Silicon Valley Bank collapse: extinction level event for startups, says YC president Garry Tan

Garry Tan, president at Silicon Valley-based Y Combinator, stated the collapse of Silicon Valley Bank (SVB) within the US is an ‘extinction degree occasion’ for startups and can set startups and innovation again by 10 years or extra.

Y Combinator, popularly generally known as YC, has been an early investor in companies like Stripe, Airbnb and others. Its portfolio companies work carefully with the SVB which has now been taken over by the US authorities. Razorpay, Zepto, Meesho are amongst its greatest India portfolio companies.

“BIG TECH will not care about this. They have cash elsewhere. All little startups, tomorrow’s Google’s and Facebooks, will be extinguished if we don’t find a fix, ” Tan tweeted because the news broke in regards to the faliure of SVB.

ETtech In-depth: Silicon Valley Bank meltdown places Indian SaaS companies on alert

“30% of YC companies exposed through SVB can’t make payroll in the next 30 days. If you or your company are affected, I recommend that you reach out to your local congressman to get this on their radar TODAY. Now,” Tan added in his tweet thread.

He instructed startup founders and executives to achieve out to the federal government in search of assist from them.

“If you’re affected, here’s what I would say: Hi, I’m a constituent in your district. I work at X, a startup that has deposits with SVB, which was shut down this morning.. We won’t be able to make payroll and we are one of thousands of startups that would have to shut down or furlough workers NEXT WEEK.,” he tweeted citing it for example.

“We need the FDIC’s help and the government’s help to make sure American tech industry is not set back by a decade, and we can save thousands of workers jobs, including mine.”

ETtech Explainer: how rising US rates of interest triggered a pincer motion on Silicon Valley Bank

Tan’s feedback are of significance because it underscores the character of the disaster unfolding amid startups within the Valley.

ET reported on Friday saying Indian SaaS companies have been placed on alert for the reason that SVB inventory began crashing earlier this week. Indian buyers and founders have been making an attempt to maneuver out deposits from the financial institution to derisk themselves.

Also learn | How Silicon Valley Bank served the tech trade and past

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