Shyam Maheshwari’s Perspective on Silicon Valley Bank’s Closure and the Necessity of Such an Institution

Mr. Shyam Maheshwari, the Founder of Nextinfinity Management Pte Ltd, a Family Office based in Singapore dedicated to long-term strategic investments in support of entrepreneurs on their journey. Prior to this role, he held the position of Chief Executive Officer, Founder, and Partner at SSG Capital Management (Singapore) Pte. Limited, where he was primarily responsible for overseeing SSG’s investment activities in India. With 22 years of experience in deal sourcing, analysis, and the investment industry, Mr. Maheshwari brings a wealth of expertise to his endeavors.

Recent headlines have been dominated by the unfortunate demise of Silicon Valley Bank (SVB). Without delving into the historical reasons for this occurrence or how it could have been prevented, Shyam Maheshwari has emphasized the need for such an institution. Having personally experienced the collapse of his first employer, Lehman Brothers, he can readily empathize with the employees, customers, depositors, and vendors of SVB.

Shyam Maheshwari notes, “Receiving updates on the funding situations of portfolio companies from Venture Funds highlights the profound influence of SVB. While it may feel like a time of desperation and exasperation, it also stands as a testament to the profound impact SVB has had on the startup ecosystem.”

According to this financial expert, early-stage companies and founders face a challenging path. Beyond having innovative ideas, they must secure resources (angel or VC funding) and inspire a team to share in their vision. SVB was an institution that specialized in addressing the banking and financial needs of these companies, providing services ranging from basic tasks like opening bank accounts and offering overdraft facilities, letters of credit, and cash management to more sophisticated offerings such as term loans, bridge loans, structured equity solutions, and advisory services.

“This strategic support was instrumental in guiding startups on their journey toward becoming valuable companies while leaving their mark on the sands of time,” Mr. Maheshwari remarked. In contrast, approaching established institutions as the founder of a startup often means facing inflexibility and a lack of understanding, which can lead to off-handed dismissals of innovative ideas. The assessments made by these institutions are frequently biased, obscuring the founder’s vision.

While acknowledging that SVB could have taken different actions, Shyam Maheshwari ssg, recognizes the pivotal role it played in the startup ecosystem. From venture capitalists to founders, from overdrafts to loans, from balance sheet lending to advisory services, SVB was an indispensable entity. Its absence will be felt for some time to come. Mr. Maheshwari concluded by expressing hope that someone will be inspired by SVB and endeavor to establish a new institution that can continue to nurture the dreams of startups.