SVB collapse serves up a lesson for UAE startups: Diversify funds

SVB collapse serves up a lesson for UAE startups: Diversify funds

Experts turned the spotlight on the rapidly changing business landscape at the the fourth Nafa summit organised by Khaleej Times

Published: Tue 14 Mar 2023, 8:24 PM

The unexpected collapse of Silicon Valley Bank (SVB) is a learning moment for startups, according to panellists at the New-Age Finance and Accounting (Nafa) summit organised by Khaleej Times.

“It is something no one ever expected. So, it serves as a reminder for startups to not depend on only one bank, and diversify their funds," said Amit Agarwal, CFO of Trukker, a logistics and transportation company.

Experts in the country had stressed that although the swift closure of SVB and Signature Bank sent shockwaves through global markets, its impact on the country was expected to be minimal, thanks to accessible financial support for startups here.

Besides the SVB issue, entrepreneurs and thought leaders also discussed the changing business landscape and how firms should adapt. Today, it has become more expensive to make mistakes, a CEO told the Nafa summit held in Dubai on Tuesday.

“Since the interest rate has gone up, losing money cost more today than it did since the previous financial crisis,” said Armin Moradi, CEO and co-founder of fintech company Qashio.

“It's expensive to make mistakes and