Chinese journalist and insider Colin Wu shared some SEC data that might shed light on who is (potentially) exposed to SVB
- From a16z to USV: Who is affected by SVB drama?
- Are things really that bad?
Colin Wu shared statistics retrieved from automated services that index data about ADV forms — public disclosures investing firms should make as part of compliance with U.S. SEC regulations. It looks like the ongoing collapse might be painful for many Web3 VC heavyweights.
From a16z to USV: Who is affected by SVB drama?
Today, on March 11, Colin Wu shared documents that were “autoscrapped” from SEC filings of U.S. companies. These filings are dated 2017-2022 and display how many funds some companies stored in Silicon Valley Bank as of this or that moment.
Unverified US SEC ADV file data shows that a16z-related funds in Silicon Valley Bank was $2.85 billion (Filing Date May 6, 2022), Paradigm-related funds was $1.72 billion (January 13, 2023), Pantera-related funds was $560 million (February 3, 2023). https://t.co/ZU6VwocoT3 pic.twitter.com/rRWmyhE0y7
— Wu Blockchain (@WuBlockchain) March 11, 2023
As every firm has its own filing date, the “snapshot” periods are different. However, it can display the scope of the effects the SVB collapse might have on some top-tier VCs.
For instance, as of May 6, 2022, VC funds associated with Andreessen Horowitz reported $2.85 billion stored in SVB. Two months ago, in mid-January 2023, funds of the Paradigm ecosystem had a $1.72 billion exposure to SVB.
Pantera Capital, the first U.S.-based cryptocurrency fund helmed by Dan Morehead and Joey Krug, reported a $560 million exposure as of Feb. 3, 2023. Wu stressed that we do not know whether VCs managed to take their funds out of collapsing entities.
Another list shared by anonymous Chinese crypto observer @FinanceYF5 displays that out of all crypto-centric advisory firms, Hamilton Lane, the operator of a Polygon-based tokenized fund, might be the worst sufferer: it held $8.3 billion in SVB.
Are things really that bad?
Union Square Venture, an early investor in Coinbase and seed investor in Trust Machines, Numer.ai (NMR) and others, held $4.6 billion in SVB.
Should the data by insiders be relevant, VC majors might have lost 10-15% of their AUM due to the ongoing SVB drama. All mentioned firms keep silence about the losses on their Twitter accounts.
However, the real effect of this situation still remains unclear. Crypto researcher DeFi Ignas stressed today that even Circle, who had a significant share of USDC reserves stored in SVB, might restore its peg.
USD Coin (USDC), the second largest stablecoin, lost its peg to USD and dropped to $0.85 on the news about Silicon Valley Bank shutting down.