Shyam Maheshwari SSG Shares Insights on SVB’s Collapse and the Future of Startup Banking

 Introduction:

 A Veteran Investor Reflects on a Global Shock

The sudden collapse of Silicon Valley Bank (SVB) sent shockwaves across the global financial and startup ecosystem. While the world debated what went wrong, seasoned investor Shyam Maheshwari SSG, Founder of Nextinfinity Management Pte Ltd, offered a unique perspective. Instead of focusing solely on the failure, he highlighted the essential role SVB played in supporting early-stage companies.

With over 22 years of experience in credit, restructuring, investment strategy, and special situations, Maheshwari’s insights are informed by his experience navigating major financial crises, including the collapse of Lehman Brothers in 2008.

Shyam Maheshwari SSG explains SVB’s collapse and the need for founder friendly banking solutions in the startup world.

A Strong Foundation in Global Investment Leadership

Before founding Nextinfinity Management, Shyam Maheshwari SSG served as CEO, Founder, and Partner at SSG Capital Management (Singapore) Pte. Ltd., where he oversaw investment operations in India. His profile is widely recognized for expertise in private credit, alternative finance, and strategic investments.

Today, his Singapore-based family office focuses on long-term investments that empower entrepreneurs a philosophy that mirrors the role SVB played for the startup ecosystem.

Understanding the Human Impact of the SVB Collapse

Maheshwari emphasized the emotional and operational disruption felt by founders, depositors, employees, and partners connected to SVB. Drawing from his experience during the Lehman Brothers bankruptcy, he understands the uncertainty such institutional failures can create.

He noted the surge of messages circulating among venture capital networks after SVB’s collapse, highlighting the bank’s deep integration within the startup world:

“These communications reflect just how deeply SVB was embedded in the global startup ecosystem.”

Why SVB Was Critical for Founders and Early-Stage Companies

Early-stage companies face unique challenges: securing capital, recruiting talent, building products, and managing operational risk with limited resources. Traditional banks often struggle to accommodate these needs.

SVB, Maheshwari explained, filled this gap by providing founder-focused financial services, including:

• Basic banking and account setup

• Overdraft and working capital facilities

• Letters of credit and cash management

• Term loans and bridge financing

• Structured equity solutions

• Advisory support for scaling businesses

This combination of institutional grade support and founder friendly flexibility enabled startups to grow during their most vulnerable stages.

“Imagine being a new founder walking into a large traditional bank. The skepticism can be discouraging. Many conventional institutions are unfamiliar with the startup mindset and often dismiss unproven ideas,” Maheshwari said.

SVB addressed this gap by offering respect, understanding, and tailored solutions for entrepreneurs still shaping their identities.

Lessons, Legacy, and Looking Forward

While some decisions at SVB contributed to its downfall, Maheshwari stressed that its contributions should not be overlooked. From credit lines to advisory support, SVB created an ecosystem that served venture capitalists, founders, and early-stage businesses.

“SVB wasn’t just a bank; it was a catalyst for innovation. Its absence will be deeply felt,” he remarked.

Despite the setback, Shyam Maheshwari SSG remains optimistic about the future. He believes SVB’s story will inspire the creation of new institutions that understand modern founders’ needs:

“The startup ecosystem needs financial partners who appreciate their journey. I hope someone is already building the next institution that empowers entrepreneurs just as SVB once did.”