Shyam Maheshwari SSG Shares Insights on SVB Collapse and the Future of Startup Banking

Introduction: A Veteran Investor Reflects on a Global Shock

The sudden collapse of Silicon Valley Bank (SVB) sent shockwaves across the global financial and startup ecosystem. While many focused on the failures behind the crisis, seasoned investor Shyam Maheshwari SSG, Founder of Nextinfinity Management Pte Ltd, offered a fresh perspective. He highlighted SVB’s irreplaceable role, particularly for early-stage startups.

 Veteran investor Shyam Maheshwari SSG reflects on SVB’s role in supporting startups.

With over 22 years of experience in credit, restructuring, and investment strategy, Maheshwari draws insights from navigating past crises, including the 2008 Lehman Brothers collapse.

A Strong Foundation in Global Investment Leadership

Before founding Nextinfinity Management, Shyam Maheshwari SSG served as CEO, Founder, and Partner at SSG Capital Management (Singapore) Pte. Ltd., leading the firm’s Indian investment activities. His expertise in private credit and alternative asset management has earned him recognition in global investment circles.

Today, his Singapore-based family office focuses on long-term strategic investments that empower entrepreneurs a mission closely tied to the lessons learned from SVB’s fall.

Understanding the Human Impact of SVB’s Failure

Maheshwari emphasized the human and operational impact of SVB’s collapse, affecting founders, depositors, employees, and vendors. Having experienced the Lehman Brothers bankruptcy firsthand, he understands the anxiety and uncertainty triggered by institutional failures.

“Within hours of the collapse, venture capital networks were flooded with messages,” he noted. Investors, founders, and CFOs shared updates in real-time to assess liquidity and exposure. This response reflected just how deeply SVB was embedded in the startup ecosystem.

Why Startups Needed an Institution Like SVB

Early-stage companies face unique challenges. Innovative ideas are not enough they must also secure capital, recruit talent, develop products, and manage risk with limited resources. Traditional banks often struggle to grasp these dynamics.

This is where SVB excelled.

A Banking Institution Built for Innovation

SVB offered services far beyond standard banking:

• Opening accounts and managing cash flow

• Providing overdraft support and working capital

• Issuing letters of credit

• Offering term loans and bridge financing

• Structuring equity-linked solutions

• Acting as a strategic advisor

Unlike conventional banks, SVB understood that startups might not have immediate profitability or collateral. Its familiarity with innovation allowed founders to access financial tools usually reserved for mature companies.

A Legacy That Will Be Difficult to Replace

While acknowledging SVB’s mistakes, Maheshwari stressed its lasting importance. SVB’s integrated role from financing to advisory made it a pillar of the startup world.

“SVB’s absence will be felt for a long time,” he said. “It wasn’t just a bank; it was a catalyst for innovation.”

Looking Ahead: Who Will Build the Next SVB?

Despite the upheaval, Maheshwari remains optimistic. He believes that the collapse of SVB will inspire new financial institutions that truly understand modern founders’ needs and can support long-term innovation.

He concluded: “The startup ecosystem needs partners who appreciate the entrepreneurial journey. Hopefully, someone is already building the next institution to empower entrepreneurs just as SVB once did.”