Silicon Valley Bank crisis: Revenue-based finance start-up GetVantage offers quick funding
At a time when many Indian start-ups may be reeling under the effects of the collapse of Silicon Valley Bank (SVB), home-grown alternative funding platform GetVantage has been quick in coming to the rescue of affected start-ups.
GetVantage, a revenue-based financing venture, has designed an offering wherein start-ups can get funds up to $250k in just 48 hours so that the working capital requirements are not affected and business goes on as usual.
“We understand many founders are worried about the evolving impact and contagion on their company and colleagues in India,” says Bhavik Vasa, Founder & CEO, GetVantage, which has funded more than 450 ventures to date.
“GetVantage is actively helping many start-ups & SaaS founders whose India operations may be impacted by the ongoing fallout of the unfortunate SVB situation – to quickly get access to the working capital ($200k+) they need to minimise any disruption to operations and get through this period,” he added.
Revenue-based finance or RBF is fast gaining popularity and refers to a mechanism wherein a start-up can avail growth funding without the founders having to dilute any stake or offer any collateral.
The funding is done based on the revenues of the venture and the repayment is also structured as a portion of the future monthly revenue of the start-up.
Incidentally, GetVantage will also be helping start-ups get new banking partners in GIFT City for a US dollar account.
“We are excited to work with our valued banking partners to help impacted founders open US dollar accounts via GIFT City in India to manage their future revenues and access the working capital they need to get through this uncertain period,” said Vasa.
This assumes significance as reports suggest that many of the start-ups affected by the ongoing crisis had just one banking partner – Silicon Valley Bank.
“There seems to be a common theme amongst affected start-ups. A large majority had just one banking partner and even if there was a second bank, SVB accounted for 80-90 per cent of the banking operations,” says Vasa.
The potential impact of the crisis can be gauged from the fact that GetVantage has received around 100-150 enquiries for funding ever since the SVB issue came out to the public.
“It’s a fluid situation but there is fast-growing interest from start-up founders who are looking to alternative financing platforms like GetVantage to get through this uncertainty. Our team is actively engaged in discussions with many, many founders that have reached out to us,” said Vasa.
Interestingly, the industry is already buzzing with talks that many founders are frantically booking tickets to the US, trying to find an alternative at a time when their funds are blocked in the crisis-hit bank.
Also read: FDIC takes control of collapsed Silicon Valley Bank, retains employees for 45 days at 1.5x salary
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