before it crashesSilicon Valley Bank was known to many startups and venture capital firms as a place to deposit their money or obtain a capital line. But for the budding managers, it was much more than a financial institution.
Several startup managers have told TechCrunch+ that SVB has been instrumental in helping them build their companies from the ground up. It also provided support to help them build networks and feel part of the project ecosystem despite their size. after the bank Collapses And the chaos that followed left many wondering if the things they loved about SVB would last.
Unlike many of their banking competitors – other than the adventure-friendly First Republic Bank – SVB is designed to work with people in the venture community; It had options for smaller funds that were not available at other banks.
Nisha Desai, CEO and Managing General Partner of Andav Capital, said SVB was a natural choice for budding managers like her because it didn’t have account minimums — or net worth requirements — that many other banks had. These types of restrictions often net first time money. In addition, SVB offered capital lines to these small funds, allowing them to begin building their own track records while they were still raising funds.
“They gave you some capital to go ahead and invest in companies with your new money,” Desai said. “That was helpful. It obviously didn’t extend to everyone, but it allowed the new directors to get off the ground.”
But the budding directors said that while the banking back-end operations got them involved with SVB in the first place, it was its commitment to the budding directors that made them want to continue the relationship.
