Silicon Valley Bank Collapse Should Prompt Europe to Rethink Innovation Funding

Inflation and rising interest rates have upended the logic of tech investment and venture capital in particular, after unsustainable gains. The steep fall in the value of unlisted companies inevitably comes with little transparency. This leaves the banks that have funded the tech boom even more vulnerable to sentiment shifts among influential investors and depositors. Although real innovation is not exempt from boom-and-bust cycles, tech investment needs to refocus on content and actual growth prospects in greater detail. As Europe launches initiatives to promote venture capital and help start-ups grow, it needs to rethink the concept, with an emphasis on stability and long-term development.