Indian Startups Worried Over Collapse of Silicon Valley Bank in US

New Delhi: Several Indian startups are worried following the collapse of Silicon Valley Bank (SVB) in the US. These Indian startups had exposure to the investments of the bank. These Indian startups feel their raised funds may now be stuck.

Silicon valley Bank has had exposure in at least 21 startups in India, reveals recent data by global software-as-a-service (SaaS)-based market intelligence platform Tracxn. But the size of investment in Indian startups is not revealed.

The beleaguered bank did not invest in any Indian startup lately.

Gokul Rajaram, a board member at Pinterest and Coinbase, tweeted that “India-based founders don’t know who to turn to as an alternative to SVB”.

“Likely true for founders in other countries too. From what I hear, SVB was the only bank who’d bank a Delaware C Corp with founders who didn’t have a SSN. Unique, tech forward bank. Shame whata¿s happening,” Rajaram posted.

India-based founders don’t know who to turn to as an alternate to SVB. Likely true for founders in other countries too.

From what I hear, SVB was the only bank who’d bank a Delaware C Corp with founders who didn’t have a SSN. Unique, tech forward bank. Shame what’s happening.

— Gokul Rajaram (@gokulr) March 10, 2023

Indian startup founders having links with this bank are a worried lot.

“Hearing of some hedge funds preying on desperate companies and trying to buy out SVB deposits at well below cash. Those who are engaging in these predatory tactics, please remember: karma is real,” Rajaram further posted.

On Friday, the Federal Deposit Insurance Corporation took control of SVB’s $175 billion in customer deposits.

“Deposits of up to $250,000 were insured by the regulator. Beyond that, customers have received no information on when they will regain access to their money,” the report mentioned.