Key Points
The shutdown of Silicon Valley Bank couldn't have been at a worse time for startups who are already finding it difficult to cope with funding winter..
SVB the 16th largest bank in the US was a friend in need of startups looking to raise funds..
By end of the December 2022 quarter, overall, in SVB's deposit funding --- early-stage technology sector (tech startups) accounted for the most weight at 29%, followed by the technology sector at 20%, while international at 18%, US global fund banking at 14%, early-stage life science/healthcare at 8%, and private banks at 7%, as per JP Morgan report..
According to Karan Desai - Founder of Interface Ventures, the funding winter for startups in India had become a reality prior to the recent announcement of Silicon Valley Bank, along with some other US banks going bust..
This is the basis of the realisation that this will be a year of survival and bootstrapping, as opposed to hypergrowth. . Further, he added that the funding void left by large foreign banks can be filled to some extent by Indian NBFCs that focus on providing structured funding to new-age companies..
