Some space startups threatened by Silicon Valley Bank failure
Link here. The companies mentioned in the article are Astra, BlackSky, Planet, Redwire, Rocket Lab, and Space Perspective.
Rocket Lab has about 8% of its cash assets now trapped by the closure. All the companies had loans from Silicon Valley Bank, some of which were paid off prior to the crash. This quote suggests the situation is critical for some space startups:
“It’s a very serious situation,” said a space sector entrepreneur who asked not to be identified. “Our balance is suddenly only $450. There has been no communication from SVB even after the event became known. Our primary SVB liaison, who has been very attentive in the past, is unreachable by any means. It’s appalling.”
The support of my readers through the years has given me the freedom and ability to analyze objectively the ongoing renaissance in space, as well as the cultural changes -- for good or ill -- that are happening across America. Four years ago, just before the 2020 election I wrote that Joe Biden's mental health was suspect. Only in this year has the propaganda mainstream media decided to recognize that basic fact.
Fourteen years ago I wrote that SLS and Orion were a bad ideas, a waste of money, would be years behind schedule, and better replaced by commercial private enterprise. Even today NASA and Congress refuse to recognize this reality.
In 2020 when the world panicked over COVID I wrote that the panic was unnecessary, that the virus was apparently simply a variation of the flu, that masks were not simply pointless but if worn incorrectly were a health threat, that the lockdowns were a disaster and did nothing to stop the spread of COVID. Only in the past year have some of our so-called experts in the health field have begun to recognize these facts.
Your help allows me to do this kind of intelligent analysis. I take no advertising or sponsors, so my reporting isn't influenced by donations by established space or drug companies. Instead, I rely entirely on donations and subscriptions from my readers, which gives me the freedom to write what I think, unencumbered by outside influences.
Please consider supporting my work here at Behind the Black.
You can support me either by giving a one-time contribution or a regular subscription. There are five ways of doing so:
1. Zelle: This is the only internet method that charges no fees. All you have to do is use the Zelle link at your internet bank and give my name and email address (zimmerman at nasw dot org). What you donate is what I get.
2. Patreon: Go to my website there and pick one of five monthly subscription amounts, or by making a one-time donation.
3. A Paypal Donation:
5. Donate by check, payable to Robert Zimmerman and mailed to
Behind The Black
c/o Robert Zimmerman
P.O.Box 1262
Cortaro, AZ 85652
You can also support me by buying one of my books, as noted in the boxes interspersed throughout the webpage or shown in the menu above. And if you buy the books through the ebookit links, I get a larger cut and I get it sooner.
Link here. The companies mentioned in the article are Astra, BlackSky, Planet, Redwire, Rocket Lab, and Space Perspective.
Rocket Lab has about 8% of its cash assets now trapped by the closure. All the companies had loans from Silicon Valley Bank, some of which were paid off prior to the crash. This quote suggests the situation is critical for some space startups:
“It’s a very serious situation,” said a space sector entrepreneur who asked not to be identified. “Our balance is suddenly only $450. There has been no communication from SVB even after the event became known. Our primary SVB liaison, who has been very attentive in the past, is unreachable by any means. It’s appalling.”
The support of my readers through the years has given me the freedom and ability to analyze objectively the ongoing renaissance in space, as well as the cultural changes -- for good or ill -- that are happening across America. Four years ago, just before the 2020 election I wrote that Joe Biden's mental health was suspect. Only in this year has the propaganda mainstream media decided to recognize that basic fact.
Fourteen years ago I wrote that SLS and Orion were a bad ideas, a waste of money, would be years behind schedule, and better replaced by commercial private enterprise. Even today NASA and Congress refuse to recognize this reality.
In 2020 when the world panicked over COVID I wrote that the panic was unnecessary, that the virus was apparently simply a variation of the flu, that masks were not simply pointless but if worn incorrectly were a health threat, that the lockdowns were a disaster and did nothing to stop the spread of COVID. Only in the past year have some of our so-called experts in the health field have begun to recognize these facts.
Your help allows me to do this kind of intelligent analysis. I take no advertising or sponsors, so my reporting isn't influenced by donations by established space or drug companies. Instead, I rely entirely on donations and subscriptions from my readers, which gives me the freedom to write what I think, unencumbered by outside influences.
Please consider supporting my work here at Behind the Black.
You can support me either by giving a one-time contribution or a regular subscription. There are five ways of doing so:
1. Zelle: This is the only internet method that charges no fees. All you have to do is use the Zelle link at your internet bank and give my name and email address (zimmerman at nasw dot org). What you donate is what I get.
2. Patreon: Go to my website there and pick one of five monthly subscription amounts, or by making a one-time donation.
3. A Paypal Donation:
5. Donate by check, payable to Robert Zimmerman and mailed to
Behind The Black
c/o Robert Zimmerman
P.O.Box 1262
Cortaro, AZ 85652
You can also support me by buying one of my books, as noted in the boxes interspersed throughout the webpage or shown in the menu above. And if you buy the books through the ebookit links, I get a larger cut and I get it sooner.
Just look who SVB had in charge of Risk Assessment:
https://www.dailymail.co.uk/news/article-11848705/Woke-head-risk-assessment-Silicon-Valley-Bank-accused-prioritizing-diversity-issues.html
From the article:
“Last year professional network Outstanding listed Ersapah as a top 100 LGTBQ Future Leader.
‘Jay is a leading figure for the bank’s awareness activities including being a panelist at the SVB’s Global Pride townhall to share her experiences as a lesbian of color, moderating SVB’s EMEA Pride townhall and was instrumental in initiating the organization’s first ever global “safe space catch-up”, supporting employees in sharing their experiences of coming out,’ her bio on the Outstanding website states.”
Lots of things like “Lesbian Visibility” but not a whole lot about experience with risk assessment.
Yup, their funding of start-ups and whiz-kids may have been insanely risky, but their PRONOUNS were all in order.
“Get woke, go broke.”
Silicon Valley put a lot of people out of work.
This is divine punishment for doing so.
Speaking of woke:
https://up-ship.com/blog/?p=51755
Ugh…
It’s A Wonderful Life (1946)
“I’ve Never Really Seen One, but Thats Got All the Earmarks of Being a Run…”
https://youtu.be/F8DbswBIl9k?t=57
7:40
Tucker (3-10-23)
“SVB”
https://youtu.be/cl-ZawiAghE?t=259
“Few things are more empowering to oppressed female bankers, than skiing in Tahoe…”
I talked to an investor in Boston who said that venture backed companies he was close to had been tipped off and wired out their money. You wonder what kind of rumor mill it takes to create a run on a bank with such a small number of depositors. News media still hasn’t revealed a credible loss profile.
RKLB was quick to announce how much they have (or had) in SVB, at $38M. But overall they had (as of DEC 2022) $242M+ in cash. So assuming they get only a percentage of that $38M back, it hurts, but the impact should be absorbable.
Astra has not announced if they had cash in the bank, which means they got hurt bad, or not at all. The only thing I have heard is that they paid off a loan there last year. If they had nothing there, they dodged a bullet. They had $141M+ in cash, but their income was much lower. Their last financial statement (SEPT 2022) stated concerns about the next year. Their next quarterly release is March 30.
The only announcement Astra they made was that they contracted to investigate investors of their stock. I am not enough of a finance person to understand what that part means, and would love to hear from someone with more familiarity with this stuff.
FDIC Will Protect All Silicon Valley Bank Deposits After Sudden Collapse, Treasury Says
https://www.forbes.com/sites/marisadellatto/2023/03/12/fdic-will-protect-all-silicon-valley-bank-deposits-after-sudden-collapse-treasury-says/?sh=6cfacff216c2
Good thread covering todays evolution of the crisis.
https://www.zerohedge.com/markets/svb-latest-developments-live-blog-fdic-auction-failed-svb-assets-underway
If you are not tracking, Feds shuttered a second bank, one that backs a lot of cryptos.
Georgec
One year as a caddie teaches more about business than a Harvard MBA.
That and listening to a Motorola on the shop floor as security.
Taxpayers are bailing out the crooks. Again. Making FDIC insurance limitless. Stocks, bonds and crypto futures are skyrocketing. They love having taxpayers fund their corruption. I should say our great and great great grand children.
“The Federal Reserve Just Made An Emergency Decision Which Will Fundamentally Change Banking In America Forever
Did you think that the Federal Reserve was just going to stand by and watch the U.S. banking system completely collapse? In response to the stunning failures of Silicon Valley Bank and Signature Bank, the Federal Reserve announced a rescue plan on Sunday evening that is going to radically change banking in America forever. All deposits at Silicon Valley Bank and Signature Bank will be fully guaranteed and will be available on Monday. Of course the Federal Reserve can’t just make an exception for these two banks. If they are going to do this for them, that means that they are going to have to do it for everyone else too. So what this means is that from this point forward the Federal Reserve is essentially promising to guarantee every bank account in America. Considering the fact that more than 19 trillion dollars is deposited with U.S. banks, that is quite a promise to make.”
http://endoftheamericandream.com/the-federal-reserve-just-made-an-emergency-decision-which-will-fundamentally-change-banking-in-america-forever/
So our money is now Oprah’s?
https://up-ship.com/blog/?p=51766
Come the opening bell…all I expect to hear is “bring out your dead.”
sippin_bourbon-
thanks for that zero-hedge link.
If we hear the phrase “actively injecting liquidity into the system…” this morning, then we know everyone is {expletive]!
This sounds (ungodly) expensive– and the Republicans will go along with ANY thing that is proposed.
-In the good-old-days before FDR, Officers & Board members of banks, were held personally (and criminally) liable for all losses.
Margin Call (2011)
“Senior Partners Emergency Meeting”
https://youtu.be/Hhy7JUinlu0?t=59
SVB was big with tech startups, many of them Chinese tech startups. As Robert points out there are no Chinese companies, it’s all the Chinese Communist Party. So SVB is another American taxpayer slush fund for the godless Chicom commies (with 10% for the Big Guy).
My personal strategy is to not be the one without a chair when the music stops playing.
Speaking of I just came across this article on another one of the endless ways the American taxpayer is getting soaked:
“Red Cross Produces Maps on How to Enter US Illegally Without Getting Caught
The Daily Caller News Foundation has obtained maps and other information guides produced by the American Red Cross. They direct illegal immigrants on how to escape detection, survive the desert, obtain contraceptives, and even jump on trains safely.
US taxpayers directly fund the Red Cross for millions of dollars. We are funding our own demise.
While all this is going on, our enemies are forming alliances to depose us or worse.”
https://www.independentsentinel.com/red-cross-produces-maps-on-how-to-enter-us-illegally-without-getting-caught/
Wayne, “Margin Call” about the 2008 housing crash is an amazing movie, one of my favorites. Another brilliant movie on the 2008 housing crash is “The Big Short”. And this full 22 minute 2009 episode from South Park that is a parody of the housing crash (warning for language):
SOUTH PARK
Margaritaville
03/26/2009
22 minutes
https://southpark.cc.com/episodes/9do3gw/south-park-margaritaville-season-13-ep-3
James Street – I have an MBA wirh a concentration in Finance and Accounting and worked in Corporate Treasury (The corporate department that works with Wall Street) for one of the largest firms in the world, a household name, after I retired from the Army. I TOTALLY agree with you. This drives a stake through the concept or moral hazard. It’s party time! Throw cash at anything! There’s no downside risk! The US taxpayer will make us whole! And in a classic “Heads I win, Tails you lose” deal – if I make huge profits, they are mine. If they are huge losses, they are yours. SUCKER
Are banks allowed to restrict how quickly their large depositors can withdraw the funds? It served no ones interest for the SVB to have to close because multi million $ depositors could not close their accounts immediately. An institution with $50 million on deposit in a bank has professional staff who make sure the bank is sound. Why are the Feds involved at this point? Banks and large depositors simply have to work out agreements that cover how quickly funds can be withdrawn and how to unwind various bank insolvency scenarios.
Col Beausabre–
correct me if I’m mistaken–> SVB was a commercial bank and none of us here have enough money to open any type of account. (They don’t give away toasters.)
–Do you have any good Bank Jokes?
Stephen–
depends which type of account you have, “demand deposit accounts” have no restrictions. Think your checking account.
James–
Both good movies!
Rick Santelli (2009)
https://youtu.be/zp-Jw-5Kx8k
4:36
“Do you have any good Bank Jokes?”
Where do polar bears keep their money?
In a snowbank.
wayne
I watched Rick Sanetelli live that day.
I am not a financial guru, but was mildly interested in the markets as I had both recently returned from an all expense paid, extended overseas vacation in the Sun and Sand (but no water) courtesy of Uncle Sam, and had become a new homeowner, while all heck was busting loose.
I remember cheering at the TV because I had never heard anyone brave enough to say that on a major network.
To this day, I have wanted to know what back channel communications from the White House to the CNBC directors took place immediately after. We already knew that Obama had extensive ties to major media personalities, and want to know how many staffers spat out their coffee at this.
sippin_bourbon-
great back-story!
Murray Rothbard on Fractional Reserve Banking, Bank Runs, and the FDIC
(Michigan Libertarian Party Convention, May 1989)
https://youtu.be/0m5cjhwh1vA
2:34