Shyam Maheshwari on the Role of SVB and the Future of Startup Banking

 

Introduction

Shyam Maheshwari, founder of Nextinfinity Management, leads a Singapore-based family office focused on long-term strategic investments that support entrepreneurs. Before launching Nextinfinity, he served as CEO, Founder, and Partner at SSG Capital Management, where he supervised investment activities connected to India.

Investor Shyam Maheshwari explains the impact of Silicon Valley Bank’s collapse on startups and the future of founder-focused banking.

With more than two decades of experience in evaluating complex deals and structuring investment opportunities, he has developed a strong reputation in global credit markets and alternative finance.

Reflecting on the Collapse of Silicon Valley Bank

The sudden collapse of Silicon Valley Bank quickly became one of the most discussed events in global finance. Instead of focusing only on the mistakes that led to the crisis, Maheshwari raised a broader question: why did the world need a bank like SVB in the first place?

Earlier in his career, he witnessed the collapse of Lehman Brothers, an experience that shaped his understanding of financial crises and their impact on businesses and employees.

He expressed sympathy for the people affected by the SVB situation, including founders, employees, depositors, and investors who relied on the institution.

Why SVB Was Important for Startups

Early-stage entrepreneurs often face significant challenges when launching and scaling new businesses. Along with building innovative products, founders must raise capital, hire teams, and manage operational risks.

SVB played a unique role by offering banking services designed specifically for startups. Its support included:

• Business banking and account setup

• Overdraft and working capital facilities

• Letters of credit and cash management solutions

• Term loans and bridge financing

• Structured equity products

• Advisory support for growing companies

These services helped startups access financial tools that are often difficult to obtain from traditional banks.

The Gap in Traditional Banking

Many conventional financial institutions rely on strict risk frameworks and often require stable revenue, long operating histories, or collateral. These requirements can make it difficult for early-stage companies to obtain funding.

SVB stood out because it understood the realities of innovation and entrepreneurship. Instead of focusing solely on immediate financial metrics, the bank often evaluated the long-term potential of startups.

This approach allowed founders to receive support during the most uncertain stages of their business journeys.

Lessons and the Future of Startup Banking

While acknowledging that some decisions may have contributed to the bank’s failure, Maheshwari believes that SVB’s contribution to the startup ecosystem should not be overlooked.

The institution functioned as more than a traditional bank. It provided an ecosystem that connected venture capital firms, founders, and growing companies through financial services and advisory support.

According to Shyam Maheshwari, the future of startup banking will depend on institutions that understand the needs of entrepreneurs and are willing to support innovation through flexible financial solutions.

Conclusion

The collapse of Silicon Valley Bank has sparked important discussions about how financial institutions can better support emerging businesses.

Despite the disruption, Maheshwari remains optimistic that new organizations will emerge to fill the gap left by SVB. By learning from its successes and challenges, the next generation of startup-focused banks may continue to empower entrepreneurs and drive innovation in the global economy.