.The biggest story three months into 2023 is the collapse of Silicon Valley Bank. SVB has funded startups and been a cornerstone of the tech economy for four decades. Many emerging tech companies bank through SVB. The closure has affected many startups and other companies, and investors are scrambling to recoup money. Bank stocks are sliding despite government intervention. 

The closure is an existential concern for the tech economy and has led to worries that more banks will fail. Companies are wondering not only what to do with their finances and strategic plans, but also with their marketing, communication and PR efforts. 

Here’s the reality: companies that best handle messaging during turbulent times are resilient. MGP has worked for years providing PR counsel to startups and established tech companies, in bull markets and during downturns. Here are four critical things to consider in a turbulent market:

1. Don’t Panic: How you communicate in an uneasy market sets the tone for your workplace. Everyone is concerned when there is a down market. Don’t project false confidence, but at the same time don’t air uncertainty when things are tough. Employees look to leaders and executives during fearful times. Be honest about challenges and communicate the stakes, but don’t get emotional. How you communicate and the mood you convey is just as important as what you say in these moments.
2. Make Internal Communication a Priority: When companies think of public relations they usually think of outbound PR. Messaging and internal PR is just as, if not more, important during uncertain times. Employees want to know if their jobs are safe, what their employer is doing to navigate the market challenges and if things like shares or holdings are in jeopardy. True leaders  prioritize transparency. It’s not always easy to share tough news, but your employees will appreciate it if you don’t hide what’s happening — and they will find out regardless. A culture of transparency builds a unified mindset and helps companies rally together as a team to get through tough times.
3. Consider Pending News Announcements: Tech and business press are consumed with news about the SVB collapse — and with the possibility of more banks being downgraded or closing. The next few weeks aren’t a great time to launch a product or make an announcement in the tech space. Determine if your announcement can wait or be rescheduled to when the market settles and reporters aren’t consumed with a seismic story. If you have no choice but to move forward, prepare accordingly for challenges like preoccupied reporters and a more challenging news sell-in.
4. Watch Public Comments: An email or call for comment in normal times is usually cause for celebration in a tech company. The opportunity to comment is different during bad news. Chances are executives could be asked to speculate about opponents or competitors or even their own prospects. Discuss if an opportunity could position your company poorly or force you to speculate. Neither are good looks. Declining the opportunity is a valid option. A strong PR team can be a stalwart guide and steer you the right way in these times.   

It’s hard to say if the SVB closure portends more challenging times for tech. What it does mean is that communications and PR are more important than ever. Be mindful and calm during this difficult stretch — and don’t be afraid to ask for help to weather the challenges.

Looking for help with PR strategy and to break through the noise? Mercury Global Partners is an award-winning PR firm focused on emerging tech. Get in touch with us at hello@wearemgp.com. 

The biggest story three months into 2023 is the collapse of Silicon Valley Bank. SVB has funded startups and been a cornerstone of the tech economy for four decades. Many emerging tech companies bank through SVB. The closure has affected many startups and other companies, and investors are scrambling to recoup money. Bank stocks are sliding despite government intervention. 

The closure is an existential concern for the tech economy and has led to worries that more banks will fail. Companies are wondering not only what to do with their finances and strategic plans, but also with their marketing, communication and PR efforts. 

Here’s the reality: companies that best handle messaging during turbulent times are resilient. MGP has worked for years providing PR counsel to startups and established tech companies, in bull markets and during downturns. Here are four critical things to consider in a turbulent market:

1. Don’t Panic: How you communicate in an uneasy market sets the tone for your workplace. Everyone is concerned when there is a down market. Don’t project false confidence, but at the same time don’t air uncertainty when things are tough. Employees look to leaders and executives during fearful times. Be honest about challenges and communicate the stakes, but don’t get emotional. How you communicate and the mood you convey is just as important as what you say in these moments.
2. Make Internal Communication a Priority: When companies think of public relations they usually think of outbound PR. Messaging and internal PR is just as, if not more, important during uncertain times. Employees want to know if their jobs are safe, what their employer is doing to navigate the market challenges and if things like shares or holdings are in jeopardy. True leaders  prioritize transparency. It’s not always easy to share tough news, but your employees will appreciate it if you don’t hide what’s happening — and they will find out regardless. A culture of transparency builds a unified mindset and helps companies rally together as a team to get through tough times.
3. Consider Pending News Announcements: Tech and business press are consumed with news about the SVB collapse — and with the possibility of more banks being downgraded or closing. The next few weeks aren’t a great time to launch a product or make an announcement in the tech space. Determine if your announcement can wait or be rescheduled to when the market settles and reporters aren’t consumed with a seismic story. If you have no choice but to move forward, prepare accordingly for challenges like preoccupied reporters and a more challenging news sell-in.
4. Watch Public Comments: An email or call for comment in normal times is usually cause for celebration in a tech company. The opportunity to comment is different during bad news. Chances are executives could be asked to speculate about opponents or competitors or even their own prospects. Discuss if an opportunity could position your company poorly or force you to speculate. Neither are good looks. Declining the opportunity is a valid option. A strong PR team can be a stalwart guide and steer you the right way in these times.   

It’s hard to say if the SVB closure portends more challenging times for tech. What it does mean is that communications and PR are more important than ever. Be mindful and calm during this difficult stretch — and don’t be afraid to ask for help to weather the challenges.

Looking for help with PR strategy and to break through the noise? Mercury Global Partners is an award-winning PR firm focused on emerging tech. Get in touch with us at hello@wearemgp.com.