SVB failure impact; Can NBFCs be the friend in need for cockroach startups?
SVB was the largest lender to some of the biggest names in the tech sector, unicorns, and other startups. Its fallout during the time when funding winter has intensified comes as a drawback for these startups. Cockroach startups come into focus!
The shutdown of Silicon Valley Bank couldn't have been at a worse time for startups who are already finding it difficult to cope with funding winter. SVB the 16th largest bank in the US was a friend in need of startups looking to raise funds. The largest lender in Silicon Valley made many high-ticket investments in Indian startups and provided funds to them when other lenders refused. But that has changed, SVB has met its doomsday! Startups now are worried about getting funds to become a cockroach keeping aside the dreams of becoming a unicorn. In such a situation, NBFCs aka non-banking financial companies are likely to benefit and become a source of funding for these startups to expand their business.