The global economy has rapidly deteriorated, and the tech ecosystem is bracing for impact. Loss-making companies with limited runway are at risk of failure—volatility reigns.

There are two reassuring caveats: first, the VC ecosystem has weathered recessions before, and tech tends to enjoy a strong relative performance during the recovery. This will be especially true in segments with direct relevance to the pandemic, such as remote collaboration software and healthtech. Second, many of the trends that seem to be emerging predate it. Examples here include the decline of growth-at-all-costs and supply chain shifts.

The innovators we serve remain adaptable and optimistic, but also realistic. We are in for a pullback, and SVB will lead the way out.