On March 10, banking regulators in the US took control of the Silicon Valley Bank (SVB), which typically catered to start-ups, venture capitalists, and tech firms, after it suffered a sudden collapse. The Joe Biden administration moved in quickly with the Federal Reserve, the US Treasury Department, and the Federal Deposit Insurance Corporation (FDIC) deciding to guarantee all deposits at SVB.
A number of industry stakeholders said while the immediate impact would be minimal because of the bailout, the change in sentiment may have some dampening effect on the entire tech industry for a while. Peter Bendor-Samuel, CEO at Everest Group, told The Hindu that given that the US was guaranteeing all deposits, the direct impact on the industry and Indian firms, “is likely to be modest.”
