In this week’s newsletter: While its quick slip into financial hardship has left American bankers reeling, its UK division is surprisingly fine. But the tech sector isn’t out of trouble yet
UK, you probably worked in tech. The bank had only been spun out in to a separate entity last summer, after its few thousand corporate customers pushed it over a regulatory threshold, and while SVB had grown to almost hold £10bn of deposits, with £5.5bn of outstanding loans, it was very much a specialist player.
Like its British subsidiary, the US division specialised in providing banking to startups. And it offered a much wider range of services: not only could your startup get a credit card, but you as a founder could get a mortgage, or a loan that let you exercise stock options. There were even deals with venture capitalists that saw some companies receive funding that was conditional on them banking with SVB, letting it offer a truly cradle-to-grave service for companies.
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