Many start-ups backed by Y Combinator have exposure to SVB. Its collapse has already instilled fear among founders and management teams to look for safer havens for their remaining cash, which can trigger a bank run on every other smaller bank.īENGALURU: Days after Silicon Valley Bank (SVB) collapse, start-up accelerator Y Combinator, which has backed over 200 start-ups in India, has said that it will decrease the amount of late-stage investing, and will lay off 17 people or 20% from its team. ![]() Meanwhile, Sanjay Swamy, Managing Partner at Prime Venture Partners said, “All our companies banking with SVB have been able to move 100% of their money out of SVB to other US-based banks.”Įarlier in its petition, the start-up accelerator had said that Silicon Valley Bank’s failure has a real risk of systemic contagion. ![]() He also said that there shouldn’t be any noticeable effect on the companies that they have funded. So we’re going to decrease the amount of late stage investing we do.” ![]() But late-stage investing turned out to be so different from an early stage that we found it to be a distraction from our core mission. In recent years, we have also done some late stage investing. ![]() Garry Tan, president and CEO of Y Combinator, in a blog post, said, “Y Combinator is rightly known for early-stage investing. In the country, the start-up accelerator backs companies such as Razorpay and Meesho, among others.
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