Union Minister Rajeev Chandrasekhar will meet this week with Indian startups suffering from the abrupt closure of Silicon Valley Bank (SVB) to grasp the have an effect on and be offering govt help in overcoming the disaster. (ALSO READ: Silicon Valley Bank cave in: What we all know thus far about failed US lender)
“The SVB Financial closure is certainly disrupting startups across the world. Startups are an important part of the New India economy. I will meet with Indian startups this week to understand the impact on them and how Narendra Modi’s government can help during this crisis,” the union minister of state for ability construction, entrepreneurship, and electronics and data generation knowledgeable in a tweet.
Telling that the Indian monetary sector is resilient below PM Modi and taking a dig at Congress, minister Chandrasekhar persisted, “The SVB Financial collapse in US sharp contrast with India’s stable and strong financial sector, which PM Narendra Modi, has rebuilt from its crony NPA ridden destructive during Congress lost decade to a strong, growing catalyst of the New India Economy today.”
How does SVB failure impact India’s startups?
Silicon Valley Bank is the biggest lender to one of the crucial biggest tech corporations on this planet. This comprises various Indian startups which have been uncovered to its investments and would possibly now be caught with the budget raised.
SVB had publicity to no less than 21 startups in India, in line with fresh knowledge from marketplace intelligence platform Tracxn, although the volume invested in those startups is unknown.
Gokul Rajaram, a board member at Pinterest and Coinbase, writes, “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 that would bank a Delaware C Corp with founders who didn’t have an SSN. Unique, tech-forward bank. Shame what’s happening,” he wrote in a Twitter submit.
ALSO READ: Silicon Valley Bank cave in: Here’s why it is not 2008 once more
Silicon Valley Bank cave in
California regulators close down the USA lender and positioned it in receivership, sending shockwaves all over the worldwide monetary marketplace. This came about following SVB’s failed percentage sale try, and startups started chickening out budget on the urging a chance capital corporations. The failure is being described as the biggest monetary establishment failure because the 2008 Washington Mutual cave in on the peak of the monetary disaster.