Venture capital firms in Southeast Asia have been affected more by the fallout from SVB than startups

  • While SVB served technology startups and venture capital firms predominantly located in the United States or with a presence in the United States, some venture capitalists located in Southeast Asia—such as Jungle Ventures and Golden Gate Ventures—were also clients of SVB.
  • Venture capital firms in the region say many venture capital firms in Southeast Asia may face challenges finding another bank with the same product offering as the collapsed SVB.
  • “It’s really because local banks here don’t offer the same product and services as SVB,” David Judy, managing partner at Jungle Ventures, said on CNBC’s Squawk Box Asia.

SINGAPORE – Compared to start-ups, venture capital firms in Southeast Asia could see a bigger impact from the collapse of the Silicon Valley bank because finding an alternative to the US-based bank in the region would be difficult.

“I think from a venture capital firm perspective, you’re going to see more impact here,” David Goody, managing partner at Jungle Ventures, told CNBC’s “Squawk Box Asia.”

“It’s really because local banks here don’t offer the same products and services that SVB does,” Judy said Tuesday, adding that SVB was Jungle Ventures’ primary bank.

While SVB served technology startups and venture capital firms predominantly located in the United States or with a presence in the United States, some venture capitalists located in Southeast Asia—such as Jungle Ventures and Golden Gate Ventures—were also clients of SVB.

The bank provided venture capital firms and startups with access to the US capital market as well as networking opportunities in the US

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SVB has delivered and built a very strong product proposition for VC firms, Judy said, adding that Jungle Ventures may now have to “seek a player from the Big Four in the US to partner with us.”

In terms of replacing some of the features that SVB provides in the US, “It’s going to be tough,” Vinnie Lauria, managing partner at Golden Gate Ventures, told CNBC.street signs asia” Tuesday.

“We were an SVB client, so we understand value-add very well,” said Lauria.

Lauria qualifies that less than 1% of Golden Gate Ventures’ entire portfolio has been handled through SVB. For those Golden Gate-backed companies that did business with SVB, they did not share full banking services with the US bank, he said.

Gowdey said that only two companies in Jungle Ventures’ portfolio of more than 70 startups have had exposure to SVB.

“It was really because [these two companies] He had operations in the United States.”

While both companies had exposure to SVB, only one company had physical exposure, Judy said, adding that the company that experienced physical exposure had engaged SVB for payroll services.

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