A couple of days after the collapse of Silicon Valley Bank (SVB), only one start-up from Kerala has raised a red flag, according to Anoop Ambika, who heads Kerala Startup Mission, the State government agency for entrepreneurship development and incubation activities.
The start-up founder is among several Indian peers who have accounts with SVB. He has a lot more than $250,000 parked there -- that is more than what US regulators, who shut the bank said, would be insured with the Federal Deposit Insurance Corporation (FDIC).
Worried over salary payouts
The start-up founder is worried over payments towards salaries to be made next month, Ambika told businessline. But he hastened to add that it was not as if the CEO had rushed to Startup Mission with an SOS call. The issue had cropped up in a casual conversation he had with the start-up founder recently.
“No other start-up has approached Startup Mission with an SOS call so far. The scenario is just unfolding, and we’re keeping a watch. Suffice to say there’s no panic just yet. Bridge loans or any such form of working capital assistance is not in our scheme of things,,” Ambika said in response to a question.
Also read: Explainer. What caused Silicon Valley Bank’s failure?
No reliable data on start-ups
The Mission does not have readily available data on the number of start-ups registered with the US-based Y Combinator accelerator that has created a new model for funding early stage start-ups, or with exposure to SVB. But it is assumed that some of the large and familiar venture capital funds have big exposures with the discredited bank, Ambika said.
A Mumbai-based angel investor of Kerala origin told businessline he did not have data on affected start-ups from the state . “But then, some of the companies I know are pushing the panic button. At least one, which raised $100 million in the US, received funds in SVB just last week. The ensuing crisis could trigger lay-offs in that company,” he said.
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