Blume Ventures: Implementing Indian Bank Accounts for Portfolio Companies
Post-Silicon Valley Bank’s demise, Blume Ventures—an Indian early-stage startup financier—mandates that its internationally based portfolio firms establish robust Indian bank accounts. The ill-fated US bank’s collapse made capital access challenging for some Blume-affiliated companies, as their assets lay trapped.
Banking Risk Alleviation
Blume Ventures, stewarding approximately $600 million, will now call upon its portfolio organizations to scatter their banking hazard via numerous accounts and insured term deposits. Ashish Fafadia, a partner at Blume, seeks to enforce these prudential measures, once regarded as mere advice or counsel.
Examining Cash Flow and Financing Tactics
A gamut of executives, from startups to public corporations, are re-evaluating their cash flow and financing methodologies to minimize lurking risks. India’s flourishing startup ecosystem witnesses a multitude of companies setting up stateside outposts to remain proximal to investors, yet still leveraging India for operational, research, and data analysis purposes.
Curtailing Investment in Lengthy Money Market Instruments
Blume’s Ashish Fafadia, who labored incessantly in aiding portfolio companies affected by Silicon Valley Bank’s downfall, asserts that Blume Ventures will dissuade startups from pouring funds into money market instruments exceeding three to six months in duration. Although Fafadia opposes long-term bonds, numerous startup CFOs and founders perceive these investments as supplementary income avenues.
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