Startups impacted by the collapse of Silicon Valley Bank (SVB) are being offered interim financing from funding platforms such as Klub Works, Recur Club, and GetVantage.
The firms are extending credit against frozen SVB deposits as well as against future working capital receivables, they said.
Recur Club, a fintech intermediary that connects startups to institutional investors, said it created a $15 million capital pool to offer interim financing to startups against future receivables. Recur said it had also waived its fee. However, typically institutional investors on its platform buy startup receivables for a discount of 8-10%, Eklavya Gupta, co-founder of Recur Club said.
Recur has already received enquiries from over 100 startups.
“We are working to provide instant non-dilutive financing solutions for startups to fund their payroll and short-term working capital requirements within 48 hours of receiving the companies’ data and without diluting equity," Gupta said.
GetVantage, another recurring revenue financing firm, is offering a loan of $250,000 to startups impacted by the collapse of SVB, Bhavik Vasa, founder and chief executive of GetVantage said.
“Many of the startups affected are fundamentally good businesses, generating revenues that are caught in an unfortunate situation," Vasa said. “We maintain our strict data-driven underwriting process at GetVantage that requires deep analysis of financials, bank statements (Indian and SVB), and other data sets," he added, on how it will evaluate deserving startups for loans.
Revenue-based financing firm Klub, which raised a ₹200 crore fund last year, said it is providing “emergency financing up to $400K within 48 hours" to startups impacted by the SVB collapse. “We are offering capital solutions for all use cases, including working capital, inventory financing, and payroll—whether startups require short-term working capital loans or credit lines," the firm said.
