1 year ago
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SINGAPORE — Compared to startups, Southeast Asia's task superior firms could spot a bigger interaction from the illness of Silicon Valley Bank due to the fact that uncovering a replacement for the U.S.-based slope successful the portion volition beryllium challenging.
"I deliberation from a VC firm's perspective, you volition spot a bigger interaction here," said David Gowdey, managing spouse astatine Jungle Ventures, told CNBC's "Squawk Box Asia."
"That's truly due to the fact that the section banks present aren't providing the aforesaid merchandise and services that SVB provides," Gowdey said Tuesday, adding that SVB was Jungle Ventures' superior bank.
While SVB served tech startups and task superior firms mostly located successful the U.S. oregon person a beingness successful the U.S. Some VCs based successful Southeast Asia — specified arsenic Jungle Ventures and Golden Gate Ventures — were besides clients of SVB.
The slope provided VC firms and startups entree to the U.S. superior marketplace arsenic good arsenic networking opportunities successful the U.S.
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SVB served and built a precise beardown merchandise offering for VC firms, said Gowdey, adding that Jungle Ventures volition present astir apt person to "look for a Big Four subordinate successful the U.S. to beryllium our partner."
In presumption of replacing immoderate of the features that SVB provides successful the U.S., it is "going to beryllium hard," said Vinnie Lauria, managing spouse astatine Golden Gate Ventures, connected CNBC's "Street Signs Asia" connected Tuesday.
"We were a lawsuit of SVB truthful we recognize the value-add precise well," said Lauria.
Lauria qualified that little than 1% of Golden Gate Ventures' full portfolio had banked with SVB. For those companies backed by Golden Gate that banked with SVB, they did not prosecute afloat banking services with the U.S. bank, helium said.
Only 2 companies successful Jungle Ventures' portfolio of much than 70 startups had vulnerability to SVB, said Gowdey.
"That was truly due to the fact that [these 2 companies] had operations successful the U.S.," helium added.
While the 2 companies had vulnerability to SVB, lone 1 had worldly exposure, said Gowdey, adding that the institution that faced worldly vulnerability had engaged SVB for payroll services.
As for startups successful Southeast Asia, VC firms accidental they will not apt beryllium deed by the contagion from the illness of Silicon Valley Bank.
"The world is, present successful Southeast Asia, a batch of the startups were truly buffered. Most did not slope with Silicon Valley Bank," said Lauria from Golden Gate Ventures.
"So the world is, Southeast Asia is already precise isolated from what was happening successful Silicon Valley," helium said.
