The recent collapse of Silicon Valley Bank is now the second biggest
bank collapse in U.S. history. This collapse is potentially holding
hundreds of millions of dollars from hundreds of Indian startups that
have accounts with the bank, including investments in over 20
startups in India such as Paytm, Movie Carwale, Bluestone, and many
more. In 2022, the bank had an annual revenue of 7.4 billion dollars.
On March 8th, a series of events started to cause havoc in the
ecosystem. This included a collapse of FTX, 100k tech layoffs, an
economic recession, and the shutdown of Silver Gate. It seemed like
all hell was breaking loose. When Silicon Valley Bank announced that
they were having a liquidity crunch and would be selling some of their
MPS and doing a capital raise, this shook the ecosystem even further.
Even though the bank's liquidity problem was not that dire, investors
panicked and reacted. This collapse will hit India's GDP hard and will
directly impact the families of Indian developers as their salaries will
be frozen. This will slow down growth and cause further layoffs, as
American investors may stop investing in India. The issue of people
not trusting banks is significant in itself.
bank collapse in U.S. history. This collapse is potentially holding
hundreds of millions of dollars from hundreds of Indian startups that
have accounts with the bank, including investments in over 20
startups in India such as Paytm, Movie Carwale, Bluestone, and many
more. In 2022, the bank had an annual revenue of 7.4 billion dollars.
On March 8th, a series of events started to cause havoc in the
ecosystem. This included a collapse of FTX, 100k tech layoffs, an
economic recession, and the shutdown of Silver Gate. It seemed like
all hell was breaking loose. When Silicon Valley Bank announced that
they were having a liquidity crunch and would be selling some of their
MPS and doing a capital raise, this shook the ecosystem even further.
Even though the bank's liquidity problem was not that dire, investors
panicked and reacted. This collapse will hit India's GDP hard and will
directly impact the families of Indian developers as their salaries will
be frozen. This will slow down growth and cause further layoffs, as
American investors may stop investing in India. The issue of people
not trusting banks is significant in itself.
