Until it crashedSilicon Valley Bank was popular for many startups and venture firms as a place to park their money or take a line of capital. But to 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. It also provided support to help them build networks and feel included in the venture ecosystem despite their size. After the collapse of the bank and the chaos that followed, many were left wondering if the things they loved most about SVB would continue.
Unlike most of their banking competitors, with the exception of venture capital First Republic Bank, SVB was designed to work with people in the venture community; it had smaller funds options that other banks didn’t have.
Nisha Desai, managing director and managing general partner at Andav Capital, said SVB was a natural choice for emerging managers like her because it didn’t have the minimum account sizes or net worth requirements that many other banks had. Those types of restrictions often limit the amount of funds available for the first time. Plus, SVB offered capital lines to these smaller funds, allowing them to start building their story while they were still fundraising.
“They gave you some capital to go ahead with your new funds and invest in companies,” Desai said. “It was helpful. Obviously, it wasn’t popular with everyone, but it allowed the new leaders to get off the ground.”
But the emerging managers said that while the back-end banking was what drew them to SVB in the first place, its commitment to emerging managers is what made them pursue the relationship.