BharatPe co-founder Ashneer Grover on Sunday said he was eager to see how many venture capitalists lose their jobs in wake of the Silicon Valley Bank collapse. “Eager to see how many VCs lose their jobs (yes they do jobs – are not founders and it’s not their own money that they deploy) in the aftermath of SVB. VC space needed a cleanup for long. Ab number aayega inka – too stupid people have made too much easy money in VCs doing nothing”, Grover tweeted. California-based Silicon Valley Bank was shut on Friday by the California Department of Financial Protection and Innovation. The collapse of the 16tyh largest bank in the US is likely to adversely impact the Indian startup scenario, industry experts told PTI.ALSO READ: What we know so far about failed US lenderIn an interview to PTI, Ashu Garg, a prominent Silicon Valley-based VC expressed hope that the matter will get resolved but said that it is a big hit for Indian startups. The Federal Deposit Insurance Corporation said that the SVB had $209 billion in total assets and $175.4 billion in total deposits. Experts feel that since every third startup in Silicon Valley is founded by Indian-Americans, a large number of these founders could affected as early as next week in terms of even making basic payments and paychecks to their employees. ALSO READ: Two US banks collapse back-to-back, are more failures looming?
A large number of Indian startups which do not have even an employee or an office in the US had opened up their accounts in the Silicon Valley Bank as it let them do so without much regulatory questions and with a customer-friendly approach.ALSO READ: Silicon Valley Bank collapse: Here’s why it’s not 2008 againIn India, Union minister Rajeev Chandrasekhar will meet Indian startups affected by the closure of SVB to understand the impact and offer government assistance in overcoming the crisis.
“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,” he said.
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