‘Instability and Chaos’: What SVB and OpenAI Taught Us

Many investors entered 2023 expecting a holdover of the past year’s doldrums: little dealmaking (except for artificial intelligence), cratering valuations and a growing number of down rounds. They weren’t disappointed—but few if any of them predicted the events that really defined venture capital and startup investing this year: the March collapse of Silicon Valley Bank and the boardroom coup at OpenAI.  

The catalysts for both were quite different. SVB was an early victim of the Federal Reserve’s aggressive rate …

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