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    Vikshita Vitthal Gujaran in News

    15-Mar-2023 05:37 AM


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    Ordeal Of A Startup Founder With Funds Stuck At The Collapsed Silicon Valley Bank

    The unprecedented crisis has left founders scrambling to meet payroll requirements and other working capital needs as entire deposits appear to be locked up for now.
    As a result, he is seeing a working capital crunch at his startup.
    For context, Terra.do has raised about $6.5 million till date (Rs 53 crore) from venture capitalists such as Avaana Capital and BEENEXT and angel investors such as Zomato's Deepinder Goyal and MakeMyTrip Founder Deep Kalra.
    My suspicion is that a lot of funds that were thinking about deploying funds are going to have a cool-off period because the markets are so volatile right now that they'll probably wait until things become stable.
    The obvious lesson from the crisis, Bapna said, is cash management. "
    Secondly, he said, startups must also look at what cash outflows and inflows look like. "

    Source -https://www.bqprime.com/business/ordeal-of-a-startup-founder-with-funds-stuck-at-the-collapsed-silicon-valley-bank