‘High proportion’ of startups might fold by 12 months’s finish following Silicon Valley Bank failure, Morgan Stanley says

Even with a lifeline supplied by U.S. regulators to ensure deposits past the same old limits after Silicon Valley Bank failed Friday, many startups might not make it to 2024 as funding turns into tougher to safe, in response to Morgan Stanley.

Although actions by the Federal Reserve and the Federal Deposit Insurance Corp. assured the financial institution’s deposits above $250,000 over the weekend, “the medium-term cash burn issue of start-ups remains as pertinent as it was a week ago,” Morgan Stanley strategist Edward Stanley stated…