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Singapore — Compared to start-ups, venture capital firms in Southeast Asia may be more affected by the failure of Silicon Valley Bank.
Jungle Ventures Managing Partner David Gowdey said on CNBC’s “Squawk Box Asia”:
Gowdey added on Tuesday that SVB is Jungle Ventures’ lead bank.
While SVB was primarily located in the United States or served tech startups and venture capital firms located in the United States, some Southeast Asian-based VCs, such as Jungle Ventures and Golden Gate Ventures, have also joined SVB. was a client.
The bank provided VC firms and start-ups with access to the US capital market and networking opportunities in the US.
SVB has delivered and built a very strong product for VC firms, Gowdey said, adding that Jungle Ventures will probably “need to look for the big four players in the US as partners.”
“It’s going to be a big deal,” in terms of replacing some of the functionality SVB offers in the U.S., Golden Gate Ventures managing partner Vinnie Lauria told CNBC.road sign asia” on tuesday.
“We were SVB clients, so we understand the added value,” says Lauria.
Lauria confirms that less than 1% of Golden Gate Ventures’ overall portfolio uses SVB. Golden didn’t have full banking with US banks about the companies he does business with SVB with Gate’s assistance, he said.
Of Jungle Ventures’ portfolio of more than 70 startups, only two have touched SVB, Gowdey said.
“Because it really was [these two companies] We were doing business in the United States,” he added.
Two companies were exposed to SVB, but only one had significant exposure.
As for Southeast Asian startups, they are unlikely to be affected by the contagion of the Silicon Valley bank failure, venture capital firms say.
Lauria of Golden Gate Ventures said:
“The reality is Southeast Asia is already very isolated from what was happening in Silicon Valley,” he said.