![]() ![]() Founded in 2017, ZenBusiness runs an online platform to help small businesses incorporate and stay compliant with regulators. ZenBusiness is one of Austin’s home-grown Unicorn companies. “Like a bunch of us are.”īuhrdorf, founding Chief Technology Officer of HomeAway, which sold to Expedia and is now known as VRBO, is also an active angel investor in Austin and has backed dozens of companies. “We’re scrambling to figure out how to run day to day,” he said. He spoke to Silicon Hills News Sunday morning after an SXSW panel his company moderated. “We ran our business out of it,” Buhrdorf said. The bank backed a lot of startups locally, said Ross Buhrdorf, CEO of Austin-based ZenBusiness. SVB’s bank failure is the buzz around SXSW, the annual technology conference held in Austin every Spring. “The problems of this bank, from reporting about its situation, suggest that because we’re in a higher interest rate environment, assets that it holds, many of which are Treasury assets, or mortgage-backed securities that are guaranteed by the government lose market value, and the problems of the tech sector aren’t at the heart of the problems of this bank,” Yellen said on Face the Nation, according to a show transcript. But the Federal government didn’t plan to bail out the investors and owners of the bank. And that many of the depositors were small businesses and that the regulators were working on a solution for them, she said. On Sunday morning’s Face the Nation TV show, Secretary Yellen said SVB’s failure stemmed from a rise in interest rates. Regulators are working to determine the right actions to ensure the U.S. She said that many of SVB’s depositors are small businesses and are critical to the U.S. Secretary of the Treasury Janet Yellen was working closely with bank regulators on the collapse. Small Business Administrator, also participated in the SXSW panel discussion and said U.S. I know that’s scary, but that’s the reality.” “The federal government has to say all deposits will be made whole. The bank got hit with a liquidity crunch, he said. “The Feds have to come in and say we’ve got you,” Cuban said. If they don’t get access to their funds, it could have substantial ripple effects throughout the economy, he said. All those people who had deposits over the FDIC insured $250,000, that’s tens of thousands of companies that need access to their money for inventory, payroll, and accounts payable, Cuban said. The investors of SVB are out of money, Cuban said. history behind Washington Mutual in 2008. It’s the second-largest bank failure in U.S. ![]() SVB is where a large share of VC firms and VC-backed startups all across the country held deposits, according to the National Venture Capital Association. SVB, which had $209 billion in total assets and $175.4 billion in total deposits at the end of 2022, failed on Friday. If you don’t get paid, others don’t get paid.” If they can’t get their money out come Monday, you ain’t getting paid. “The rich people got wiped out already,” Cuban said at a South by Southwest panel discussion Sunday morning. The Silicon Valley Bank failure can have downstream consequences depending on how the government responds to it, said Mark Cuban, billionaire tech entrepreneur. Small Business Administrator, and Mark Cuban, Billionaire Tech Entrepreneur at ZenBusiness SXSW panel Sunday morning
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