Saloni Multani, partner at Galvanize Climate Solutions, discusses the persistent impact of interest rate hikes on venture capital and climate tech following the collapse of Silicon Valley Bank.
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“I don't think the impact of rising rates on the innovation economy and climate tech is, is over. I think, again, I don't think we can expect that this will pass, and we're going to go back to what it was in 21, early 22.”
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More from Saloni Multani
AssertionSupported
Multani: FDIC reported $600B unrealized loss hole across US banks
“The stat I saw that the FDIC had put out was like a six hundred billion dollar hole in bank balance sheets across the US.”
Saloni MultaniMar 30, 2023▶ 8:02SVB, the banking crisis and climatetech
AssertionSupported
Multani: SVB carried a $15B unrealized hole in held-to-maturity assets
“So you know there was a fifteen billion dollar hold in the book, but what they carried them at, yeah, what they carried them at was the fifteen billion higher.”
Saloni MultaniMar 30, 2023▶ 11:48SVB, the banking crisis and climatetech
Insight
Multani: Depositors cannot realistically conduct deep risk due diligence on banks
“It's, look, again, it is far too much to ask for depositors to do this type of work on an institution they're going to leave their deposits with.”
Saloni MultaniMar 30, 2023▶ 17:52SVB, the banking crisis and climatetech
AssertionSupported
Multani: SVB financed roughly 60% of US community solar projects
“It's like, 60% of community solar projects. Yeah, that was in that same article. I think it's sort of a, sort of like a remarkable stat, because it's such a huge, and again, I'm sure a lot of it is in this area, so some of it has to do with geography as well, …”
Saloni MultaniMar 30, 2023▶ 23:41SVB, the banking crisis and climatetech
PredictionNot checkable as stated
Multani: Climatetech financing will not quickly snap back post-SVB acquisition
“I think folks will step into the void, but I do think we need to recognize that it's not gonna, oh, SVB's fixed, we're just gonna snap back to what it used to look like, and cost of capital's gonna go back to what it used to be, you know, the ability to access…”
Saloni MultaniMar 30, 2023▶ 28:17SVB, the banking crisis and climatetech
Insight
Multani: Decarbonization is fundamentally a capital stock turnover problem
“Climate is at its core a capital stock turnover problem where we need to deploy Ultimately, pretty low-cost capital. The corpus of it needs to be in order to turn over our brown infrastructure and make it green.”
Saloni MultaniMay 19, 2022▶ 5:42How will the downturn affect climate tech?
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