The failure of Silicon Valley Bank (SVB) has added to the troubles facing start-ups plunged into a funding black hole by the pandemic. In particular, exit activity for venture-backed start-ups in the fourth quarter of 2022 plummeted more than 90% YoY to $5.2bn, the lowest quarterly total for a decade. Funding in February 2023 was down 63% YoY from $48.8bn and late-stage funding fell by 73% YoY whilst early-stage funding was down 52%. Founder optimism may distract them from the precarious environment, but significant and heavy diligence is anticipated by VCs, according to Madison Hawkinson at Costanoa Ventures.