Bisnis.com, JAKARTA – The collapse of Silicon Valley Bank (SVB) last week is expected to hamper funding and hurt start-ups. However, not in Indonesia, but in Canada.
Reported from ReutersOn Tuesday (3/14/2023), SVB’s bankruptcy also puts Canadian startups in the hands of domestic lenders who may be more selective in funding new ventures, financiers told Reuters.
This is bad news for the tech sector, which has been in a terrible state since 2022. Additionally, investors are expected to be more risk averse in their startup investments.
“I think this may be the worst possible time in the last decade due to the technological decline that we are experiencing,” said INFO Financial CEO Neil Selfe.
The Canadian division of SVB, which received an operating license in 2019, competed with other banks and private lenders to help fund the growth of Canada’s tech sector, before filing for bankruptcy on Friday.
The company doubled its secured lending to C$435m/US$314m in 2022 from a year earlier.
As you know, Canada itself is the world’s second largest technology center after Silicon Valley. Unlike Canada, Indonesia should not be affected by the collapse of the SVB.
The Indonesian Venture Capital Association for Startups (Amvesindo) said Indonesia-based venture capital (VC) rarely does business with Silicon Valley Bank (SVB).
Amvesindo chairman Eddi Danusaputro is still compiling data on SVB-affiliated VCs, but early indications show that relatively few VCs in Indonesia do business with SVB.
Other than that, few Indonesian VCs have invested in startups in the United States (US).
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