Shyam Maheshwari on the Role of SVB and the Future of Startup Banking
- Nilo Aslam
- 7 days ago
- 2 min read
Shyam Maheshwari, founder of Nextinfinity Management Pte Ltd, is a seasoned global investor known for his expertise in credit, special situations, and alternative finance. At Nextinfinity a Singapore-based family office he focuses on long-term strategic investments that empower entrepreneurs. Before founding the firm, Shyam Maheshwari served as CEO, Founder, and Partner at SSG Capital Management (Singapore) Pte. Ltd., where he led the firm’s investment activities in India.With more than 22 years of experience evaluating, structuring, and managing complex financial transactions, he remains a respected voice in global credit markets.
Reflecting on the Collapse of Silicon Valley Bank (SVB)
The sudden failure of Silicon Valley Bank (SVB) shaken the global financial and startup ecosystem. Instead of dwelling on the missteps that caused its downfall, Shyam Maheshwari approached the crisis by asking a deeper question: Why did the world need a bank like SVB in the first place?
Having witnessed the collapse of Lehman Brothers early in his career, he expressed empathy for all those affected employees, startup founders, depositors, and business partners.
He noted,
“When you receive messages from venture funds outlining the funding challenges of their portfolio companies, it becomes clear just how deeply SVB was woven into the startup ecosystem.”
For him, the moment was not just about crisis but also a reminder of the scale of SVB’s influence.
Why SVB Was Unique for Founders and Early-Stage Companies
According to Shyam Maheshwari, early-stage entrepreneurs face a complex journey. Beyond building innovative products, they must raise capital, assemble teams, and navigate operational and regulatory challenges. SVB understood these realities better than traditional banks.
What SVB Offered to Startups
Basic banking and account setup
Overdraft and working capital lines
Letters of credit and cash management
Term loans and bridge financing
Structured equity-linked solutions
Strategic advisory support
This combination of institutional-grade service and founder-focused flexibility helped startups scale during their most vulnerable years.
He explained:
“Imagine being the founder of a new venture and walking into a large, traditional bank. The skepticism you encounter can be discouraging. Many institutions are unfamiliar with the startup mindset and dismiss ideas that seem unproven.”
SVB filled this gap with respect, understanding, and tailored products built specifically for founders.
Lessons, Legacy, and What Comes Next
While acknowledging that SVB may have made decisions that contributed to its collapse, Shyam Maheshwari emphasized that its contributions should not be overshadowed. From venture loans to advisory support, SVB offered an ecosystem, not just a banking service making its absence deeply felt across the startup world.
He remarked:
“From credit lines to advisory support, SVB provided an ecosystem—not just a bank. Its absence will be felt deeply.”
Despite the setback, he remains hopeful.
Shyam Maheshwari concluded with an optimistic message:
“I hope someone takes inspiration from SVB and builds the next institution that can support startups in realising their ambitions.”
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