Shyam Maheshwari Shares Deep Insights on SVB’s Collapse and the Future of Startup Banking
- Nilo Aslam
- Jan 30
- 3 min read
Introduction: A Veteran Investor’s Perspective on a Global Shock
The unexpected collapse of Silicon Valley Bank (SVB) sent waves across the global startup and venture capital ecosystem. As founders and investors scrambled to understand the impact, many discussions focused on what went wrong. However, veteran investor Shyam Maheshwari SSG approached the moment differently highlighting the crucial role SVB played in supporting early-stage companies and innovation.
With over two decades of experience in credit, restructuring, investment strategy, and special situations, Maheshwari’s viewpoint reflects the clarity of someone who has witnessed major financial disruptions, including the Lehman Brothers crisis in 2008.
A Strong Foundation in Global Investment Leadership
Before launching Nextinfinity Management Pte Ltd, Maheshwari held leadership roles in alternative investment and private credit. He previously served as CEO, Founder, and Partner at SSG Capital Management (Singapore) Pte. Ltd., where he led the firm’s India-focused investment activities.
Today, his Singapore-based family office, Nextinfinity Management, focuses on long-term strategic investments designed to support entrepreneurs and high-potential businesses an approach that aligns closely with his reflections on SVB’s collapse.
The Human Impact of SVB’s Collapse
Beyond the financial headlines, the SVB crisis created intense emotional pressure for founders, employees, depositors, and vendors. Many startups relied on SVB not only for banking but also for operational continuity such as payroll processing, vendor payments, and cash management.
Maheshwari, who experienced the Lehman Brothers bankruptcy era first-hand, emphasized how institutional failures create uncertainty and anxiety across markets. He also noted how quickly the venture capital community mobilized after SVB’s collapse flooding networks with updates and warnings as founders tried to assess liquidity exposure.
These rapid communications highlighted one major truth: SVB wasn’t just part of the startup ecosystem it was deeply embedded within it.
Why Startups Needed a Bank Like SVB
Early stage startups face challenges that traditional banks often struggle to evaluate. A great idea alone doesn’t build a company. Founders must raise funds, build products, hire talent, manage burn rate, and navigate unpredictable business cycles often without collateral or stable cash flows.
Traditional banks typically rely on rigid risk frameworks that don’t accommodate innovation. This is where SVB stood out. It understood startup dynamics and offered financial tools that many early-stage companies would not have been able to access elsewhere.
A Banking Institution Built for Innovation
SVB provided far more than standard banking services. It supported founders through multiple stages of growth by offering:
Business account setup and cash management
Overdraft facilities and working capital support
Letters of credit for operations and expansion
Term loans and bridge financing
Equity-linked and flexible funding structures
Strategic advisory and ecosystem connections
This ability to combine financial services with startup understanding made SVB uniquely valuable to entrepreneurs.
As Shyam Maheshwari SSG explained, a founder walking into a traditional bank often faces skepticism, especially in the absence of profitability or assets. SVB, on the other hand, recognized that innovation rarely comes with immediate stability and it designed solutions accordingly.
A Legacy That Won’t Be Easy to Replace
While acknowledging that SVB made errors that contributed to its downfall, Maheshwari emphasized that the institution’s impact must not be underestimated.
SVB served as a bridge between startups and capital markets, providing support that went beyond lending. Its advisory mindset, risk appetite, and deep understanding of founder journeys helped accelerate innovation across sectors.
In many ways, SVB acted as a catalyst for growth helping founders move faster, scale sooner, and operate with greater confidence.
Looking Ahead: Who Will Build the Next SVB?
Despite the disruption, Maheshwari remains optimistic about the future. He believes SVB’s collapse will inspire a new generation of financial institutions that truly understand startup needs and are willing to build founder-friendly models.
He concludes with a hopeful message: the startup ecosystem will always require financial partners who understand innovation, uncertainty, and long-term vision. And the world may soon see a new institution rise one designed to empower entrepreneurs in the way SVB once did.
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