Silicon Valley Bank

SVB Financial Group
NASDAQ: SIVB
S&P 400 Component
Public company
Industry Financial Services
Founded 1983[1]
Headquarters Santa Clara, California
Area served
 Silicon Valley
Key people
 Greg Becker, CEO
Roger F. Dunbar, Chairman
Michael R. Descheneaux, President[1]
Revenue Increase US$1.607 billion (2016)[1]
Increase US$0.382 billion (2016)[1]
Total assets Decrease US$44.683 billion (2016)[1]
Total equity Increase US$3.642 billion (2016)[1]
Number of employees
 2,311 (2016)[1]
Capital ratio 12.80% (2016)[1]
Website svb.com

Silicon Valley Bank, a subsidiary of SVB Financial Group, is a U.S.-based high-tech commercial bank. The bank has helped fund more than 30,000 start-ups.[2] SVB is on the list of largest banks in the United States.

Current operations

The company focuses on lending to technology companies, providing multiple services to venture capital and private equity firms that invest in technology and biotechnology, and also on private banking services for high-net-worth individuals, in its home market in Silicon Valley.[3][4] In addition to taking deposits and making loans, the bank operates venture capital and private equity divisions that sometimes invest in the firm's commercial banking clients.[5]

The bank is the largest bank in Silicon Valley in terms of deposits, with a 25.9% market share as of June 30, 2016.[6]

The bank operates from 29 offices in the United States and has operations in Hong Kong; Beijing and Shanghai, China; Bangalore, India; Herzliya Pituach, Israel (a wealthy waterfront suburb of Tel Aviv); and London, England.[1]

History

Silicon Valley Bank (SVB) was founded in 1982; its first office opened in 1983.[7] The bank’s main strategy was collecting deposits from businesses financed through venture capital. It then expanded into banking and financing venture capitalists themselves, and added services aimed at allowing the bank to keep clients as they matured from their startup phase.[8]

In 1988, the bank opened an office in downtown San Jose.

In 1993, the bank's founding CEO, Roger V. Smith, was replaced by John C. Dean; Smith became Vice Chairman of the bank.[9] Smith left in 1994 to launch the Smith Venture Group.[10]

In 2001, the bank acquired merger & acquisition advisor Alliant Partners for $100 million.[11]

In 2002, the bank began expanding its private banking business, which up to that point had been done primarily as a favor to wealthy venture capitalists and entrepreneurs,[12]

In 2004, the bank opened international subsidiaries in Bangalore, India, and London; in 2005 it opened offices in Beijing and Israel.[13] In 2006, the bank began operations in the UK and opened its first branch there in 2012.[5]

In December 2008, SVB Financial received a $235 million investment from the U.S. Treasury through the Troubled Asset Relief Program.[14] The U.S. Treasury received $10 million in dividends from Silicon Valley bank and, in December 2009, the bank repurchased the outstanding stock and warrants held by the government, funding this through a stock sale of $300 million.[15]

In March 2011, the bank was named "Bank Of The Year" by the Export–Import Bank of the United States.[16] In April, Ken Wilcox, who had been CEO since 2000, left the CEO position, while remaining Chairman of the Board; he was replaced by Greg Becker.[17]

In November 2012, the bank announced a 50-50 joint venture with Shanghai Pudong Development Bank (SPDB) to provide capital to start-up technology entrepreneurs. [18] In July 2015, the joint venture was granted approval by the China Bank Regulatory Commission (CBRC) to operate in renminbi (RMB), the official currency of the People’s Republic of China. This license allows the joint venture to provide banking products and services to its clients in local Chinese currency.[19]

In March 2017, Michael R. Descheneaux was named President.[20][21]

References

  1. 1 2 3 4 5 6 7 8 9 SVB Financial Group 2016 Form 10-K Annual Report
  2. ↑ Boudreau, John (October 16, 2011). "Silicon Valley Bank works to import startup culture to China". San Jose Mercury News.
  3. ↑ Reckard, E. Scott (August 8, 2015). "At Silicon Valley Bank, risky tech start-ups are lucrative business". Los Angeles Times.
  4. ↑ van Doorn, Philip (November 13, 2012). "Bank of the Tech Stars: a Great Stock to Own". TheStreet.com.
  5. 1 2 Murphy, Richard McGill (October 22, 2012). "Silicon Valley Bank: The bank for startups". Fortune Magazine.
  6. ↑ Druzin, Bryce (October 3, 2016). "Big growth in Silicon Valley deposits for J.P. Morgan but Comerica takes a hit". American City Business Journals.
  7. ↑ Ryan, Peter (February 2, 2016). "The Story of Silicon Valley Bank: The Risk Less Taken, And That Has Made All The Difference". Medium.
  8. ↑ Rooney, Ben (November 14, 2012). "Microsoft’s Karia Jumps Ship to Silicon Valley Bank". The Wall Street Journal.(subscription required)
  9. ↑ Schubarth, Cromwell (June 1, 2015). "CEO Greg Becker on Silicon Valley Bank's bubble-proof growth". American City Business Journals.
  10. ↑ "Roger V. Smith". Bloomberg L.P.
  11. ↑ "Silicon Valley Bank to Acquire Merger & Acquisition Advisor Alliant Partners" (Press release). PRNewswire. August 16, 2001.
  12. ↑ Lacy, Sarah (August 17, 2003). "Silicon Valley Bank targeting San Jose for private banking". American City Business Journals.
  13. ↑ Lacy, Sarah (September 12, 2004). "Silicon Valley Bank extends reach to Bangalore, London". American City Business Journals.
  14. ↑ "SVB Financial Becomes Second Local Bank To Partake In TARP Program". siliconbeat.com. The Mercury News. December 3, 2008.
  15. ↑ Calvey, Mark (December 18, 2009). "Silicon Valley Bank’s parent to repay all its $235M in TARP money". American City Business Journals.
  16. ↑ "Silicon Valley Bank Wins "Bank Of The Year" Award From Ex-Im Bank" (Press release). PRNewswire. March 29, 2011.
  17. ↑ Calvey, Mark (January 20, 2011). "CEO of Silicon Valley Bank’s parent stepping down". American City Business Journals.
  18. ↑ Muncaster, Phil (August 20, 2012). "Silicon Valley comes to China to spur tech innovation". The Register.
  19. ↑ "Silicon Valley Bank's Joint Venture in China Receives License to Transact in Local Currency" (Press release). PRNewswire. August 6, 2015.
  20. ↑ "Silicon Valley Bank Names Michael Descheneaux President and Daniel Beck CFO" (Press release). PRNewswire. May 12, 2017.
  21. ↑ "Silicon Valley Bank and SVB Financial Group name new president, CFO". American City Business Journals. May 12, 2017.
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