Explained: Why the fall of Silicon Valley Bank matters to India

The collapse of the Silicon Valley Bank has grabbed international headlines. By itself, the bank is quite small. It is a regional bank based out of California and it was the 16th largest bank in the US before the crash.

The bank is a trendsetter – it funds start-ups and venture capitalists. This segment formed a big part of its loan portfolio -- in December 2022, 56 per cent of its loans were to VCs and PEs secured by their limited partners. This is pretty unique for a bank, isn’t it?

A bank collapsing is never good news, and that always generates interest. But, SVB’s collapse is only about this alone. What’s going on here?

Hello and welcome to a new episode of businessline podcasts’ news explained. In this podcast, Nivedita Varadarajan speaks to Hamsini Karthik, businessline’s Senior Assistant Editor, to understand the fall of the Silicon Valley Bank and how this Californian bank’s collapse it could impact start-ups here in India.

Listen in!

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