Why Silicon Valley Bank ?
Why do startups choose SVB instead of the big four banks like BofA, Chase etc ? Do they offer something different ? #startup #siliconvalleybank
SVB gives free candy when you open an account 🍭
You got screwed, they gave me a toaster.
Low rate, less conditions, VC preference, and also reputation. Many founders and ceos are also incentives to borrow from them since SVB lend them personal mortgage and provide packages discounted rates.
They provide services that cater to start ups and partnered with aws/google/notion and such to provide discounted rates for office software & hosting services.
Easy loans
Risk tolerance plain and simple. You've read about 2008 right? We work with plenty of business entities large and small, but we're more selective now.
SVB offers venture debt, which the top lenders do not. This allows for more generous lending terms in exchange for warrants that BofA and others generally regard as worthless in startups. This opens up a lot of products that the companies otherwise wouldn't qualify for.
Conferences , perks , dinners etc etc .. schmoozing !
You are assuming those banks would even take all of these startups SVB provides them with loans and revolving capital (some not all), is recommended by VCs, and probably has other benefits specific to startups However if you ask bank would take startups you are bringing in a very specific risk profile, big on deposits low on investments and very reliant on the cash they have deposited with you