VCs say SVB fallout unlikely to affect SEA startup fundraising.

14 mars 2023

According to VCs and an analyst interviewed by CNBC, the failure of Silicon Valley Bank is not expected to impact the ability of tech startups in Southeast Asia to raise funds. David Gowdey, Managing Partner at Jungle Ventures, stated on "Squawk Box Asia" that while caution is warranted, he does not anticipate the spread of contagion. Similarly, Ray Wang, an analyst at Constellation Research, expressed confidence that VCs will continue to support tech entrepreneurs.

Venture capitalists and an analyst have reassured CNBC that Southeast Asian tech startups are unlikely to suffer from the recent collapse of Silicon Valley Bank (SVB), which had provided services to many VC firms and VC-backed startups.

Despite depositors rushing to withdraw their funds as news of the bank's financial situation spread last week, David Gowdey, Managing Partner at Jungle Ventures, believes that the impact on fundraising is "a watch out, but I don't think that contagion spreads." He also praised the government's intervention, including backing depositors, as providing market stability. While SVB was Jungle Ventures' primary bank, the exposure was limited.

Vinnie Lauria, Managing Partner at Golden Gate Ventures, suggested that the fallout from SVB could be an opportunity for Southeast Asia, which is now attracting more US investors.

Gowdey confirmed that Southeast Asian funds are well-capitalized, and though access to capital may become more challenging, VCs will continue to fund tech entrepreneurs. However, Ray Wang, Founder and Chairman of Silicon Valley-based Constellation Research, emphasized the loss of a bank that understands how tech and biotech companies operate, which may affect access to bank loans and operating capital.