Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Netanyahu: If Lebanese Army takes steps to disarm Hezbollah, Israel will engage in reciprocal measures, including phased reduction of Israeli military presence in Lebanon
Al Mayadeen's correspondent: Photojournalist Houssam Al-Masri martyred, reporters Hatem Omar, Mohammad Ashraf Salameh injured in Israeli strike on Nasser Medical Complex.
Israeli media: Intense US efforts are being made to resolve differences, such as the issue of the Israeli presence on Mount Hermon and in southern Syria
Israeli media: The security agreement means amending the disengagement agreement, which will also address the Druze issue
Israeli media: Attempts to reach a security agreement between 'Israel' and Syria were among the topics discussed at the Paris meeting
Israeli media: Sheikh Muwaffaq Tarif rejected a US proposal to join the recent tripartite meeting between Tom Barrack, al-Shaibani, and Dermer
Saba News Agency: Two martyred, five injured in a preliminary toll of the Israeli aggression on the Yemeni Oil Company station on Al-Sitteen Street in Sanaa
Senior Yemeni military source to Al Mayadeen: We observed a state of confusion among the enemy's aircraft squadron after Yemeni air defenses intercepted the attack
Senior Yemeni military source to Al Mayadeen: The Yemeni air defense forces succeeded in neutralizing a squadron of enemy aircraft and prevented airstrikes on some governorates
Senior Yemeni military source to Al Mayadeen: Our air defenses and missile forces forced a formation of enemy aircraft to flee the airspace

SVB crash a lesson and reminder for Asia to distrust US financing

  • By Al Mayadeen English
  • Source: Agencies
  • 14 Mar 2023 16:01
4 Min Read

India's minister of state for technology, Rajeev Chandrasekhar, says that the crash should serve as a lesson to local startups who should trust India’s banking system more. 

  • x
  • SVB crash
    The logo of the Silicon Valley Bank under cracked glass. (Reuters)

The crash of Silicon Valley Bank rattled the confidence in Asian start-ups overly reliant on US tech financing, which Wang Guanyan, an executive of a China-based startup that develops virtual-reality games, described as a reminder to "review our reliance on investment from the US".

“Still, for small companies like us, we probably don’t have the luxury to be picky about who we take money from, especially with the challenging macro conditions,” Wang stated, adding that his company intended to transfer their deposits from SVB back to China.

Following the collapse, “those startups lose an important financing channel and need to find other ways to raise money, especially from US dollar funds,” said Xinyao Wang, a healthcare equity analyst.

With SVB having branches in Beijing, Shanghai, and Hong Kong, it headed a delegation of US-based venture capitalists to China in 2004 to look into investment opportunities with Chinese entrepreneurs.

At least 12 Hong Kong-based companies confirmed that they have banked with SVB, and many said the money they had with Silicon Valley Bank was immaterial, meaning it did not hold much importance. 

BeiGene Ltd., a biotech company for cancer treatment drugs, is one of those firms which holds an uninsured equivalent of around $175.5 million in cash. It said that it doesn't anticipate the recent collapse to affect its operations much, as it spread its investments with other financial institutions such as JPMorgan Chase & Co. and Morgan Stanley.

A lesson to trust home banks more

Related News

China blasts Hegseth, calls US top 'troublemaker' in Asia-Pacific

Global military spending hits record $2.7tn amid global conflicts

In India, the country's Minister of State for Technology, Rajeev Chandrasekhar, tweeted on Monday that the crash should serve as a lesson to local startups who should trust India’s banking system more. 

Read next: India's SVC not US' SVB: Name confusion creates chaos, instigates fear

“You need the certainty of having money in the bank,” said Srikrishnan Ganesan, the India-based co-founder and chief executive of software startup Rocketlane, which was founded in 2020 and kept between 16% and 17% of its US cash in SVB for its American staff.

Luckily, Ganesan transferred his funds to another bank last week right before the SVB crisis. He expressed that a lesson he learned was not to center too much capital in one institution or to rely on one specific supplier. 

Jensen Ye, the co-founder of a startup that provides blockchain encryption services, said he deposited $7 million from a US-based fund in December with SVB. The startup, originally founded in China and is now in Singapore, intended to use the funds to pay for staff and expand his business, but has now asked colleagues to seek two bigger banks to deposit the money.

“I didn’t even think that it was unsafe that we put all our eggs in one basket, because I felt like it was a concrete basket,” he said.

Sign of the times 

In light of the fresh closure of Silicon Valley Bank and Signature Bank, former US president Donald Trump announced that this was a sign of the times of economic downfall in the US.

"Two big banks yesterday closed, that's a bad sign, that could be the beginning," he stated, referring to the banks' collapse.

America's 16th-largest bank has seen 60% of its shares plunging on Friday, making it the second largest bank failure in US history following the great market collapse of 2008, prompting regulators to seize its assets and halt trade on its stocks in Nasdaq, AP reported on Saturday.

  • Asia
  • China
  • start ups
  • Silicon Valley bank
  • SVB

Most Read

Tom Artiom Alexandrovich, executive director of the defense division of the Israeli National Cyber Directorate, undated (Social media)

Israeli-born US prosecutor drops Israeli officer child sex crime

  • Politics
  • 19 Aug 2025
Displaced Palestinians walk through a makeshift camp along the beach in Gaza City, Sunday, Aug. 10, 2025 (AP)

Hamas, other factions accept Egypt-Qatar ceasefire proposal: Exclusive

  • Politics
  • 18 Aug 2025
Palestine will not be liberated by UN reports, but by pursuing a different strategic horizon: one that does not beg for recognition. (Al Mayadeen English; Illustrated by Batoul Chamas)

Economy of Genocide: Albanese's report accuses, but doesn't dismantle system

  • Opinion
  • 18 Aug 2025
Israeli soldiers stand on the top of armoured vehicles parked on an area near the Israeli-Gaza border, as seen from southern Israel, Wednesday, Aug. 20, 2025 (AP)

Palestinian fighters target Israeli soldiers, vehicles in Gaza

  • Politics
  • 21 Aug 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
Israeli Prime Minister Benjamin Netanyahu speaks during a press conference at the Prime minister's office in al-Quds, Occupied Palestine, Sunday, Aug. 10, 2025 (AP)
Politics

Netanyahu deliberately derailing truce with Gaza occupation: Hamas

Irish President Michael Higgins arrives to deliver his speech during a 42nd World Food Day celebration at FAO headquarters in Rome, on Oct. 16, 2023. (AP Photo/Alessandra Tarantino)
Politics

Irish president renews call for UN military intervention in Gaza

US Ambassador to Turkey and Special Envoy to Syria Tom Barrack speaks during an interview with The Associated Press at the US Embassy in Aukar, northern suburb of Beirut, Lebanon, Monday, July 21, 2025 (AP)
Politics

US envoy, Netanyahu discuss restraining attacks on Lebanon, withdrawal

Smoke billows following Israeli airstrikes in multiple areas in Sanaa, Yemen, Sunday, Aug. 24, 2025 (AP)
Politics

Ansar Allah vow sustained Gaza support despite Israeli strikes

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS