Amid the Silicon Valley Bank stock crash, there is state of panic amongst many investors and startup Founders. Under the given situation, many SaaS businesses in India with operations based in US are drawing funds and transferring them to neobanks and other international banks.
The SVB Financial Group, parent of Silicon Valley Bank’s announced on March 8 that it was raising approximately $21 bn securities in a share sale. Also, this would lead to an after-tax loss worth $1.8 bn in the first quarter. A B2B SaaS Founder who wish to remain anonymous said,” While we do not have major exposure, we are just proactively transferring funds to other banks only, so it doesn’t become a situation where we won’t be able to make regular working capital payments.”
Although Silicon Valley Bank is still a reliable bank for startup founders and investors out there, there is a fear in the industry of funds getting blocked in the short to mid-term. Following the SVB stock crash news, many global and neobanks like Mercury Banks have seen a rise in demand!