As the collapse of Silicon Valley Bank (SVB) within the US left the Indian startup ecosystem nervous, Union Minister of State for Electronics and IT, Rajeev Chandrasekhar, on Sunday mentioned he’ll maintain a gathering with the startup Founders and CEOs subsequent week to see how the federal government can help them throughout the disaster.
The financial institution’s collapse goes to impression a number of startups in India which have publicity to its investments and have parked their funds within the financial institution.
“The @SVB_Financial closure is definitely disrupting startups internationally. Startups are an essential a part of #NewIndia Economy,” Chandrasekhar mentioned in a tweet.
The minister mentioned he’ll meet with the Indian startups subsequent week “to perceive the impression on them and how the Narendra Modi authorities can help them “throughout this disaster.”
According to current knowledge by world software-as-a-service (SaaS)-based market intelligence platform Tracxn, SVB had publicity in a minimum of 21 startups in India though it didn’t reveal the dimensions of the funding in these startups.
Top enterprise capitalist (VC) corporations have additionally issued a joint assertion on the collapse of SVB, one of many largest US banks serving the worldwide startup neighborhood, saying they’re “deeply disappointing and regarding”.
According to studies, SVB was a financial institution to greater than 2,500 enterprise capital corporations, together with Lightspeed, Bain Capital and Insight Partners.
On Friday, the US Federal Deposit Insurance Corporation (FDIC) took management of the SVB’s $175 billion in buyer deposits.
US-based expertise startup accelerator Y Combinator, which has invested in hundreds of startups, together with a minimum of 200 from India, has written a petition to US Treasury Secretary Janet Yellen and others, asking them to forestall additional shockwaves that might lead to monetary disaster and layoffs of greater than 100,000 employees.
Over 1,200 CEOs and founders representing over 56,000 workers have already signed the petition, written by Garry Tan, CEO and President of Y Combinator, to save startups and lots of of hundreds of jobs.
(With inputs from IANS)