US banks have wiped out over $100 billion from the stock market. And European banks have wiped out about $50 billion. Several companies that had deposited their money in Silicon Valley Bank Have lost share value due to this. Such as streaming device maker Roku Inc. Which reported that their deposits with this bank were largely uninsured. They lost about 10% of their share value. Y Combinator is a startup accelerator platform. Silicon Valley Bank was the default bank of Y Combinator. The startup founders who used this platform, Usually opened their accounts with SVB.
Several Indian startups and Indian founders were using this platform And had deposited their money with Silicon Valley Bank. This is very problematic for startups because unlike big companies most startups do not have multiple bank accounts across various banks. They use a single bank account. They are often very critical of their money Because they have to pay the employees, And bear the operational costs to run the startups. They are in dire need of funds.
Paytm founder Vijay Shekhar Sharma reveals how Silicon Valley Bank was among his first investors. The bank was one of the first investors of Paytm. They had earned a huge return on their investment of $1.7 million. Overall, its impact on the American and global economy is yet to be seen.
