Emerging managers want new SVB to provide same support for new VCs

before it crashes, Silicon Valley Bank was known to many start-ups and ventures as a place to deposit funds or withdraw capital lines. But for the upstart operator, it was more than just a financial institution.

Several startups told TechCrunch+ that SVB helped them build their companies from the ground up. We also provided support to help them build their networks and feel included in the venture ecosystem, regardless of size.after the bank collapse And the confusion that followed left many wondering if what they loved most about SVB would continue.

Unlike many competing banks (with the exception of the equally venture-friendly First Republic Bank), SVB was designed to work with people in the venture community. I had options for smaller funds that other banks didn’t have.

Nisha Desai, CEO and managing general partner of Andav Capital, said SVB is a natural fit for emerging managers like her because it doesn’t have the minimum account size (or net worth requirement) that many other banks had. said it was a good choice. This type of restriction often limits initial funding. In addition, SVB provided a capital line to these smaller funds so they could start building their track record during their fundraising.

“They gave you capital from the new money to invest in companies,” said Desai. “It helped. Obviously it didn’t apply to everyone, but it got the new manager on track.”

However, although the back-end banking business initially got SVB involved, the upstart manager said his commitment to the upstart manager was the reason he wanted to continue the relationship.