The rise and fall of silicon valley bank, part l: the success story

Abstract

SVB Financial Group was a diversified financial institution specialized in the technology and life sciences industries. Founded 1983 in Silicon Valley, SVB significantly influenced the startup landscape for the past four decades by operating in a niche overlooked by traditional banks. In the 1980s, it introduced venture debt for early-stage companies, enabling access to capital while minimizing equity dilution. Over the years, the company created a one-stop-shop comprised of Silicon Valley Bank, SVB Private, SVB Capital, and SVB Securities, serving startups, corporations, VC and PE firms, and private individuals. By 2022, SVB was the 16th largest U.S. financial institution.