Climate tech startups face 'massive hole' after Silicon Valley Bank collapse

yahoo finance ^ | 4/6/23 | Grace O'Donnell

[CFW]

When Silicon Valley Bank (SVB) suddenly collapsed in the second-largest bank failure in U.S. history, many startups and their VC backers focused on sustainability and tackling climate change sprang into action to secure their funds.

Federal financial regulators soon stepped in to guarantee deposits, but tighter lending conditions from the banking crisis and higher interest rates pose new challenges for climate tech companies at a time when there's not much time to act and avert the worst effects of climate change.

“There is a massive hole in that slice of the climate capitalization pie that's missing," Sophie Purdom, climate tech investor and founder of Climate Tech VC, told Yahoo Finance at the recent Techonomy conference. “SVB did play this really essential role in the ecosystem because they were willing to take on technologically perceived riskier types of clients than maybe the bigger four or so banks were willing to mess around with. These tend to be smaller companies, smaller accounts, [with] higher risk premiums."

[Honest Nigerian]

Well, this is quite interesting because of some obscure piece of tax legislation regarding mandatory capitalization of Qualified Research Expenses. This arcane topic involves how something in the 2017 Tax Cuts and Jobs Act REQUIRES companies to depreciate QREs over 6 years instead of expensing the amounts in the year such amounts were incurred/paid.
The companies that are most likely to be affected are tech companies, but definitely include biggies like IBM, Amazon, Apple, Microsoft, Lockheed Martin, Boeing, etc.
Affected individuals and companies are facing very painful increases in the taxes due around .... OH! just about this time of year!
It is somewhat poetic irony that the smaller tech companies which are often funded and/or owned by lefties will be feeling the pain.
Or, perhaps the legislation will be modified/repealed. After all, the Bi-di-diot administration already found one way to insulate the players from financial catastrophe at the expense of the rank-and-file taxpayer.
Hope someone finds these remarks interesting.

[ridesthemiles]

IF I HAD MONEY TO “INVEST”—

CLIMATE CRAP IS NOT ON THE LIST OF TARGETS I WOULD LOOK AT.

IT IS A MANUFACTURED PROBLEM LOOKING FOR A FINANCIAL SOLUTION

IT IS A SCAM

[bobbo666]

A giant hole? Good. Jump in, your stolen money is down there somewhere.

[bert]

I was visiting a friend in Mountain View California and while driving on an interstate was treated to a fantastic sight. There was this really large green glass building with two signs......... Soylandra and For Sale

I wonder if any body ever bought it?

[Worldtraveler once upon a time]

--- "Soylandra and For Sale... I wonder if any body ever bought it?"

Sorry for the late reply. It is interesting that Solyndra was what Obama said was the future of the solar industry. He and Chu threw money away, and they were correct. Solyndra today IS THE FUTURE as abiotic hydrocarbons and nuclear will be the real future, as soon as the idiots on the Left are toppled.