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🍋 SVB Wrecked Cali
California’s economy has been in a slowdown for the past year or so. Tax collections from high earners are plummeting, and the stock market is floundering, resulting in a budget deficit of $22.5 billion in the coming fiscal year. And experts think SVB contagion will add to the state’s woes.
🍋 Crypto Comeback
Crypto VC funding has gone cold in 2023, and startups are facing a tough task - how to rebuild the trust of investors and consumers in an industry that has been rocked by scandal. After FTX and the industry’s two largest banking partners (Silvergate and Signature) went belly-up, some founders are now questioning whether the term "crypto" itself is too tainted to effectively fundraise and market their businesses.
🍋 Private Equity Under Pressure
It’s looking like some of private equity’s biggest backers are starting to rethink their investment strategies. Public pension and investment funds have aggressively pursued this risky and expensive asset class over the past decade. But a new Wall Street Journal survey found that many state and local retirement systems are beginning to pull back and test the waters in the public markets.
🍋 The AI Economy
High-interest rates may have dealt a crushing blow to Big Tech and Silicon Valley Bank, but there is no need to lose hope for the future of Silicon Valley just yet. In fact, history and economics tell us that during every economic downturn over the past century, the technology sector has been the one to pull us out of recessions time and time again. And after a rough 2022 and 2023, some economists and investors think that innovations in AI can be that beacon of hope.