1、H2 2023As we wade through the unsettled waters of 2023,its worth reflecting on how much has changed.At the onset of the year,top market strategists called for weak public markets.Analysts cited concerns over increased market volatility,Federal Reserve overtightening,credit shocks,elevated inflation,

2、recession risk,falling corporate and investor sentiment,rising unemployment and geopolitical tensions.In spite of these hurdles,the market has proved resilient.As of August 17,the S&P 500 stood at 4,370,up 14%on the year.Inflation has fallen precipitously,unemployment remains near recent historic lo

3、ws,the Fed has grown increasingly confident that it can avoid a recession,and investor sentiment seems to be warming.Top players in the private markets,SVB included,predicted material drops in fundraising,investment and exits.While that has mostly played out,for pockets of the innovation economy a f

4、loor is beginning to form.Valuations and investment appear to be stabilizing,company profitability is modestly improving,and generally companies have ample runway.This momentum could reopen the IPO window,bring confidence and stability to late-stage investment and valuations,and help balance limited

5、 partner(LP)allocations to public and private markets.Looking ahead,there are several key indicators that give us pause,such as an inverted yield curve,falling corporate profits,muted LP distributions,increased down rounds and declining revenue growth among startups.Despite this adversity,SVB contin

6、ues to believe in the resilience of the innovation economy.Uncertain and challenging market conditions provide an opportunity for startups to focus on building,on product market fit,on talent,on efficiency,on profitability and on innovation.Startups are already making headway in these realms.Burn mu