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Venture capitalists say SVB outcome unlikely to impact fundraising for startups in Southeast Asia

TechTechnologyVenture capitalists say SVB outcome unlikely to impact fundraising for startups in Southeast Asia
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SANTA CLARA, CA, US – MARCH 13: People wait to withdraw funds outside the Silicon Valley Bank headquarters following the federal government’s intervention over the bank collapse on March 13, 2023 in Santa Clara, CA. (Photo by Nicolas Lepins/Anadolu via Getty Images)

Nicolas Lepins | Anadolu Agency | Getty Images

The collapse of US-based Silicon Valley Bank is unlikely to dampen fundraising for tech startups in Southeast Asia, venture capitalists and an analyst told CNBC.

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The bank served several venture capital firms and venture capital-backed startups. But last week, depositors rushed to withdraw their money as panic spread over the bank’s financial health, causing it to collapse.

“I think [the impact on fundraising is] A watch out, but I don’t think the contagion spreads,” David Goude, managing partner at Southeast Asian venture capital firm Jungle Ventures, told CNBC.Squawk Box Asia” on Tuesday.

“I think Secretary Yellen and the government have done a fantastic job of bringing a lot of stability to the market and removing some of that risk,” he said. On Sunday, US officials including Treasury Secretary Janet Yellen announced Bank plans to backstop depositors,

Goude noted that SVB was the firm’s primary bank, but added, “We draw a lot of money into Singapore banks in Southeast Asia. And so for us, the exposure to SVB was not large.”

Golden Gate Ventures, which also invests in Southeast Asian startups, said the SVB decline is an opportunity for the region.

“It has been really helpful for Southeast Asia. It looks like a golden child for US investors now. Investors are starting to say: I want to diversify across different bank accounts, different geographies, different currencies. bring,” Vinny Lauria, managing partner at Golden Gate Ventures told CNBC”Street Signs Asia” on Tuesday.

“And this is where the light of the situation in Southeast Asia has time to shine,” Lauria said.

Asked if the situation makes fundraising more difficult, Goude said the money is well capitalized in Southeast Asia.

“I think it’s selective because of the macro environment. [Accessing] Capital will be hit hard, but capital is there and it is being deployed,” Goude said.

VC firms previously told CNBC that Economic uncertainties make them a better pick to invest in 2023,

,[In terms of] access to capital for tech entrepreneurs, VCs will still be able to fund them,” Ray Wang, founder and president of Silicon Valley-based Constellation Research, told CNBC.Street Signs Asia” on Tuesday.

“But it’s a question about getting a bank loan, having operating capital, actually being able to operate and having a bank that understands how a technology company works or a biotech company works. It’s really getting lost here. has been,” Wang said.

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