Before it crashed, Silicon Valley Bank was known to many startups and venture companies as the place to park their money or take out a capital cap. But for emerging executives, it was much more than just a financial institution.
Multiple emerging executives told ukbusinessupdates.com+ that SVB helped them build their business from the ground up. It also provided support to help them build networks and feel included in the enterprise ecosystem despite their size. After the bank’s collapse and ensuing chaos, many wondered if the things they loved most about SVB would remain.
Unlike many of their banking competitors – other than the equally entrepreneurial First Republic Bank – SVB is designed to work with people in the entrepreneurial community; it had options for smaller funds that other banks didn’t.
Nisha Desai, Andav Capital’s CEO and managing partner, said SVB was a logical choice for up-and-coming executives like herself because it didn’t have the minimum accounts — or capital requirements — that many other banks had. Those kinds of limits often limit the first money. In addition, SVB provided capital lines to these small funds, enabling them to build their track record while still fundraising.
“They gave you some capital to go ahead and invest in companies from your new funds,” Desai said. “That was helpful. Of course it was not expanded for everyone, but that allowed newer managers to get off the ground.”
But emerging executives said that while the back-end banking business got them involved with SVB in the first place, the commitment to emerging executives made them want to continue the relationship.