Silicon Valley Bank

Silicon Valley Bank (SVB) was a specialized financial institution renowned for its deep integration into the U.S. technology and life science startup ecosystem. Unlike traditional venture capital firms that provide equity, SVB primarily operated as a venture debt provider. This meant offering loans and credit facilities to startups, typically those that had already secured equity funding from VCs. Their services allowed companies to extend their cash runway, fund growth initiatives, or bridge between equity rounds without further diluting ownership, making them a crucial partner for high-growth companies.

SVB's client base spanned from nascent startups to established unicorns, reflecting its comprehensive approach to supporting the innovation economy. The bank's unique understanding of the venture capital model and the specific needs of high-growth companies set it apart from conventional banks. Their venture debt facilities were tailored to the stage and needs of the company, often ranging from initial commitments of $2 million for early-stage startups to over $50 million for more mature, high-growth companies, providing flexible capital solutions.

At its peak, Silicon Valley Bank was estimated to serve nearly half of all venture-backed technology and life science companies in the United States, providing critical financial infrastructure beyond just debt. The bank's collapse in March 2023 was a significant event for the tech industry, but its legacy and a substantial portion of its venture banking operations have since been acquired by First Citizens Bank, continuing to serve the startup community under the SVB brand. SVB played an indispensable role in financing innovation, offering a crucial alternative or complement to equity funding for thousands of startups.