Many of you may have heard the news about the closure of Silicon Valley Bank by the FDIC, sending ripples though the startup and VC landscape of tech. Capsll was indeed a customer of SVB.
We found the following video to give a great oversight of the situation and the impact for startups
Firstly I’d like to recognize that our relationship with SVB was an excellent one. They proved to be very founder friendly, and we never had a bad experience with them. Their people were truly excellent, their culture was one that is much needed in the tech industry, and our hearts go out to all their staff that have been affected by this event, the second largest financial institutional failure in U.S history.
We believe we navigated this event in a timely response without hesitation, transferring our balance out of SVB on Friday morning, to a contingency account we have had in waiting for the past three months as we monitored the economic climate for startups. Our funds are currently in transfer and there is no reason for us to believe that they will not be available to us in full come Monday.
Our hearts go out to startups struggling with this situation as sadly many may not survive. On that note, despite what you may hear about failing startups over the coming weeks, we still believe that we have a solid plan moving forward, are still extremely investable, and necessarily continue to raise toward our milestones toward profitability.
We are also aware that this event can pose massive setbacks for US tech innovation in general, with some saying it could potentially torch a generation worth of startup innovation.
We believe that part of our story moving forward as we scale will be to play our role in stabilizing and supporting US innovation in whatever capacity we can. Time will tell, but we feel the success of Capsll at scale is now of even greater, and broader importance.
We trust that you will find confidence in the following:
- That we did not hesitate to protect your investment in this fast moving situation, which occurred over a mere 48 hour period. Those who did not are facing large liquidity difficulties.
- That we have diligently managed our runway over the past 5 months as markets have slowed.
- That we have executed on product over the past two years, managed live app development in the app stores for a year now, and executed on going to market when many startups failed to do so under pressure.
- That our team and culture are stronger than ever, ready to move forward with business as usual, or as we refer… a little unusual.
All in all, I believe that the wisdom and resilience our team have show over the past 6 months is remarkable. Every team member has grown substantially, both in their business skill and acumen, as well as in their personal development.
That said, it is still a very challenging time for startups, and while we are currently preparing for a potentially large investment event at the end of March, we do need to continue to actively raise as much as we can immediately, particularly due to possible further tightening of investor wallets in response to this situation and recent economic events.
How you can help:
In the developing “Memory Content Market”, we have every reason to believe that we are ahead of the curve, both in vision and development, but now is the time to drive execution to the next level as we aim to dominate the category. As our partners on this journey you can help us by introducing us to potential investors in your own network. Capsll remains a fantastic investment and humanitarian opportunity. In fact, with a potentially large investment looming, these next few weeks may be the last opportunity to either increase your investment, or for other new investors to benefit from our current raise terms before these favorable early terms close.
I had previously committed to hosting our next investor Zoom call this month, however in light of current events, please allow us the grace to effectively assess the situation and keep our heads down as it plays out over the coming weeks, after which we will inform you of a time for an update in April.
That said, should you have any questions, concerns, or advice at this stage, please feel free to reach out to me at +1 512 888 4067, or Sam at +1 917 525 0993, or alternatively you can email Kelsey Jones at email@example.com to schedule a zoom call with either of us.
It’s times like this that we are so grateful to have an outstanding investor group, and to be in the position of stewarding a truly remarkable product that we whole heartedly believe will positively effect the world in ways that we cannot even yet comprehend.