Indian startups: The collapse of the Silicon Valley bank and its impact on Indian startups: all the top stories
It only took a few days Bank of Silicon Valley from one of the most sought-after financial institutions among startup founders and the tech community to being shut down by US regulators.
The crisis has affected Indian startups such as cross-border SaaS firms and Y Combinator portfolio firms.
Here’s the top news of the week to get an idea of how the bank’s fallout has impacted the domestic startup ecosystem.
Startups are looking for ways to withdraw funds from SVB
Startups with funds in SVB refinement of ways to transfer your money to another placeeven as U.S. regulators made accounts at the now-closed bank available to savers.
While some have opened bank accounts at the International Financial Services Center in Gujarat’s Gift City, as such banks allow customers to open foreign currency accounts for international transactions, others have considered moving their deposits to neo-banks such as Brex in the US. , and traditional institutions such as JPMorgan Chase, HSBC and CitiGroup.
Discover stories that interest you
In Gift City RBL Bank, ISIKI Bank, Kotak Mahindra Bank, Axis Bank and HSBC worked with startups and founders to open accounts.
Government recommends start-up bank at local level
Domestic startups should “More trust in the Indian banking system,” said Chief MP Rajeev Chandrasekhar. who also assured them of the Center’s support to “manage” the aftermath of the sudden collapse of American lender Silicon Valley Bank.
On Tuesday, the Minister of State for Electronics and Information Technology held a virtual meeting with more than 450 startup founders and investors to take stock of the closing of SVB last Friday.
Startup executives who attended the meeting told ET that the Ministry of Electronics and Information Technology (MeitY) told them about the resilience of Indian banks, “encouraging them to go to local banks.”
According to MeitYChandrasekhar told stakeholders, “We will share the list of proposals with Finance Minister Nirmala Sitharaman and explore how best to address your concerns. We will also explore how smoothly we can facilitate the transfer of your USD deposits to Indian banks, foreign IFSC oriented banks or any other Indian bank which has a presence in the US.”
Starting deposits in SVB worth $1 billion, according to MoS IT
Indian startups $1 billion in deposits in the beleaguered SVBMoS IT Rajeev Chandrasekhar told MoS IT during a Twitter Spaces session on Thursday.
“I have empirically and anecdotally calculated that more than a billion dollars of seed capital in the form of deposits – according to some, this is a conservative estimate – in a Silicon Valley bank, owned by Indian startups,” he said.
He added that the Prime Minister’s Office, the Ministry of Finance and Reserve Bank of India have been monitoring the situation since the crisis began to unfold last week.
Chandrasekhar also said that by some estimates, almost $200 million has been transferred by startups from Silicon Valley Bank to GIFT City.
Chandrasekhar also said that by some estimates, almost $200 million has been transferred by startups from Silicon Valley Bank to GIFT City.