SVB collapse: Union Minister Rajeev Chandrasekhar to meet Indian startups this week
"The SVB Financial closure is certainly disrupting startups across the world. Startups are an important part of #NewIndia economy. I will meet with Indian Startups this week to understand the impact on them and how @narendramodi govt can help during this crisis," he said in a tweet.
- Mar 12, 2023,
- Updated Mar 12, 2023 10:44 AM IST
Union Minister of State for Electronics and IT Rajeev Chandrasekhar on Sunday said that he will meet the representatives from the country's startup community to assess the impact of SVB Financial Group's collapse.
The move, as per the minister, is in line with supporting the startup community which is an "important part of New India economy".
"The SVB Financial closure is certainly disrupting startups across world. Startups are an important part of #NewIndia economy. I will meet with Indian Startups this week to understand impact on them n how @narendramodi govt can help during this crisis," he said in a tweet.
The downfall of startup-focused lender SVB Financial Group has created shockwaves in the startup sector, which has been struggling with a sharp slowdown in venture funding.
Many early and mid-stage ventures in India that were banking with the US-based lender are finding themselves in a cash crunch, even for their day-to-day expenses.
These particularly include startups backed by the famed Silicon Valley accelerator Y Combinator (YC), according to a report by Economic Times. As per the report, at least 40 YC-backed Indian startups have $250,000 to $1 million in deposits with SVB, while more than 20 of them have deposits of more than $1 million, according to people in the know.
Meanwhile, amidst one of the biggest collapses, top venture capitalists have said that they would be "strongly supportive" of the lender.
Leading VC firms, through a joint statement said, that SVB has been a trusted and long-time partner in the venture capital industry. "For forty years, it has been an important platform that played a pivotal role in serving the startup community and supporting the innovation economy in the US," the statement read.
The statement was signed by Accel, Altimeter Capital, B Capital Group, General Catalyst, Gil Capital, Greylock Partners, Khosla Ventures, Kleiner Perkins, Lightspeed Venture Partners, Mayfield Fund, Redpoint Ventures, Ribbit Capital, and Upfront Ventures.
The events that unfolded over the past 48 hours have been "deeply disappointing and concerning", the statement said, adding that "in the event that SVB were to be purchased and appropriately capitalised, we would be strongly supportive and encourage our portfolio companies to resume their banking relationship with them."
The joint statement was tweeted by Hemant Taneja, CEO, General Catalyst, who said, "Several VC leaders met today to discuss the aftermath of SVB’s downfall. This is a joint statement from all of us."
Also Read: SVB not a fraud case like FTX, startups need not panic, say experts
Also Read: FDIC takes control of collapsed Silicon Valley Bank, retains employees for 45 days at 1.5x salary
Also Read: SVB collapse: Startups now worried about paying salaries to employees
Union Minister of State for Electronics and IT Rajeev Chandrasekhar on Sunday said that he will meet the representatives from the country's startup community to assess the impact of SVB Financial Group's collapse.
The move, as per the minister, is in line with supporting the startup community which is an "important part of New India economy".
"The SVB Financial closure is certainly disrupting startups across world. Startups are an important part of #NewIndia economy. I will meet with Indian Startups this week to understand impact on them n how @narendramodi govt can help during this crisis," he said in a tweet.
The downfall of startup-focused lender SVB Financial Group has created shockwaves in the startup sector, which has been struggling with a sharp slowdown in venture funding.
Many early and mid-stage ventures in India that were banking with the US-based lender are finding themselves in a cash crunch, even for their day-to-day expenses.
These particularly include startups backed by the famed Silicon Valley accelerator Y Combinator (YC), according to a report by Economic Times. As per the report, at least 40 YC-backed Indian startups have $250,000 to $1 million in deposits with SVB, while more than 20 of them have deposits of more than $1 million, according to people in the know.
Meanwhile, amidst one of the biggest collapses, top venture capitalists have said that they would be "strongly supportive" of the lender.
Leading VC firms, through a joint statement said, that SVB has been a trusted and long-time partner in the venture capital industry. "For forty years, it has been an important platform that played a pivotal role in serving the startup community and supporting the innovation economy in the US," the statement read.
The statement was signed by Accel, Altimeter Capital, B Capital Group, General Catalyst, Gil Capital, Greylock Partners, Khosla Ventures, Kleiner Perkins, Lightspeed Venture Partners, Mayfield Fund, Redpoint Ventures, Ribbit Capital, and Upfront Ventures.
The events that unfolded over the past 48 hours have been "deeply disappointing and concerning", the statement said, adding that "in the event that SVB were to be purchased and appropriately capitalised, we would be strongly supportive and encourage our portfolio companies to resume their banking relationship with them."
The joint statement was tweeted by Hemant Taneja, CEO, General Catalyst, who said, "Several VC leaders met today to discuss the aftermath of SVB’s downfall. This is a joint statement from all of us."
Also Read: SVB not a fraud case like FTX, startups need not panic, say experts
Also Read: FDIC takes control of collapsed Silicon Valley Bank, retains employees for 45 days at 1.5x salary
Also Read: SVB collapse: Startups now worried about paying salaries to employees