SANTA CLARA, CA, US – MARCH 13: Individuals wait exterior the Silicon Valley Bank headquarters in Santa Clara, CA, to withdraw funds immediately after the federal govt intervened upon the bank’s collapse, on March 13, 2023. (Photograph by Nikolas Liepins/Anadolu Agency through Getty Photographs)
Nikolas Liepins | Anadolu Agency | Getty Images
The collapse of U.S.-centered Silicon Valley Lender is unlikely to hit fundraising for tech startups in Southeast Asia, venture capitalists and an analyst told CNBC.
The bank served numerous undertaking capital corporations and venture money-backed startups. But final week depositors rushed to withdraw their resources as panic above the bank’s economic predicament unfold, triggering it to collapse.
“I believe [the impact on fundraising is] a observe out, but I don’t consider that contagion spreads,” claimed David Gowdey, managing partner at Southeast Asian venture cash agency Jungle Ventures, on CNBC’s “Squawk Box Asia” on Tuesday.
“I assume Secretary Yellen and the government did a superb career of stepping in and using absent a ton of that danger, developing a large amount of security in the markets,” he said. On Sunday, U.S. officials including Treasury Secretary Janet Yellen announced designs to backstop depositors of the financial institution.
Gowdey said SVB was the firm’s primary lender, but extra, “We pull a good deal of that dollars into Southeast Asia, into Singapore banking institutions. And so for us, the exposure to SVB was not massive.”
Golden Gate Ventures, which also invests in Southeast Asian startups, claimed the SVB fallout is an option for the area.
“This has really been helpful to Southeast Asia. It now appears to be like a golden little one to U.S. investors. Buyers are setting up to say: I want to diversify to various financial institution accounts, distinctive geographies, distinct currencies,” Vinnie Lauria, running lover at Golden Gate Ventures, informed CNBC’s “Avenue Signals Asia” on Tuesday.
“And this is where Southeast Asia has the time to shine, in mild of the predicament,” added Lauria.
When asked if the problem would make fundraising far more complicated, Gowdey mentioned resources in Southeast Asia are effectively capitalized.
“I assume it is getting selective since of the macro environment. [Accessing] the cash will get more challenging, but the capital is there and it is getting deployed,” claimed Gowdey.
VC firms earlier informed CNBC that financial uncertainties have manufactured them pickier with investments in 2023.
“[In terms of] entry to cash to tech entrepreneurs, the VCs will nevertheless be equipped to fund them,” Ray Wang, founder and chairman of Silicon Valley-based mostly Constellation Analysis, informed CNBC’s “Avenue Indications Asia” on Tuesday.
“But it is the problem about taking lender financial loans, owning working funds, becoming ready to essentially run operations and acquiring a lender that understands how a technologies firm is effective or biotech organization functions. That’s actually what’s currently being dropped below,” additional Wang.
