Before it crashed, Silicon Valley Bank was known to many startups and venture firms as the place to park their money or take out a capital line. But for emerging managers, it was a lot more than just a financial institution.
Multiple emerging managers told TechCrunch+ that SVB was instrumental in helping them build their firms 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 bank’s collapse and the ensuing chaos, many were left wondering if the things they loved most about SVB would continue.
Unlike many of their banking competitors — other than equally venture-friendly First Republic Bank — SVB was designed to work with people in the venture community; it had options for smaller funds that other banks did not.
Nisha Desai, the CEO and managing general partner of Andav Capital, said that SVB was a natural choice for emerging managers like herself because it didn’t have the account minimums — or net worth requirements — that many other banks had. Those kinds of limits often restrict first-time funds. Plus, SVB offered capital lines to these small funds, which allowed them to start building their track records while they were still fundraising.
“They gave you some capital to go ahead and invest in companies out of your new funds,” Desai said. “That was helpful. Obviously it wasn’t extended to everybody, but that allowed newer managers to get off of the ground.”
But emerging managers said that while the back-end banking operations got them involved with SVB in the first place, its commitment to emerging managers is what made them want to continue the relationship.
Graham & Walker founder and managing director Leslie Feinzaig said that SVB made the Seattle-based micro fund feel like it was a valuable member of the venture capital community regardless of its size.
“I never felt like I was ‘less than’ because we are a micro fund, but it was also very clear that they were in it to grow with us for the day that we are no longer a micro fund,” Feinzaig said.
But Feinzaig’s relationship with SVB didn’t start here; her previous startup, Venture Kits, worked with SVB, too. She said that going to the bank’s events as a founder was how she made some of her first investor relationships that helped her build her network.
The impact of SVB’s events was something that many emerging managers could speak to. The bank frequently sponsored and hosted events targeted at emerging managers and was also consistently involved with events that supported startups and firms led by underrepresented groups.
The bank would also help funds host events of their own, something that gave young firms more credibility. Shila Nieves Burney, the founder and managing partner at Zane Venture Fund, said SVB was always willing to come in and work with her firm’s nonprofit, Zane Access, which helps underrepresented founders learn the ropes of the industry.
“It was a 360 relationship for Zane; they worked with us on all parts of our business,” Nieves Burney told TechCrunch+.
Nieves Burney said that SVB’s networking events were crucial because they helped her feel like a real part of the broader venture community in a way she didn’t usually as a small fund in Atlanta.
The bank supported emerging funds even for VCs who weren’t SVB’s customers. Paige Finn Doherty, general partner at Behind Genius Ventures, told TechCrunch+ that she never felt that it mattered whether she was a customer; she said it felt like the bank wanted emerging managers to succeed, no matter what.
“I feel like they are really incredible in the way that they go above and beyond to throw community events,” she said. “Sometimes folks can be a little more closed off if you aren’t a client yet, but I felt incredible warmth from the team there.”
Although the bank got its business operations back up and running, it’s not clear yet if this kind of community involvement will return. All of the emerging managers TechCrunch+ spoke to hope it does. At the very least, emerging managers hope those who made these connections feel so strong will find a home to continue the work elsewhere.
“No bank is perfect, don’t get me wrong,” Nieves Burney said. “I had my concerns, but at the end of the day, they did everything they promised they would do in terms of helping us become better managers and helping us with those better services. If we lose that, I can’t see anyone replacing that.”
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