SVB collapse signals it’s time for African venture-capital reset

By David Whitehouse

Posted on Friday, 17 March 2023 09:25
A security guard stands outside of the entrance of the Silicon Valley Bank headquarters in Santa Clara, California, U.S., March 13, 2023. REUTERS

The fall of Silicon Valley Bank (SVB) in the US shows the need for an overhaul of Africa’s venture-capital investment assumptions.

The failed bank, the demise of which has sent global equity markets tumbling, served mostly US tech startups and venture-capital firms. The implications for Africa will come in the form of reduced appetite for exposure to unproven and unprofitable business models.