## SVB’s Collapse: The End of an Era for Emerging Managers
Silicon Valley Bank (SVB) was once a prime destination for startups and venture firms to park their money or take out a capital line. However, for smaller or emerging managers, SVB was much more than just a financial institution.
Multiple emerging managers who worked with SVB shared that it helped them build their firms from scratch, provided them with support to create networks, and made them feel included in the venture ecosystem – despite their size. However, after SVB’s collapse in 2023, many were left wondering if the things they loved most about SVB would continue.
Despite being designed to work with people in the venture community, SVB’s account minimums or net worth requirements restricted first-time funds from accessing the same benefits as larger funds. But for emerging managers like Nisha Desai, the CEO and managing general partner of Andav Capital, SVB was a natural choice because it didn’t have the same limitations – making it the perfect bank for smaller funds.
Additionally, SVB offered capital lines to these small funds, allowing them to build their track records while still fundraising. This gave newer managers the chance to get off the ground and invest in new companies with the help of SVB.
However, emerging managers discovered that SVB’s commitment to supporting smaller funds was what made them want to continue the relationship. Unlike other banks, SVB always prioritized emerging managers and gave them access to the same benefits as more established ones.
So, what does SVB’s collapse mean for emerging managers? While disappointing, it’s essential to keep in mind that there are still banks and organizations that prioritize emerging managers’ success in the venture ecosystem.
First Republic Bank, for instance, offers the same support and options as SVB but with the added benefit of being able to work alongside more established funds. Similarly, organizations like Founders First Capital Partners prioritize social impact alongside support for diverse founders and emerging managers.
In conclusion, SVB’s collapse marks the end of an era for emerging managers who relied on it for financial support, networks, and inclusion in the venture ecosystem. However, it’s critical to remember that there are still banks and organizations out there that prioritize supporting emerging managers’ success. Now, it’s up to emerging managers to find the right partners who will help them thrive in the ever-evolving world of venture capital.#Emerging #managers #hope #SVB #offers #support #VCs