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.
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.
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.