Positives for venture debt providers amid macroeconomic uncertainty, SVB collapse

WHILE the collapse of startup lender Silicon Valley Bank (SVB) may have brought bad press for venture debt, Singapore-based lenders soon found the situation turning to their advantage.

Once the smoke cleared, when it became apparent that SVB’s failure was due to a core banking governance issue with limited impact outside the US, interest in the niche financing market picked up. The impact on South-east Asia was also minimal, with SVB not operating here.

For venture debt in the region, the crisis turned out to be a “net positive”, said Paul Ong, partner at venture debt firm Innoven Capital.