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

The collapse of Silicon Valley Bank (SVB) triggered widespread uncertainty across the global startup ecosystem. As regulators, analysts, and media outlets dissected the causes behind the crisis, Shyam Maheshwari SSG chose to focus on a more fundamental question: Why was SVB so important to startups in the first place?

Insights on Startup Banking

With over 22 years of experience in private credit, restructuring, and alternative investments, Maheshwari brings the perspective of someone who has witnessed major financial disruptions firsthand, including the fall of Lehman Brothers in 2008. That experience shapes his balanced and forward-looking view of institutional failures.

A Career Built on Global Investment Leadership

Before founding Nextinfinity Management in Singapore, Maheshwari served as CEO, Founder, and Partner at SSG Capital Management (Singapore) Pte. Ltd., overseeing the firm’s investment operations in India. His association with private credit and special situations investing has positioned him as a respected voice in global finance.

Today, through his family office, he continues to support long-term strategic investments that empower entrepreneurs making his reflections on SVB especially relevant.

The Human Side of the SVB Collapse

Beyond balance sheets and liquidity metrics, the SVB crisis had a deep human impact. Founders, venture capitalists, CFOs, employees, and vendors faced immediate uncertainty. According to Maheshwari, the flood of real-time communication within venture networks revealed how deeply embedded SVB was in the startup world.

For many early-stage companies, SVB was not just a bank. It was an operational lifeline.

Why Startups Relied on SVB

Startups operate under unique pressures. Founders must build products, hire talent, secure funding, and manage risk often without stable revenue streams or traditional collateral. Conventional banks frequently struggle to assess such businesses within standard risk frameworks.

SVB built its model around understanding this reality.

Its services extended well beyond basic banking. The institution offered working capital facilities, overdrafts, venture debt, bridge financing, letters of credit, equity-linked structures, and advisory support. More importantly, it understood the lifecycle of innovation.

Maheshwari notes that many entrepreneurs face skepticism when approaching traditional financial institutions. Risk assessments often prioritize immediate profitability over long-term potential. SVB distinguished itself by aligning its approach with growth-stage companies and emerging business models.

A Legacy That Will Be Felt

While acknowledging that certain strategic missteps may have contributed to SVB’s downfall, Maheshwari emphasizes that its broader contribution to innovation should not be overlooked. The bank created an ecosystem that connected venture capital, founders, and structured financial solutions under one roof.

Its absence leaves a noticeable gap in founder-focused banking.

The Road Ahead for Startup Finance

Despite the disruption, the future of startup banking remains open. Innovation ecosystems are resilient, and financial markets evolve in response to change. Maheshwari remains optimistic that new institutions will emerge ones that combine disciplined risk management with a deep understanding of entrepreneurial needs.

The lesson from SVB’s story is clear: startups require financial partners who recognize both the volatility and the promise of innovation. As Shyam Maheshwari SSG suggests, the next generation of banking institutions must be built not only on capital strength, but also on empathy for the entrepreneurial journey.