SVB Debacle: Ashneer Grover Is Eager To See VCs Losing Jobs

Updated on: 13 March 2023 7:55 pm

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Start-Ups Based In India Should Resist Investor Pressure To Domicile Outside: Mohandas Pai Photo: Pai advised founders of India-centric startups "to be careful" and "not get carried away" by investors who force companies they fund, to domicile in the US and open bank accounts there as well. Pai said Silicon Valley Bank was a start-up-friendly bank and its collapse is a "blow" to the start-up ecosystem

Former BharatPe co-founder Ashneer Grover took a dig at the venture capitalists ( VCs) after the collapse of the Silicon Valley Bank in the United States. The former managing director (MD) of BharatPe said that he is waiting to see how many VCs would lose their jobs because of the incident.

Taking the issue to Twitter, Grover said that VCs are not the founders of companies and they do not deploy their own money to the start-ups. He also added that the VC space in India needed a ‘clean up’ for a long.

"Eager to see how many VCs lose their jobs (yes they do jobs - are not founders and it's not their own money that they deploy) in the aftermath of SVB. VC space needed a cleanup for a long. Ab number aayega inka - too stupid people have made too much easy money in VCs doing nothing," Ashneer wrote on Twitter.

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Grover’s tweet grabbed a few reactions within a short stint. Some were seen to agree with him, while some confronted him.

Sunil Yadkikar, the chief executive officer (CEO) of Atmanirbhar Ventures Private Limited said that it is important to evaluate the VC space after the SVB crisis.

"The SVB bank failure highlights the need for a thorough evaluation of the VC space and the role it plays in the startup ecosystem. The moment has come for industry-wide improvements to the system," he added.

The Silicon Valley Bank collapsed on Friday. As per media reports, more than 60 per cent of start-ups, backed by YCombinator, have their deposit stuck in the SVB. However, the Treasury Department of the US government, the Federal Reserve and the Federal Deposit Insurance Corporation confirmed that the depositors will get the money back by March 13th.