Shyam Maheshwari – The financial expert comments on the fragility of banks with reference to Silicon Valley Bank

Mr. Shyam Maheshwari is the founder of Nextinfinity Management Pte Ltd, a Singapore-based Family Office focused on long-term strategic investments to help entrepreneurs along their path. Shyam Maheshwari is also a co-founder of SSG Capital Management, one of Asia-Pacific’s major special circumstances and credit-focused investment firms. Shyam Maheshwari’s newest post reflects on the fragility of banks and what happened to Silicon Valley Bank.

The demise of Silicon Valley Bank (SVB) has recently dominated the news. Shyam Maheshwari make a case for the need for such an institution without getting into the history of why this happened and how it could have been avoided. “Surprisingly, only 10 days ago, when asked where I see prospects in Asia, I indicated that an Asian counterpart of Silicon Valley Bank is needed. Since the death of SVB, the mocking emoticons I received from him on WhatsApp were reasonable. It’s ironic that the inspiration for my suggestion has turned out to be desperation for the customers for whom SVB was founded,” he remarked.

Shyam Maheshwari

Having witnessed the failure of his first company, Lehman Brothers, he could sympathise with SVB’s employees, customers, depositors, and vendors. Receiving emails from Venture Funds with updates on the funding status of portfolio firms demonstrates SVB’s vast reach. According to Shyam Maheshwari ssg, what appears to be desperation and irritation today will be a testament to SVB’s profound impact on the startup ecosystem.

SVB was a bank that specialised in meeting these enterprises’ banking and financial needs. SVB services ranged from creating bank accounts to offering overdraft facilities, letters of credit, cash management, and other services, to more sophisticated products such as term loans, bridging loans, structuring equity solutions, and advising. This gave strategic support as they embarked on their quest to become successful organisations while leaving their imprint on the sands of time, Shyam Maheshwari stated.