Silicon Valley Bank collapse: A Nightmare for Indian Startup Ecosystem | Mint Explains | Mint

The collapse of Silicon Valley Bank (SVB), a major... moreThe collapse of Silicon Valley Bank (SVB), a major player in lending and financing for technology startups, has sent shockwaves through the Indian startup ecosystem, which heavily relies on foreign investors and venture capitalists for funding. SVB's exposure to 21 Indian startups, likely to be more than $1 billion USD, has left many in limbo, with disruptions and delays in accessing funds potentially compromising their ability to pay vendors, employees, and other stakeholders. The closure of SVB may reduce the availability of financing and banking services for Indian startups, particularly in the technology and life sciences sectors, and make it more difficult for these companies to compete in the global market. While the FDIC insures deposits up to $250,000 per depositor, startups that bank exclusively with SVB may still face difficulties if their working capital requirements exceed that amount. Other banks and financial institutions may provide alternative sources of funding and support, but the Indian startup ecosystem will undoubtedly need to adapt to this new reality.