The US regulator takes the initiative to calm markets and reassure Silicon Valley Bank depositors. All of their funds will be available beginning Monday. Startups that have struggled to recover their bank deposits are expected to feel some relief. Lender based in California.
According to Siddarth Pai, founding partner at 3one4 Capital, Indian SVB exposure for startups is estimated to be between $2.5 and $3 billion. “The move has definitely given some comfort to startups, but the bigger question is whether founders will be able to transfer all their money out of the bank at one go and if the system will be able to support the withdrawal process. “The backend infrastructure of the US banking system is not as robust as that of India’s,” he told TOI, adding that if there is no new management, large withdrawals could occur.
For Businesses are temporarily relieved. The The founder of a local B2B startup that received funding from the US technology startup accelerator Y Combinator. According to the announcement, it is beneficial to both startups and venture capitalists. “Also, no depositor has ever lost money in a bank run or failure. Even companies that had not planned for such an event would have survived after a brief period of disruption. “There are already a lot of companies that provide line of credit to startups,” the founder stated.
Rajeev Chandrasekhar, Minister of State for Electronics and Technology She stated in a tweet that the US government’s decision was fraught with danger. Indian startups are extinct. “The crisis has taught Indian startups to trust the Indian banking system more,” Chandrasekhar said.
The The failure of America’s 16th largest lender was frequently relied on by new-age technology firms for their banking processes. This sparked a frenzy in the startup community. Inability Accessing funds can cause disruptions in daily operations by interfering with startups’ working capital requirements.