Rajeev Chandrasekhar, Union minister of State for Information and Technology, will be meeting Indian start-ups to discuss the impact of the Silicon Valley Bank debacle.
The Minister in a tweet wrote, “The SVB Financial closure is certainly disrupting start-ups across the world. Start-ups are an important part of the New India Economy. I will meet with Indian Start-ups this week to understand their impact on them and how the Government can help during this crisis.”
The SVB collapse is set to affect the Indian start-up ecosystem as many Indian start-ups have accounts at the bank, particularly in the SaaS (software as a service) market that caters to American clients.
Also read: Silicon Valley Bank races to prevent bank run as Funds advise pulling out cash
Start-ups with ties to the bank may have a hard time getting access to their funds and they fear that they might have a problem in paying off salaries and might have to pause projects.
Additionally, Indian ventures backed by Y Combinator are also under the gun as at least 40 YC-backed Indian start-ups have $250,000 to $1 million in deposits with SVB, while more than 20 of them have deposits of more than $1 million, according to reports.
Also read: After SVB failure, AngelList launch new product to help startups get emergency capital
Although the exact investment amount is not known for sure, SVB has invested in around 21 Indian start-ups, according to reports. Bluestone, Carwale, InMobi, and Loyalty Rewardz are some start-ups that raised funds from SVB.
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