1 lakh jobs at risk, 10k startups in crisis
American technology startup accelerator Y Combinator urges US Treasury Secretary Janet Yellen and others, to prevent further shockwaves
New Delhi: US-based technology startup accelerator Y Combinator, which has invested in thousands of startups, including at least 200 from India, has written a petition to US Treasury Secretary Janet Yellen and others, asking them to prevent further shockwaves that could lead to financial crisis and layoffs of more than 100,000 workers. Over 1,200 CEOs and founders representing over 56,000 employees have already signed the petition, written by Garry Tan, CEO and President of Y Combinator, to save startups and hundreds of thousands of jobs.
“We ask for relief and attention to an immediate critical impact on small businesses, startups, and their employees who are depositors at the bank,” read the petition.
According to the National Venture Capital Association (NVCA), Silicon Valley Bank has over 37,000 small businesses with more than $250,000 in deposits. "These balances are now unavailable to them, and without further intervention, according to the FDIC website, may be inaccessible for months to years," the petition further said.
In the Y Combinator community, one-third of startups with exposure to SVB used SVB as their sole bank account.