Former BharatPe MD Ashneer Grover calls for VC industry clean up
Examining the aftermath of SVB's collapse and the future of the VC ecosystem: insights from Ashneer Grover and industry experts
13 March 2023
|
Kunal Tyagi
Startups and investors are in a panic following Silicon Valley Bank's (SVB) collapse.
The function of VCs in the startup ecosystem has been a topic of discussion since Ashneer Grover's comments.
The mishap emphasizes the need for a far more transparent and accountable VC industry.
Shockwaves have been sent across the global startup community following the recent failure of the Silicon Valley Bank (SVB). The California-based bank had been a significant lender to American entrepreneurs since the 1980s, when it had risen to become the 16th-largest US bank by assets, with $209 billion in assets and around $175.4 billion in deposits. Several startups and purchasers are in a state of panic as a result of its abrupt shutdown.
Ashneer Grover, co-founder and former MD of the Indian fintech business BharatPe, responded to the news by mocking venture capitalists (VCs) on Twitter. He recalled being curious to see how many VCs would lose them following SVB's demise. Grover also asserted that the venture capital (VC) sector had long required a "clean up" and that "too many dull people have made too much convenient money in VCs doing nothing."
Apply to Xartup Fellowship Program
Get ₹1.5 Crore Technical Funding
On the function of VCs in the startup ecosystem, Grover's comments have aroused discussion. While some contend that venture capitalists (VCs) serve a key role in helping entrepreneurs obtain finance and education, others think that many VCs are earning quick money, including many of the expenditures associated with the firms they invest in.
The collapse of SVB is likely to have a significant impact on Indian startups as well. SVB has in the past provided capital to a large number of Indian firms, including Payhave. Vijay Shekhar Sharma, the CEO of Paytm, stated on Twitter that SVB had left Paytm in the past with a sizable return on their investment.
In general, the collapse of SVB has brought attention to the need for a more transparent and responsible VC environment. Entrepreneurs and customers should be more careful when choosing their venture capitalists, and VCs should be more accountable when making investment decisions. Although the effects of SVB's collapse are likely to be felt for some time, they should eventually result in a more developed and long-lasting startup environment.
Startup news delivered to your mail
Recommended for you
Budget 2023: Did it Live up to the Startup Ecosystem's Hopes?
Byju’s, Once Valued at $22 Billion, Faces Insolvency Proceedings
Budget 2024: FM Nirmala Sitharaman Abolishes Angel Tax to Boost Startups