According to the petition, one-third of the startups in the Y Combinator ecosystem are purportedly operating under a single account at the Silicon Valley bank.
Digital Desk: Silicon Valley Bank, a major bank in the United States, has gone out of business. The situation has deteriorated to the point where the bank's rupees have lost 100 billion dollars in just a few days. This bank used to fund all startups. Startups and investors are becoming increasingly concerned as a result of its collapse.
Yet, Y Combinator stated in a petition to the US government that approximately 10,000 small businesses with accounts at Silicon Valley Bank may be affected. Furthermore, it is probable that up to 1 lakh jobs could be lost, resulting in exceptionally high unemployment. This could have an influence on a few Indian startups.
Not only did 1 lakh people lose their employment as a result of the bank crisis, but their monthly paychecks may also be reduced, or the crisis may continue even after the money has been paid. According to the petition, one-third of the startups in the Y Combinator ecosystem are purportedly operating under a single account at the Silicon Valley bank. The petition was delivered to US Secretary of the Treasury Janet Yellen.
The Federal Deposit Insurance Corp, the regulator that took over the bankrupt banking on Friday, offered Silicon Valley Bank employees 45 days of employment at 1.5 times their salaries, according to an email obtained by Reuters.
The FDIC indicated in an email titled "Employee Retention" sent late Friday that employees will be enrolled and provided benefit information over the weekend, and that former parent firm SVB Financial Group (SIVB.O) would provide healthcare information. SVB had 8,528 employees at the end of the previous year.
According to the petition, the banking crisis is expected to harm more than 10,000 small enterprises and startups. On the other hand, if 10 individuals are given average employment, it is possible that 1 lakh people may lose their jobs.
At the same time, over 3,500 CEOs and co-founders of startups and small businesses, including PayO, SaveIN, and SalaryBook in India, have approved this initiative.
According to the NVCA, Silicon Valley Bank has over 37,000 small businesses with deposits totaling more than USD 250,000. But, the bank is no longer allowed to use this cash. The FDIC is in charge of it, and it will serve as receiver for a long time.
Leave A Comment