The debacle of Silicon Valley Bank (SVB) has shaken the start-up ecosystem in the world. As per media reports, nearly one lakh employees from 10,000 companies can be impacted. Multiple Indian start-ups backed by the YCombinator also found themselves in a dangerous position as their money is stuck in the vaults of SVB.
Amid the crisis, Rajeev Chandrasekhar, the Minister of State for Skill Development and Entrepreneurship in India, assured the founders that the government would help them to tackle the situation. Taking the issue to Twitter, Chandrasekhar said that he would meet the start-up companies and discuss the impacts of the SVB debacle and seek a way to stand by the companies.
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The @SVB_Financial closure is certainly disrupting startups across world .
Startups are an imp part of #NewIndia Economy.
I will meet wth Indian Startups this week to understand impact on thm n how @narendramodi govt can help durng this crisis.#IndiaTechade @PMOIndia pic.twitter.com/1HLTwAs9IF
The panic among the founders broke out after Gary Tan the chief executive officer (CEO) of YCombinator said in a CNBC interview that a part of its portfolio start-ups would not be able to pay their employees because of the unfortunate collapse of the bank.
However, it does not seem that the Indian start-ups will have a long-term problem as the Treasury Department of the US Government, Federal Reserve and Federal Deposit Insurance Corporation said that the depositors will get their money back by March 13.
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“Depositors will have access to all of their money starting Monday, March 13.”No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer,” all of the three bodies said in a joint statement.
Along with the payroll issue, the SVB incident triggered some other questions as well. Ashneer Grover, the former managing director of BharatPe, took a dig at the Indian venture capitalists (VCs) and said that he is eager to see the VCs losing their jobs.
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