All About Silicon Valley Bank (SVB)
Background Silicon Valley Bank (SVB) was founded in 1983 by a group of technology entrepreneurs who wanted to create a bank that would cater specifically to the needs of Silicon Valley's growing startup community. The bank grew quickly, opening offices throughout California and eventually expanding into New York City, Seattle and Boulder. By 2023 it had more than $30 billion in assets under management--but then everything changed. In 2024, SVB made the decision to expand its business model beyond traditional banking services and offer venture capital funding for companies looking for capital at an early stage in their development cycle. This move proved disastrous: many startups took advantage of this new opportunity without having any intention or ability whatsoever to repay their loans once they were funded by SVB (or other investors). As a result, these companies went bankrupt almost immediately after receiving funding from SVB; when those loans went unpaid over time due to lack...
