India tech minister says to meet startups on SVB fallout

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India's state minister for technology said on Sunday he will meet start-ups this week to asses the impact on them of Silicon Valley Bank's collapse, as concerns rise about the fallout for the Indian start-up sector.

SVB's failure, the biggest in the U.S. since the 2008 financial crisis, has roiled global markets, hit banking stocks and is now unsettling Indian entrepreneurs.

Two partners at an Indian venture capital fund and one lender to Indian start-ups told Reuters that they are running checks with portfolio companies on any SVB exposure and if so, whether it is a significant part of their total bank balance. Consumer internet startups, which have drawn the bulk of funding in India in recent years, are less affected because they either do not have an SVB account or have minimal exposure to it, the three people said.

"Spoke to some founders and it is very bad," Ashish Dave, CEO of Mirae Asset Venture Investments , wrote in a tweet. "Especially for Indian founders ... who setup their U.S. companies and raised their initial round, SVB is default bank. Uncertainty is killing them. Growth ones are relatively safer as they diversified. Last thing founders needed"., a mobile gaming company, said in a stock exchange filing that two of its subsidiaries, Kiddopia Inc and Mediawrkz Inc, hold cash balances totalling $7.75 million or 640 million rupees with SVB.

 

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Silicon Valley investors and founders express shock at sudden collapse of SVBThe technology industry is struggling to make sense of and account for potential repercussions of Silicon Valley Bank's sudden collapse. Huge ramifications on Silicon Valley. Lots of payroll through them. Lots of venture funding through them.
Source: CNBC - 🏆 12. / 72 Read more »