New Delhi: America’s (America’s) Silicon Valley Bank (Bank) going bankrupt has created a commotion in the markets around the world. The bankruptcy of this bank has directly affected startup industries because this bank used to provide funds to startup businesses around the world. After the bankruptcy of this bank, there is a possibility that it will be affected in India as well. Also a meeting has been fixed with India in this regard next week.
US-based technology startup accelerator Y Combinator, which has invested in at least 200 startups across the world as well as from India, has written a letter to US Treasury Secretary Janet Yellen and others. SVB’s clients were mostly startups and other tech-focused companies, which had been struggling for cash over the past year. More than 1,200 CEOs and founders representing more than 56,000 employees have signed a letter written by Y Combinator CEO and President Gary Tan calling for startups and thousands of jobs to be saved. Top venture capitalist (VC) firms have released a joint statement on the collapse of SVB, one of the largest US banks serving the global startup community, which is disappointing. According to the report, SVB was a banker to more than 2,500 venture capital firms, including Lightspeed, Bain Capital and Insight Partners. On Friday, the US Federal Deposit Insurance Corporation (FDIC) took control of $175 billion in deposits at SVB.
After the collapse of Silicon Valley Bank (SVB) in the US, concerns about the Indian startup ecosystem have increased. Union Minister of State for Electronics and IT Rajeev Chandrasekhar on Sunday said he will hold a meeting with startup founders and CEOs next week to see what the government can do to help them during the crisis. The collapse of the bank could affect many startups in India who have invested or put their money in it. Chandrasekhar said in a tweet that the closure of SVB is definitely a wake-up call for startups around the world. Startups are an important part of the Indian economy.
Let us tell you that the American Silicon Valley Bank announced the sale of its government bonds following the big loss and the share of SVB Financial, the parent company of this bank, fell by 60 percent, there was a big whirlwind in the American stock market and the Dow Jones index fell by 540 points and S&P-500 The bank index also fell by 6 percent and this is the biggest fall in two years. And with this gaps were created in the stock markets around the world.