McConnell expects the numbers will continue to go down as more instability shows up in the market. That’s despite Microsoft’s $10 billion infusion into OpenAI and Stripe’s $6.5 billion investment in Stripe, which skewed the figures. Companies raised $76 billion in the first quarter of this year, a 53% year-over-year decline from 2022 figures, according to new Crunchbase data released this morning. We already are absolutely seeing that in March.” “You’re going to see an absolute slowdown. “When that stuff is going on, VC firms aren’t going to be making investments LPs aren’t going to be doing capital calls, because they’re too worried about protecting their dollars,” McConnell says. Even if it doesn’t, that shuffling takes time.

It’s possible that, at scale, companies and firms shuffling some 50% or more of their capital around could damage even well-established banks, McConnell says. “We’ll pull out a large chunk of that money and put it in different places.”

“We’re not going to leave 100% of our dollars in like we have done in the past,” McConnell says. Crunchbase, which had moved its money out of Silicon Valley Bank as part of a previous funding round, is still rejiggering its own capital. Startups, venture capital firms, and limited partners alike are all rethinking their banking strategy, McConnell says-whether they had relationships with Silicon Valley Bank or not. “We’re still not out of it.”įrom McConnell’s seat in the market-as both the CEO of a venture-backed, 241-person startup, as well as a funding data and information provider to 80 million users-the ultimate impact of the tech industry’s banking crisis is going to be substantial, and it’s already showing up in the data. “I’m very much in the bearish camp,” Crunchbase CEO Jager McConnell told me during a conversation on Friday.

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