<![CDATA[This research explores how the collapse of Silicon Valley Bank (SVB) influenced startup funding trends in the United States. Using panel data comprising 23,061 startup funding rounds sourced from S&P Capital IQ, the study evaluates shifts in investment behavior before and after the collapse through Ordinary Least Squares (OLS), Difference-in-Differences (DiD), and subsample regression methods. The results show varied impacts depending on the funding stage. Early-stage startups saw a notable 9% rise in funding after the SVB incident, whereas later-stage startups experienced an equivalent 9% decline. Syndicated investments were linked to higher funding amounts at all stages, with more pronounced effects in early-stage rounds. In addition, established tech companies secured significantly less funding compared to non-tech firms in the post-collapse period, highlighting a broader reassessment of valuations within the tech industry. Overall, the findings indicate that the SVB failure led to a reallocation of capital rather than a universal funding downturn, with investors shifting toward more cautious, targeted investments particularly favoring smaller, early-stage ventures amid heightened systemic uncertainty.]]>
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