Before it crashed, Silicon Valley Bank is known by many startups and venture firms as a place to deposit or withdraw capital. But for emerging regulators, it’s more than just a financial institution.
Many emerging managers told TechCrunch+ that SVB was instrumental in helping them build their companies from the ground up. It also provides support to help them build networks and feel included in the venture ecosystem regardless of their size. After the bank fall and the chaos that followed, many wondered if the things they loved most about SVB would continue.
Unlike many of their banking rivals — aside from the equally venture-friendly First Republic Bank — SVB is designed to work with those in the venture community; it has options for smaller amounts that other banks don’t have.
Nisha Desai, CEO and general managing partner of Andav Capital, says that SVB is a natural choice for emerging managers like her because it has no minimum account — or net worth requirements. — which many other banks have. Those types of limits are usually first-time money restrictions. In addition, SVB provides a capital cap for these small funds, which allows them to start building their track record while they are still fundraising.
“They gave you some capital to go ahead and invest in companies from your new money,” says Desai. “That is very helpful. Obviously it’s not open to everyone, but it allows newer managers to get started.”
But emerging managers say that while backend banking activities led them to engage with SVB in the first place, SVB’s commitment to emerging regulators is what made them want to continue the relationship. generation.
