Mr. Shyam Maheshwari is Founder of Nextinfinity Management Pte Ltd,. a Family Office, based in Singapore focused on long term strategic investments to support entrepreneurs in their journey. In addition, Shyam Maheshwari SSG Capital Management co-founder, one of the major investment firms in Asia-Pacific that specialises in credit and exceptional situations. In his most recent post, Shyam Maheshwari presents ideas on the vulnerability of banks while considering what happened to the Silicon Valley Bank.
“Recently, the downfall of Silicon Valley Bank (SVB) has dominated the news. Without delving into the reasons why this occurred or how it may have been prevented, I would like to argue that such an institution is necessary. Ironically, just ten days ago, when someone asked me about potential in Asia, I said that there was a need for an Asian equivalent of Silicon Valley Bank. The sarcastic emojis he sent me on WhatsApp were comprehensible given the loss of SVB. Ironically, the desperation of the clients for whom SVB was formed served as the inspiration for my proposition, he said.
He could identify with the SVB staff, clients, depositors, and suppliers because he had witnessed the collapse of his first employer, Lehman Brothers. Receiving emails from Venture Funds with updates on the funding status of portfolio firms demonstrates SVB’s broad reach. According to Shyam Maheshwari, what may seem like helplessness and frustration right now will also serve as evidence of the profound influence SVB has on the environment for start-up businesses.
SVB was a company that specialised in serving these businesses’ banking and financial needs. SVB’s services ranged from basic actions like creating bank accounts to more complex ones like term loans, bridge loans, structure equity solutions, and advisory. They also offered overdraft facilities, letter of credit services, cash management, etc. Shyam Maheshwari continued, “This gave them the strategic support to start up in their journey to become valuable companies while they make their mark on the sands of time.”