Union Minister of State for Electronics and IT, Rajeev Chandrasekhar held a virtual meeting with over 100 startups and venture capitalists (VCs) on Tuesday to address concerns about the collapse of Silicon Valley Bank (SVB) in the US. Chandrasekhar assured startups that the Indian government is "laser focused" on helping them navigate through the current global banking crisis.
Government Encourages Startups To Use Indian Banking System
During the meeting, Chandrasekhar emphasized that the Indian banking system is trusted and robust, and urged startups to start using it. The minister discussed key issues related to the collapse of SVB and shared how the Modi government is committed to ensuring that every startup navigates through this storm.
Among the startups that participated in the meeting were innovative analytics platform Hatica, no-code business intelligence tool Tersho, and new age investment platform Zoth. VC and financial services firms such as Blume Ventures, Truly Financial, and Mirae Asset were also in attendance.
Concerns for Indian Startups
The SVB collapse has left the Indian startup ecosystem worried. According to reports, more than 1,000 Indian startups may have exposure to the bank. Recent data by global software-as-a-service-based market intelligence platform Tracxn showed that SVB had exposure in at least 21 startups in India, although the size of the investment in these startups was not revealed.
Top VC firms also issued a joint statement on the collapse of SVB, one of the largest US banks serving the global startup community. They expressed their disappointment and concern over the situation.
US President Joe Biden Addresses Concerns
US President Joe Biden addressed concerns over the Silicon Valley Bank collapse on Monday, vowing to protect depositors' money and fire the bank management. He reassured small businesses across the country that their deposits will be safe and that they will be able to pay their workers and bills.
Assurance From The Indian Government
The Indian government's assurance to startups comes as a relief to the startup community, which has been grappling with the fallout from the SVB collapse. Chandrasekhar's reassurance that the government is committed to supporting startups and helping them navigate through this difficult time will be crucial in building trust and confidence in the Indian startup ecosystem.