Mr. Shyam Maheshwari is Founder of Nextinfinity Management Pte Ltd,. a Family Office, based in Singapore focused on long term strategic investments to support entrepreneurs in their journey. Shyam Maheshwari is also co-founder of SSG Capital Management, one of the largest special situations and credit-focused investment houses in Asia-Pacific. Shyam Maheshwari in his latest article shares thought on the fragility of banks reflecting on what happened to the Silicon Valley Bank.
“The headlines recently are crowded with the demise of Silicon Valley Bank (SVB). Without going into the history of why this happened, and how could it be avoided, I would like to make a case for the need for such an iinstitution. Paradoxically, only 10 days ago, when asked where I see opportunities in Asia, I suggested to someone that there is a need for Asian version of Silicon Valley Bank. Obviously, since the SVB demise, the sarcastic emojis I received from him on WhatsApp was understandable. It is ironic that the inspiration of my suggestion has become desperation for the customers for whom SVB was founded” he explained.
Having lived through the demise of his first employer, Lehman Brothers, he could empathize with employees, customers, depositors and vendors of SVB. Getting emails on updates on funding situations of portfolio companies from Venture Funds shows the widespread influence of SVB. According to Shyam Maheshwari SSG, what may feel like desperation and exasperation today, will also be a testimony of the deep impact SVB has on the start-up ecosystem.
SVB was an institution that specialized in catering to banking and financial needs of these companies. SVB services spanned from simple steps of opening their bank accounts, to providing overdraft facility, letter of credit, cash management, etc. to more sophisticated products such as term loans, bridge loans, structure equity solutions and advisory. – This provided the strategic support to start up in their journey to become valuable companies while they make their mark on sands of times, Shyam Maheshwari added.