for a year beginnings Spanish companies realize that accessing finance for their projects is more complex. If the record volume of investments in this type of company in 2021 was broken in Spain to 4,300 million euros, in 2022 the funds made the task much more difficult. The financing provided to these entrepreneurs was reduced by 20% to 3,500 million units.According to the report Investment Trends in Spain by the Startup Ecosystem Observatory in Spain Bankinter’s. The increase in interest rates and the end of the curfew were effective behind this decline in investments. The year 2023 looked like major funding rounds of one to ten million would be implemented. However, the bankruptcy of Silicon Valley Bank, a US institution specializing in financing this sector, has brought pessimism to this segment of the economy.
The earthquake that started in California was felt even in Valencia. At least, so is Gonzalo García, the accelerator’s Business Analyst. beginnings Shuttle. “Our companies are not exposed to losses that may arise after the bankruptcy of SVB., but there is a lot of fear that it will eventually jump out on us. We have just come out of two financial crises, and the Fed’s response to the banking crisis shows that the problem may be more serious than it sounds. Also, the words of Joe Biden, president of the United States, did not give confidence to the industry, “says García. The Spanish association that groups venture capital funds (SpainCap) declined to comment on the situation.
It’s too early to count the damage. “The impact on the startup ecosystem will not be seen in the short term, but it is unknown what might happen in the medium or long term,” they explain from Ship2B Ventures. “Without a key player like SVB, the momentum needed for the survival of the financing ecosystem of innovative companies will decrease in the short term, so there may be some choices start you decide to invest, Tressis’ investment director Virginia Pérez says some may not be able to obtain the necessary resources in the short term. Iván García Berjerano, CEO of the Finanziaconnect initiative, expresses himself in a similar way. SVB will paralyze some investments, which will slow or At the most advanced stages, it will prevent possible exits and liquidations in some initiatives.‘ he points.
Venture capital firm Ship2B Ventures guarantees that although the earthquake did not directly affect Spain, it would have indirect repercussions on the industry. “It affects credibility and may have negative implications for future funding rounds”, they explain. According to Ignacio Moreno, co-founder of ‘fintech’ Capchase, which has significant investments in the US, the fall of SVB is a very strong blow to the US entrepreneurial ecosystem. “It’s a very thick stick, even though the bank performed worse. The problem was more in the management of the bank’s assets than in the startups themselves,” he says.
“Such companies have been victims of what happened. They generally do not have large financial departments and tend to collect their income in banks such as SVB.“, explains Íñigo Laucirica, Investment Manager of the Samaipata fund. SVB is an organization founded in 1983 and most of its clients are initiatives. These companies were financed through the bank and deposited their savings in the bank. Some of the companies with the largest deposits in the organization include media outlet BuzzFeed, which has $56 million in deposits; Cryptocurrency exchange Circle with deposits of up to $3.3 billion, or biotech company Alphatech with deposits of up to $14 million.
Some of the Spanish unicorns, namely, beginnings Values of $1,000 million, such as Cabify, Fever or Wallabox, grew in the United States, although SVB’s bankruptcy risks were limited. “We have no affiliation with any of the affected banks”Check it from Wallabox. Other startups, such as Getir, did not want to comment on their situation.
Enthusiasm in venture capital
Contrary to the fears of entrepreneurs, the banking crisis in the USA represents an opportunity for venture capital. “When this kind of thing happens, financing alternatives gain visibility,” says Ignacio Moreno of ‘fintech’ Capchase, which specializes in financing innovative projects. “We will continue to finance” beginnings“provides.
Spanish venture capital funds were less exposed than American funds to the crises unleashed by the SVB. “Bank financing is very residual in this market segment. From our point of view, what happened in SVB does not change anything. We will continue to finance projects,” says Íñigo Laucirica of the Samaipata fund.