After they famously imploded in March 2023, you could be forgiven for thinking that Silicon Valley Bank’s fintech business was done. Not so.
This time last year SVB was still the go-to bank for fintech companies, with the vast majority of venture-backed firms as clients. That changed in March.
In a fascinating update to start the year, our own Katherine Heires spoke to experts both inside and outside the bank to get the pulse of where things stand now.
The SVB venture debt business is still alive and well inside First Citizens Bank with 173 new loans originated in Q3 2023 in the tech and healthcare space. It closed new deals in 2023 with fintechs such as SoFi, Settle, Achieve and Silo.
The big difference is this. Whereas before, SVB enjoyed the lion’s share of the venture debt market for fintech, there are new players in the space and SVB has to work harder to close deals.
Not to mention the fact that fintech companies have moved their primary bank account into one of the major banks. Most startups now have multiple banking relationships.
SVB no longer enjoys the unparalleled position of strength it once had, but it still has a robust fintech business.
Silicon Valley Bank is still open for business for fintech companies. In many ways, even though it is now part of First Citizens Bank, it is very similar to what it was before, at least from a fintech perspective.
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Peter Renton is the chairman and co-founder of Fintech Nexus, the world’s largest digital media company focused on fintech. Peter has been writing about fintech since 2010 and he is the author and creator of the Fintech One-on-One Podcast, the first and longest-running fintech interview series.