Product details

Silicon Valley Bank (SVB), is a notable financial institution specializing in delivering tailored financial services to innovative companies, particularly in the technology, life sciences, and venture capital sectors. Established in 1983, SVB played a pivotal role in supporting the growth of startups, high-growth companies, and venture capital firms, boasting a reputation for understanding the unique financial needs of dynamic and innovative industries. The bank's comprehensive array of financial services and lending solutions, along with its global expansion and active involvement in industry events, positioned SVB as a key player in fostering collaboration within the innovation ecosystem. Despite its prominence, SVB faced a collapse due to various factors, including a lack of portfolio diversification and a strategic shift to long-term securities. The COVID-19 pandemic in 2020 exacerbated challenges, leading to a significant wave of customer withdrawals and, ultimately, a bank run. Regulatory intervention on March 10, 2023, saw SVB placed under the oversight of the Federal Deposit Insurance Corporation (FDIC). The aftermath of the collapse had far-reaching consequences for SVB's clients, especially startups, as many exceeded the FDIC limit on their deposits. To address the crisis, the FDIC announced on March 26, 2023, that First Citizens Bank would acquire SVB. This acquisition involved First Citizens Bank assuming the majority of SVB's deposits and loans, with the FDIC retaining control of a significant portion of assets and securities through its receivership. The estimated cost of SVB's failure was nearly $20 billion. All 17 branches of Silicon Valley Bank will operate under Silicon Valley Bank, a division of First Citizens Bank.