Chennai: The Fall of Silicon Valley Bank (SVB) can impact entrepreneurs and startups around the world svb Has been the banker of choice for the global startup world including Indian entrepreneurs.
It is common for homegrown startups to incorporate in the US to receive capital from global VC firms, and the money raised is often pooled in SVBs. “About 90% of India’s SaaS (software-as-a-service) startups with a large customer base in the US, and also startups backed by Y Combinator (a well-known US startup accelerator), especially SVB’s is associated with,” a venture capital investor told TOI.
It is common for Indian startups to choose to incorporate in the US to receive capital from global VC firms, and the funds raised are often pooled in SVBs. This is more prevalent among SaaS firms whose customers are typically in the North American market. SaaS firms sell software in the form of online subscriptions, and India has been particularly strong in this segment, as it requires negligible investment in the customer market.
For these early-stage startups, SVB accounts typically hold the investments they raise. Their client revenue is mostly credited to Indian accounts for operating and salary expenses. However, larger and older SaaS companies have diversified their holdings, banking with several large banks.
Even as the US regulator shut down SVB on Friday night, several startups with deposits in the bank were keenly tracking developments. money in Indian Bank The accounts are only sufficient for 2-3 months of payroll and operations. Many are hopeful of a resolution by then.
TOI spoke to five startups that were alerted about the SVB crisis by their global investors on Friday morning, and while some of them have managed to withdraw their money, others are waiting for the US regulator to finalize plans. Eagerly waiting.
Prabhu Ramachandran, co-founder and CEO of real estate SaaS startup Facilio, said he has “a substantial portion” of his wealth with SVB. Ramachandran said, “We have money outside SVB to cover 4-5 months of our operations. This gives us enough time to resolve the crisis and utilize our funds in SVB.” “It all happened within 24 hours,” he said.
SaaS startup Rocketlane, which also had money in SVB, managed to get part of its money out in time. “Losing access to our funds for payroll is the last thing we were designed for as a startup. So it was a lot of chaos and confusion trying to do the right thing,” said Srikrishnan Ganesan, co-founder of Rocketlane. Said.
Gaming firm Nazara Technologies on Sunday informed the exchanges that two of its subsidiaries – Kidopia and MediaWorkz – have around $7.8 million (Rs 64 crore) in SVB.
Another tech startup that tried to transfer funds from SVB on Friday got a wire transfer freeze. The founder told TOI that most of the investment and revenue was in the SVB account.
It is common for homegrown startups to incorporate in the US to receive capital from global VC firms, and the money raised is often pooled in SVBs. “About 90% of India’s SaaS (software-as-a-service) startups with a large customer base in the US, and also startups backed by Y Combinator (a well-known US startup accelerator), especially SVB’s is associated with,” a venture capital investor told TOI.
It is common for Indian startups to choose to incorporate in the US to receive capital from global VC firms, and the funds raised are often pooled in SVBs. This is more prevalent among SaaS firms whose customers are typically in the North American market. SaaS firms sell software in the form of online subscriptions, and India has been particularly strong in this segment, as it requires negligible investment in the customer market.
For these early-stage startups, SVB accounts typically hold the investments they raise. Their client revenue is mostly credited to Indian accounts for operating and salary expenses. However, larger and older SaaS companies have diversified their holdings, banking with several large banks.
Even as the US regulator shut down SVB on Friday night, several startups with deposits in the bank were keenly tracking developments. money in Indian Bank The accounts are only sufficient for 2-3 months of payroll and operations. Many are hopeful of a resolution by then.
TOI spoke to five startups that were alerted about the SVB crisis by their global investors on Friday morning, and while some of them have managed to withdraw their money, others are waiting for the US regulator to finalize plans. Eagerly waiting.
Prabhu Ramachandran, co-founder and CEO of real estate SaaS startup Facilio, said he has “a substantial portion” of his wealth with SVB. Ramachandran said, “We have money outside SVB to cover 4-5 months of our operations. This gives us enough time to resolve the crisis and utilize our funds in SVB.” “It all happened within 24 hours,” he said.
SaaS startup Rocketlane, which also had money in SVB, managed to get part of its money out in time. “Losing access to our funds for payroll is the last thing we were designed for as a startup. So it was a lot of chaos and confusion trying to do the right thing,” said Srikrishnan Ganesan, co-founder of Rocketlane. Said.
Gaming firm Nazara Technologies on Sunday informed the exchanges that two of its subsidiaries – Kidopia and MediaWorkz – have around $7.8 million (Rs 64 crore) in SVB.
Another tech startup that tried to transfer funds from SVB on Friday got a wire transfer freeze. The founder told TOI that most of the investment and revenue was in the SVB account.
,
- Advertisement -
