SANTA CLARA, CA, US – MARCH 13: People wait outside the Silicon Valley Bank headquarters in Santa Clara, CA, to withdraw funds after the federal government intervened in the bank’s collapse, on March 13, 2023. (Photo by Nikolas Liepins/Anadolu Agent via Getty Images)
Nikolas Liepins | Anadolu agent | beautiful pictures
Venture capitalists and an analyst told CNBC that the collapse of the US-based Silicon Valley Bank is unlikely to affect raising capital for tech startups in the East South Asia.
The bank has served many venture capital firms and venture capital-backed startups. But last week, depositors rushed to withdraw as panic over the bank’s financial situation spread, causing it to collapse.
“I think [the impact on fundraising is] be careful, but I don’t think the contagion will spread,” David Gowdey, managing partner at Southeast Asian venture capital firm Jungle Ventures, said on CNBC.Asian Squawk Box” on Tuesday.
“I think Secretary Yellen and the government have done a great job of intervening and removing a lot of that risk, creating a lot of stability in the market,” he said. On Sunday, US officials including Treasury Secretary Janet Yellen announced bank depositor containment scheme.
Gowdey said SVB is the company’s main bank, but added, “We pull a lot of money into Southeast Asia, into Singapore banks. And for us, the exposure to SVB isn’t great.”
Golden Gate Ventures, which also invests in startups in Southeast Asia, said the demise of SVB was an opportunity for the region.
“This is really helpful for Southeast Asia. Now it’s like a golden baby for US investors. Investors are starting to say: I want to diversify into different bank accounts, different geographies, different currencies,” Vinnie Lauria, managing partner at Golden Gate Ventures, told CNBC.Asian street signs” on Tuesday.
“And this is where Southeast Asia has time to shine, given the circumstances,” added Lauria.
When asked if the situation makes fundraising more difficult, Gowdey said funds in Southeast Asia are well-capitalized.
“I think it’s selective because of the macro environment. [Accessing] capital is going to get harder, but the capital is still there and it’s being rolled out,” Gowdey said.
VC firms have previously told CNBC that economic uncertainties have made them more picky about investments in 2023.
“[In terms of] access to capital for tech entrepreneurs, VCs can still fund them,” Ray Wang, founder and president of Silicon Valley-based Constellation Research, told CNBC.Asian street signs” on Tuesday.
“But it’s a question of getting a bank loan, having working capital, being able to actually run the operation, and having a bank that understands how a tech company or a biotech company works. really what is being lost here,” added Wang.
