According to Bloomberg, the collapse of Silicon Valley Bank (SVB) could cause a record drop of 25-30% or $500 million in the venture market. Bloomberg Intelligence analysts stated that the $2 trillion venture capital industry may face a portfolio write-down of 25-30% or $500 million due to the collapse of the American SVB. The analysts noted that SVB’s collapse should lead to a more careful evaluation and disclosure of information. There is no possibility for pretense or expansion in this market. Some venture companies retain assets and maintain capital to avoid disclosing their true value, but such methods only temporarily delay the problem without solving it.
On March 25, during a speech at the opening of the China Development Forum in Beijing, Zhu Min, deputy director of the Chinese Center for International Economic Exchanges, stated that the bankruptcy of one of the largest American banks, Silicon Valley Bank, was related to a serious systemic risk that would affect the US financial system and other countries. According to the expert, the American bank’s bankruptcy was caused by ineffective management in the banking sector, imbalances in its structure, and poor risk management.