before it crashed, Silicon Valley Bank was known by many startups and venture firms as the place to park their money or take out a line of capital. But for the emerging managers, it was much more than just a financial institution.
Multiple emerging managers told TechCrunch+ that SVB was instrumental in helping them build their companies from the ground up. He also provided support to help them build networks and feel included in the ecosystem of companies despite their size. After the bank’s collapse and the chaos that followed, many wondered if the things they loved about SVB would continue.
Unlike many of its banking competitors, apart from the equally business-friendly First Republic Bank, SVB was designed to work with people in the business community; it had options for smaller funds that other banks did not.
Nisha Desai, chief executive and managing general partner at Andav Capital, said SVB was a natural choice for up-and-coming managers like her because it didn’t have the account minimums, or net worth requirements, that many other banks did. Those kinds of limits often restrict initial funds. In addition, SVB offered capital lines to these small funds, allowing them to start building their track record while still raising funds.
“They gave him some capital to go ahead and invest in companies with his new funds,” Desai said. “That was helpful. Obviously, it didn’t spread to everyone, but that allowed the new managers to take off.”
But emerging managers said that while internal banking got them involved with SVB in the first place, their commitment to emerging managers is what made them want to continue the relationship.