What is silicon valley bank ??

Silicon Valley bank is a bank which provides loans and financial support to startups...........

15 points about  Silicon Valley bank

1.   Silicon Valley Bank was founded in 1983 by former Bank of America managers Bill Biggerstaff and Robert Medeiros to focus on the needs of startup companies.
 

2.   Silicon Valley Bank was an USA based state chartered commercial bank which provide financial support to startups and it’s headquarter is in Santa Clara, California US.
 

3.   Silicon Valley is a region in Northern California that serves as a global center for high technology and innovation. Located in the southern part of the San Francisco Bay Area, it corresponds roughly to the geographical area of Santa Clara Valley. And Silicon Valley Bank name is derived from Silicon Valley.
 

4.   Silicon Valley Bank was the 16th-largest bank in the United States and was the largest bank by deposits in Silicon Valley. Silicon Valley Bank operated branches in California and Massachusetts. 
 

5. When Silicon Valley Bank was founded, the banking industry did not have a good understanding of startup companies, particularly those that lacked revenue. The bank structured its loans with the understanding that startups do not earn revenue immediately, managing risk based on their business model.
 

6.   The bank got very profitable during dot-com bubble or dot-com boom (was a stock market bubble in the late 1990s. The period coincided with massive growth in Internet adoption, a proliferation of available venture capital, and the rapid growth of valuations in new dot-com startups). 
 

7.   Most of the branches of this bank was at technology hubs and center cities of information technology throughout the country, and this bank used to provide loans especially to IT based startups.
 

8.  In 2003, the bank sponsored three high-profile international trade missions to Bangalore, Mumbai, Tel Aviv, Shanghai and Beijing, bringing along a delegation of two dozen Silicon Valley venture capitalists along to meet with local investors, entrepreneurs, and government officials, as a prelude to opening international offices. It announced an international expansion drive in 2004, with new operations in Bangalore, London, Beijing, and Israel.
 

9.  The bank's customers were primarily businesses and people in the technology, life science, healthcare, private equity, venture capital and premium wine industries. It was influential among startups in India, being unusually willing to serve C corporations whose founders lacked Social Security numbers. Despite banking a high-tech sector, the bank was criticized for having old technology and lacking biometric authentication.
 

10.  In February 2023, Forbes listed the bank as #20 of "America's Best Banks" with a 13.8% return on equity. In March 2023, Moody's Investors Service rated the bank's loan portfolio as conservative and high-performing. The bank's overseas subsidiaries held $13.9 billion in deposits.
 

11.   The bank was primarily administered from its headquarters in Santa Clara, California and from an office in Tempe, Arizona.
 

12.   The bank's parent, Silicon Valley Bank Financial Group, launched sister subsidiaries to Silicon Valley Bank which operated investment banking and private banking services from offices in Canada (Toronto), the Cayman Islands (Grand Cayman), China (Beijing, Shanghai, Shenzhen), Hong Kong, India (Bangalore), Ireland, Israel (Tel Aviv), Sweden (Stockholm), Denmark (Copenhagen), Germany (Frankfurt) and other countries of the European Union and commercial banking services from an office in the United Kingdom (London).
 

13.   Since 2002, the bank made more than $2 billion in loans and investments to developers. Also it provided $1.6 billion loans to build housing in Silicon Valley California. It also provided free banking service to numerous non-profit organization in California.
 

14.   In 2022, Silicon Valley Bank began to incur steep losses following increased interest rates and a major downturn in growth in the tech industry, where the bank's liabilities were heavily concentrated. As of December 31, 2022, Silicon Valley Bank had mark-to-market accounting unrealized losses in excess of $15 billion for securities held to maturity.
 

15.   Early in the morning of March 10, examiners from the Federal Reserve and the FDIC arrived at the offices of Silicon Valley Bank to assess the company's finances. Several hours later, the California Department of Financial Protection and Innovation (DFPI) issued an order taking possession of Silicon Valley Bank, citing inadequate liquidity and insolvency, and appointed the FDIC as receiver.

**On March 17, 2023, Silicon Valley Bank's parent company, Silicon Valley Bank Financial, filed for Chapter 11 bankruptcy.