Latest news with #SVB
CNBC
20-05-2025
- Business
- CNBC
New report shows the staggering AI cash surge — and the rise of the 'zombiecorn'
Venture capital firms focused on artificial intelligence are driving much of the growth in the startup market, while companies in other areas are struggling to raise cash, according to a report from Silicon Valley Bank. About 40% of the total amount raised by U.S. venture funds last year was from funds that "list AI as a focus," SVB said in its "State of enterprise software" report published on Tuesday. That's up from 10% in 2021. AI companies accounted for 45% of U.S. venture investment in enterprise software, jumping from 9% in 2022. The dollars from AI megadeals — rounds of $100 million or greater — represented about half of all the money raised in the overall megadeal category. That's a group that includes OpenAI and Anthropic. "Exclude AI investment and the story changes," the SVB report said. "There is no meaningful uptick for companies not leveraging AI, with investment from this group essentially flat for the last year." The challenge for the broader market is that exit activity remains tight, a theme that's been in place since soaring inflation in late 2021 led to rising interest rates and a move out of risk. Many investors were bullish that President Donald Trump's return to the White House would reinvigorate the startup economy due to the prospect of lower taxes and less regulation, but the aggressive tariff policy announced in early April led several companies to delay planned IPOs. The tech IPO market is showing signs of picking back up. Trading platform eToro popped in its Nasdaq debut last week, and digital health company Hinge Health is preparing to go public in the coming days. AI infrastructure provider CoreWeave reported 420% revenue growth in its first earnings release as a public company on Wednesday, leading to a 56% surge for the week in the company's stock price. "A recovery in exits is essential to reinvigorate returns and fuel the next cycle of expansion," wrote SVB, which is now a division of First Citizens Bank. SVB collapsed in early 2023 after the bank's clients withdrew billions from their accounts in the face of the Federal Reserve's interest rate hikes. While CoreWeave's IPO represented a big win for venture investors, there aren't many other examples of pure-play AI bets that have proven lucrative so far. OpenAI, Anthropic and other high-valued AI names like Perplexity and Scale AI have shown no indication that an IPO is on the horizon, and the companies are too high-priced to have many potential suitors. They also require continued investment in the billions of dollars to fund big infrastructure purchases and the costs of running massive AI workloads. With so much capital deployed to resource-intensive companies in AI and with a dearth of exits leaving venture firms short on returns, there's not much money left for startups in other markets. "Many run the risk of ending up in no man's land," SVB said. "This is evident in the uptick in 'Zombiecorns' — those with poor revenue growth and unit economics."
Yahoo
16-05-2025
- Business
- Yahoo
Invivyd Inc (IVVD) Q1 2025 Earnings Call Highlights: Strategic Shifts and Financial Discipline ...
PEMGARDA Net Product Revenue: $11.3 million in Q1 2025. Cash and Cash Equivalents: Approximately $48 million as of March end. Operating Expenses: $27.4 million in Q1 2025, a 15% reduction from Q4 2024. Potential Non-Dilutive Funding: Up to $30 million through a term loan facility with SVB. Warning! GuruFocus has detected 3 Warning Signs with IVVD. Release Date: May 15, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Invivyd Inc (NASDAQ:IVVD) has internalized its commercial organization, which is expected to drive broader adoption of PEMGARDA and improve commercial results. The company has secured access to additional non-dilutive capital, which will support growth if certain conditions and milestones are met. Invivyd Inc (NASDAQ:IVVD) is expanding its pipeline to include discovery programs against new viral targets, potentially identifying best-in-class medicines for diseases beyond COVID-19. The company has reported strong revenues thus far in Q2, including record commercial days and weeks, indicating positive momentum. Invivyd Inc (NASDAQ:IVVD) has reduced operating expenses by 15% quarter over quarter, demonstrating financial discipline and efficiency. Q1 revenues dipped from Q4, attributed to the transition to an internal sales team, which created a short-term headwind. The FDA declined Invivyd Inc (NASDAQ:IVVD)'s application for expansion of EUA to include treatment of active mild to moderate COVID in immunocompromised persons, citing insufficient assurance of clinical benefit. There is skepticism among healthcare providers regarding PEMGARDA's ability to navigate virus evolution, partly due to previous inaccurate virology data in the fact sheet. The company faces challenges in educating healthcare providers about the benefits of monoclonal antibodies as an alternative therapy. Invivyd Inc (NASDAQ:IVVD) is operating in a tough biotech financing environment, characterized by higher equity costs and a challenging backdrop for raising capital. Q: Could you please characterize your recent interaction and/or experience with the new agency, particularly on EUA, including maintaining your EUA for COVID prevention and use of EUA for future applications including for treatment and also use of surrogate endpoints such as virus titers for approval? A: Marc Elia, Independent Chairman of the Board, explained that Invivyd prefers to move beyond the EUA construct with the FDA. They have not yet had this conversation with the new FDA leadership but are looking forward to it. The current EUA for COVID-19 prevention was based on immuno bridging and includes contemporary efficacy data, which they plan to leverage in discussions with the FDA. Invivyd sees sVNA titers as a validated surrogate endpoint and anticipates a shift towards a landscape akin to accelerated approval with postmarket conversion studies. Q: Could you please characterize the headwinds encountered in Q1 sales and how you addressed these areas of improvement in the second quarter? A: Tim Lee, Chief Commercial Officer, noted that Q1 saw disruption due to transitioning from a contract sales organization to an in-house team. Despite this, they amplified digital marketing efforts to fill the void. They have seen an increase in breadth, depth, and unique accounts being called on, with a focus on core specialists like rheumatology. The number of sites offering PEMGARDA has increased significantly, and they are seeing strong sales numbers in Q2. Q: Can you discuss the measles program, expected clinical trial development path, potential market size, and how you plan to prioritize it given your current cash position? A: Marc Elia clarified that the measles program is part of their standing budget and does not represent a significant incremental draw on cash balances. It is not a pivot but an addition to their portfolio to create value for patients and shareholders. They are exploring potential national interest in the program and are focused on disciplined spending with attractive near-term return profiles. Q: What gives you confidence that you're going to see momentum continue in the second quarter? A: Tim Lee highlighted the increase in the number of sites offering PEMGARDA and the positive reception from specialists like rheumatologists. They have seen strong sales numbers into Q2 and are optimistic about continued growth due to their strategic focus and increased access to PEMGARDA. Q: How do you plan to leverage your contemporary efficacy data in discussions with the FDA? A: Marc Elia stated that Invivyd plans to leverage their unique contemporary efficacy data in discussions with the FDA to move towards a Biologics License Application (BLA) rather than relying solely on EUA. This approach is embedded in their plans for both pemivibart and future molecules. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-05-2025
- Business
- Yahoo
Bitcoin Will Replace U.S. Dollar In 10 Years, Says Billionaire VC Tim Draper
Within a decade, bitcoin will replace U.S. dollar dominance and become the standard currency underpinning the international economy, according to billionaire venture capitalist Tim Draper. '10 years, something like that. It may be a little less,' Draper said in a wide-ranging Spotlight interview with CoinDesk. Draper reiterated his prediction that bitcoin will rise to $250,000 by the end of 2025, and that after a decade it will be 'infinity against the dollar because there won't be a dollar.' 'Once I can buy my food, my clothing, my shelter, pay my taxes, all in Bitcoin and it's a better way to collect taxes. For sure, there won't be any reason to hold onto any [dollars] and bitcoin will be the primary source of owning wealth,' said Draper. 'The good news here is that banks can now hold your bitcoin and your fiat currency… but you don't want to be in line at the banks trying to get your dollars out to put them into bitcoin when there is a transformation.' Draper warned there will be a run on fiat banks and a global shift to the Bitcoin standard as trust in governments wane and decentralized technology replaces the traditional banking system. This was especially evident when Silicon Valley Bank ('SVB') collapsed in March 2023. 'I got calls from 15 companies, portfolio companies, and they were all saying, I can't make payroll,' said Draper. 'So every treasury of every company that I fund, I recommend that they have bitcoin along with fiat in banks, so that when there are bank failures, or if people stop taking fiat, then they'll be able to make payroll anyway.' SVB's shuttering was followed by the collapse of Signature Bank and preceded by the liquidation of Silvergate Bank. All three financial institutions had ties to the digital assets industry and were impacted by 'contagion effects' in the aftermath of failed crypto exchange FTX, according to the Federal Deposit Insurance Corporation. But crypto companies have found evidence their demise was accelerated by a covert government debanking campaign, known as Operation Chokepoint 2.0, after a previous government effort to sever controversial but legal businesses from banking. Draper views bitcoin as a better technology and software that will replace banks and government-issued currency. At an early age, he learned there is precedent in the U.S. for currency crisis when his father gave him a million dollar confederate bill that was essentially worthless. 'Confederates lost the war to the Union and so there was huge inflation in Confederate money and people were paying a million dollars for just $1 of Union money,' said Draper. 'In effect, we're going through a similar time now.' Draper is a bitcoin maximalist who believes stablecoins are a bridge to bitcoin that will onboard people to utilize digital currencies, but ultimately they are as flawed as the governments that sanction them. 'Stablecoins are subject to inflation. They will inflate if the government prints too much money. They will be worth less and less and less over time, whereas bitcoin is not subject to that,' said Draper. Even though U.S. President Donald Trump's global tariff policies go against Draper's belief in free trade, they hasten his prediction that the U.S. dollar will weaken. The dollar index has dropped almost 8% year to date to 99.96, its lowest level since April 2022. The Trump administration is widely speculated to be analysing ways to devalue the dollar further to make U.S. exports more globally competitive. Nevertheless, Draper is hopeful the U.S. government will negotiate levies down so that trade partners buy more U.S. goods and resume an open market. Within the U.S., Draper is more confident about domestic tech innovation now that the Securities and Exchange Commission and other federal regulators are 'more open to creativity' and have stepped away from the practice of regulation by enforcement. Other technologies he is invested in include genetics. His early investment in Colossal Biosciences made headlines when the genetics lab created a new species of dire wolf and gene-edited 'woolly mice' into existence using a mix of mutations modelled on woolly mammoths. These efforts to 'de-extinct' species aim to restore earth's biological diversity, but Draper believes they will eventually help humans communicate with animals. 'Dogs can smell 10,000 times as well as we can,' said Draper. 'My theory is that it's usually when they're really happy and they like you, they sneeze on you. What they're doing is telling you a story, they sneeze on you and then, '[Here] are all the things that I've done. These are all the things I've smelled.'' Draper believes advances in genetics and artificial intelligence will eventually decode the language of birds that 'must have 500 different words for wind' and a better understanding of the weather. Humans could also learn from talking to ants about their population management. 'Let's start communicating with animals. I think it'll be great and we are getting there,' said Draper. 'It's slow. That's 50 years out.' As for artificial intelligence, the most cynical programmers warn that AI's will eventually dismiss humans as mere carbon bodies with limited use as energy sources, but Draper remains the perpetual optimist. 'I think that humans are going to adapt,' he said. When artificial intelligence replaces human labor, Draper trusts people will resiliently find new jobs with their newfound productivity, make greater impact, and 'gain in quality of life.' Draper believes humans will eventually merge with AI by programming embryos and linking human brains to wifi and other technologies. 'I think it's going to be incredibly amazing for somebody today who's still alive 50 years from now, because they're gonna look back and say, 'God, those poor people, they were all stuck on earth, just earth,' said Draper. 'They had to actually ask their phone for knowledge instead of having their mind anticipate the need for knowledge.'
Yahoo
30-04-2025
- Business
- Yahoo
Treasurys hold gains ahead of refunding plan, key economic data
(Bloomberg) — US Treasuries held recent gains ahead of key economic data that is expected to show a slowdown in inflation and growth, as well as the debt management team's plans for sales in the $29 trillion market. New York City Transit System Chips Away at Subway Fare Evasion NYC's Congestion Toll Raised $159 Million in the First Quarter The Last Thing US Transit Agencies Should Do Now At Bryn Mawr, a Monumental Plaza Traces the Steps of Black History At the National Public Housing Museum, an Embattled Idea Finds a Home The 10-year yield fell one basis point to 4.16%, the lowest level in more than three weeks, and was down for a seventh day amid concern about a faltering US economy. The policy-sensitive two-year yield was up less than one basis point to 3.66%. Traders are broadly on the sidelines ahead of key events for the market, including the so-called quarterly refunding plan, which will detail the Treasury's strategy to fund a $514 billion borrowing need. Also on Wednesday, data is expected to show a contraction in US economic growth in the first quarter as well as a slowdown in inflation as measured by the PCE index in March. 'We are still not in the US recession camp. But we do see a marked slowdown relative to early-in-the-year expectations,' Mohit Kumar, a strategist and chief economist at Jefferies International, wrote in a note. 'From a market perspective, this suggests that the risk sentiment rally is likely to stall and potentially take a step back.' April was a highly volatile month for Treasuries, as investors gamed out the impact of President Donald Trump's tariffs on inflation and economic output. This month's trading range for the US 10-year government bond was the widest since the collapse of SVB in early 2023. In recent days, the market rallied amid signs the US economy is stumbling. A measure of consumer confidence fell to an almost five-year low, job openings dropped to the lowest since September and a widely followed measure of Texas manufacturing activity weakened significantly. That fueled bets on further interest-rate cuts from the Federal Reserve, with swaps now implying 95 basis points of easing this year, which means four quarter-point cuts are almost fully priced. That compares to just three at the end of March. The wagers were also supported by easing inflation expectations. The US 10-year breakeven rate has fallen around 14 basis points in April, the most since 2023, and data later today is expected to show the Fed's favored measure of price growth slowed to 0.1% in March from the month before. Traders are also keeping a close eye on the Treasury Department's refunding plan, which will set the size of next week's auctions that include 3-, 10- and 30-year maturities. It also will project the sizes for all the other note and bond auctions through the end of July. Scott Bessent's team is expected to stick to its strategy of sales of longer-dated securities. 'While the Treasury will likely not want to 'rock the boat' given recent market instability, focus will fall primarily on whether prior guidance as to coupon sizes being maintained for coming quarters remains in place,' said Michael Brown, senior research strategist at Pepperstone Group Ltd. Later this week, investors will get the US jobs report, which is expected to show the economy created 135,000 new positions in April compared to 228,000 in March. Factory orders and the ISM services index are also due this week. —With assistance from James Hirai and Alice Gledhill. Made-in-USA Wheelbarrows Promoted by Trump Are Now Made in China As More Women Lift Weights, Gyms Might Never Be the Same Why US Men Think College Isn't Worth It Anymore Eight Charts Show Men Are Falling Behind, From Classrooms to Careers The Mastermind of the Yellowstone Universe Isn't Done Yet ©2025 Bloomberg L.P. By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy Sign in to access your portfolio
Yahoo
19-04-2025
- Business
- Yahoo
Huntington CFO says loan growth is boosting profit as businesses proceed with ‘cautious optimism' amid tariff uncertainty
Good morning. There's increasing uncertainty surrounding tariffs. However, many small businesses and middle-market companies continue to seek growth opportunities. Customers are showing resilience, said Zachary Wasserman, CFO of Huntington Bancshares Inc. (No. 375 on the Fortune 500), a $210 billion asset regional bank holding company headquartered in Columbus, Ohio. Huntington operates 968 branches in 13 states. What he's hearing from clients is 'cautious optimism' and, particularly on the business side, a lot of strong preparation to manage through an uncertain environment, Wasserman said. But for companies in industries with supply chains that are most exposed to the impact of tariffs, 'there's more trepidation,' he added. Small businesses have less resilience in terms of their financial strength, so there's somewhat more concern, Wasserman said. 'Generally what we're seeing in sentiment and in words is not fully being reflected in activity,' he said. 'We continue to see growth. We continue to see expansion." The bank's loan pipeline, a projection of the likely closings of loans, grew by about 5% in the first two weeks of Q2. 'That's an indication that there's still an expectation for expansion and for investment on the part of commercial customers,' he said. For Q1, Huntington reported on Thursday that net income was $527 million, marking a 26% increase year over year, while net interest income grew 11% year over year, due to strong loan and deposit growth. Average total loans increased 7% to $130.9 billion year over year. Commercial loans grew $2.2 billion or 3% from the prior quarter and 8% year over year to $5.8 billion. For net interest income, Huntington increased its full-year 2025 guidance to a 5%-7% growth range, up from the previously stated 4%-6% range. In response to the earnings beat, its shares were up by 3% at market close on Thursday. During times of uncertainty, it's critical to mitigate risk. But there's also an opportunity to innovate and create paths to future growth. 'We generally operate from a position of opportunity,' Wasserman told me. In March 2023, three regional banks—Silicon Valley Bank (SVB), Signature Bank, and First Republic—failed in just a few days. It was triggered by SVB's bank run, the biggest in more than a decade. It created a ripple effect across the financial industry. Global industry regulators had to step in to prevent the situation from affecting more regional banks. But Hungtington saw the events of 2023 as an opportunity. When many banks pulled back due to liquidity, capital, or credit concerns, Huntington chose to invest for long-term growth, CEO Stephen Steinour said on Thursday's earnings call. 'We took share and accelerated new customer acquisition,' he explained. 'We hired hundreds of talented bankers, added capabilities and expertise and executed very well.' This has prepared Huntington for the current uncertain times, Steinour said. 'Those efforts are now helping us deliver leading deposit and loan growth,' he said. Huntington's 'risk appetite,' is defined as aggregate, moderate to low, Wasserman said. 'It's designed to help us to live throughout an entire economic cycle,' he said. As CFO, I asked him what external factors he'll be closely monitoring. 'I think the path of inflation and, therefore, interest rates is something we'll need to watch very carefully,' Wasserman said. 'We need to see a resolution to some of the discussions around tariffs, which are uncertain at this point, and it's mainly the uncertainty that is causing some potential risk.' Have a good weekend. See you on Monday. Sheryl This story was originally featured on
