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Bob Medearis, Roger Smith, and Bill Biggerstaff founded Silicon Valley Bank in 1983. Smith ran the Bank as a startup business in the first decade. Subsequent CEO John Dean restructured the Bank and Ken Wilcox redirected the Bank with a central focus on exclusively serving the tech community. Greg Becker accelerated the Bank, connecting its past to the future. The bank’s assets grew at a fast pace during the pandemic. Becker tripled the size of the bank between 2019 and 2022.
The Black Lives Matter movement and the pandemic propelled many financial institutions, including banks, to adopt Environment, Social, and Governance (ESG) principles. Banks disclosed their metrics in various reports showing that they were somewhat implementing efforts to address ESG in their business, operations, and management.
Apple Computer, Inc. released its “Think Different” campaign in 1997 to mark the return of Steve Jobs and to resurrect the struggling computer company. The Think Different campaign “got an audience that once thought of Apple as semi-cool, but semi-stupid to suddenly think about the brand in a whole new way.”1 Interestingly, be different is what Silicon Valley Bank (SVB) embraced and practiced from its beginning in 1983. The Bank distinguished itself from the crowded banking sector by serving entrepreneurs in the region since the early 1980s. At the time SVB was formed and officially named, “Silicon Valley” was considered unattractive for banking to capture the public attention and adopted the available moniker.
This book provides a first-hand account of the founding, ascent, and dissolution of Silicon Valley Bank (SVB), a tech community bank founded in 1982 with US$5 million that became the nation's 13th largest bank and tech industry's lender and bank. In this pathbreaking work, which challenges conventional understanding of risky tech lending by showing how an independent community bank became the go-to bank for the tech industry in the United States, Xuan-Thao Nguyen includes interviews with key players, ranging from the original founders and early employees to the current CEO of SVB. Chapters explore how the relationship between the venture capital (VC) industry and SVB transformed the way commercial banks comply with banking regulators while lending and nurturing young tech clients. The book demonstrates why the relationships between investors, start-ups, bankers, lenders, experts, lawyers, regulators, and community leaders are key ingredients for ongoing innovation in the tech industry. The book concludes with the sobering dissection of SVB's sudden death by $142 billion cuts inflicted by tech bros, social media, and the Federal Reserve Bank's successive interest rate hikes to squash the overheated economy.
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