Shyam Maheshwari, founder of Nextinfinity Management Pte Ltd, a family office based in Singapore, has a rich history in the investment industry. His background includes serving as the Chief Executive Officer, Founder, and Partner of SSG Capital Management (Singapore) Pte. Limited, where he was primarily responsible for SSG’s investment activities in India. With 22 years of experience in deal sourcing, analysis, and investing, Mr. Maheshwari offers valuable insights into the world of finance.
Recently, headlines were dominated by the demise of Silicon Valley Bank (SVB). Shyam Maheshwari, without delving into the historical factors leading to this occurrence or how it could have been prevented, emphasized the importance of institutions like SVB.
Having experienced the collapse of his first employer, Lehman Brothers, Mr. Maheshwari can empathize with the employees, customers, depositors, and vendors affected by SVB's downfall. He noted, 'Getting emails on updates on funding situations of portfolio companies from Venture Funds shows the widespread influence of SVB. It may feel like desperation and exasperation today, but it is also a testimony of the deep impact SVB has on the start-up ecosystem.'
According to this seasoned financial expert, early-stage companies and founders face a challenging path. Besides having great ideas, they must secure resources (funding from angel investors or venture capitalists) and inspire a team to support their vision. SVB specialized in catering to the banking and financial needs of these emerging businesses. Its services ranged from the basics, such as opening bank accounts, to more advanced offerings like overdraft facilities, letters of credit, cash management, term loans, bridge loans, structured equity solutions, and advisory services.
Mr. Maheshwari stressed, 'This provided the strategic support to startups in their journey to become valuable companies as they left their mark on the sands of time. Contrast this with entering the doors of big established institutions in your countries as the founder of a startup – one can easily imagine the reception one would get and the inflexibility one would face from institutions that have their origins in supporting established businesses.' Established institutions often lack an understanding of the startup ecosystem and may even display contempt or provide dismissive remarks.
While acknowledging that SVB could have made different choices, Shyam Maheshwari ssg highlighted the significant role it played in the startup ecosystem. From serving venture capitalists to founders, from offering overdrafts to loans, from balance sheet lending to advisory services, SVB was indeed unique, and its absence will be felt for some time to come. He concluded by expressing hope that someone will be inspired by SVB's legacy to start another institution that can help startups fulfill their dreams."
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