step in and backstop more deposits if necessary, giving First Republic shares a boost. Alexander Yokum, CFRA Research Equity Analyst joined Yahoo Finance to talk about First Republic. Yokum says that the bank's location is a key factor in some of the issues it has faced since Silicon Valley Bank's (SIVB) collapse. He told Yahoo Finance "I truly believe if they were based in a state like Alabama they would not be struggling like they are now. So, the fact that they are only 50 miles away from Silicon Valley Bank, their headquarters, and nearly half of all of their deposits are in that Silicon Valley." Watch the full interview with Seana Smith and Dave Briggs here. Key video moments: 00:00:19 On First Republic's location 00:00:58 "There was long lines in front of First Republic offices in the Silicon Valley." 00:01:23 On banking crisis being an emotional response