TLDR:
Brookfield and Pinegrove Capital bought SVB’s Silicon Valley Capital venture investment arm for $340 million. The acquired venture portfolio’s exact value is unknown, but reports suggest it hasn’t been profitable. This marks a significant bet for Brookfield, doubling their exposure to early-stage tech companies.
Silicon Valley Bank’s collapse continues to have repercussions more than a year later. The sale of SVB’s Silicon Valley Capital venture investment arm marks a significant milestone in this ongoing saga. The division is set to be spun off for $340 million, with Brookfield and Pinegrove Capital emerging as the buyers. Pinegrove Capital, backed by Brookfield and influential venture capital firm Sequoia, remains somewhat of a mystery online. The real value of the acquired venture portfolio is unknown, as reports indicate it has not been profitable and has experienced significant layoffs since SVB’s collapse.
The $340 million price tag for the venture portfolio acquisition may seem high, particularly given the risks associated with venture investing in the current economic climate. This move represents a notable investment for Brookfield, doubling their exposure to early-stage tech companies. While this is still a small portion of their $900 billion portfolio, it signals positive sentiment towards the property technology industry. With Brookfield’s expertise in real estate, it is likely that they will prioritize investments that align with their existing ecosystem and business model, potentially leading to increased funding for PropTech companies.
