Days after US regulators announced the shutdown of the Silicon Valley Bank (SVB), the former BharatPe co-founder remarked that he is eager to see how many venture capitalists (VCs) lose their jobs in the aftermath. Taking to Twitter on Sunday, Mr Grover stated the VCs are not founders and it's not their own money they deploy. He even claimed that the VC space needed a "clean up" for a long time.
"Eager to see how many VCs lose their jobs (yes they do jobs - are not founders and it's not their own money that they deploy) in the aftermath of SVB. VC space needed a cleanup for long. Ab number aayega inka - too stupid people have made too much easy money in VCs doing nothing," the former Shark Tank India Judge wrote on Twitter.
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Responding to Mr Grover's tweet, Suneel Yadkikar, who shares insights on start-ups, also seemed to concur with the former BharatPe co-founder. He said that while it is important to hold individuals accountable for their actions, let's not forget the bigger picture.
"The SVB bank failure highlights the need for a thorough evaluation of the VC space and the role it plays in the startup ecosystem. The moment has come for industry-wide improvements to the system," Mr Yadkikar added.
Notably, SVB, which was the 16th largest bank in the United States, was shut down a day after its stock price plummeted by 60%. Its collapse was the largest bank failure since Washington Mutual in 2008 and the second-largest in American history.
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It all started after SVB on Thursday announced a stock offering and offloaded securities to raise much-needed cash as it struggled with falling deposits. In reaction, the firm's shares collapsed 60% in New York and trading was suspended before regulators announced they had closed the bank. The bank's assets have since been turned over to the Federal Deposit Insurance Corporation (FDIC), which will begin returning Silicon Valley Bank customers' insured deposits on Monday.
Notably, at the close of business on March 9, the bank had a negative cash balance of $958 million, according to an order taking possession of the bank filed Friday by California's bank regulator, the Department of Financial Protection and Innovation.
