Sillcon Valley Bank is back to business as usual in Atlanta, said Jordan Parcell, local managing director for the bank.
SVB was a key source of funding for startups across the nation until March, when a run on deposits caused the bank to fail and sent shockwaves through the tech industry. It was the second-largest bank failure in the country's history.
In late March, Raleigh, North Carolina-based First Citizens Bancshares Inc. bought SVB, which is continuing to operate under its own moniker and team after the acquisition.
Last month, SVB launched a nationwide advertising campaign called “Yes, SVB” to let people know the bank is back at work. One ad touts the bank's more than 100 loans totaling over $1 billion during the second quarter of 2023.
Some Atlanta startups are among those working with the bank.
“Here in the in the last several months, we've done our best to just continue to be present and build back any of the trust that we've lost with those clients and show up in a big way to really earn that back,” Parcell said. “There will always be a trust component that's important in in banking and in relationship building.”
Silicon Valley Bank's lessons
Parcell emphasized that First Citizens' acquisition would prevent any future run similar to the one that tanked the bank back in March. At that time, SVB had many clients with deposits that were uninsured beyond the $250,000 insurance limit.
But First Citizens has a more diverse deposit base and more liquidity. Currently, First Citizens can provide 198% liquidity coverage for uninsured deposits, Parcell said.
Atlanta tech experts and investors advise startups to diversify where their assets are being held, working with at least two banks to mitigate risks.
Parcell, who has been with SVB for 13 years, moved to Atlanta from Columbus, Ohio, in early March, just before the collapse. SVB has an office in Buckhead, near startup incubator Atlanta Tech Village.
Parcell said the Atlanta team is about the same size it was prior to the collapse and isn't planning an expansion right now.
"For a lot of us, we made the decision to stay with SVB ... because we continue to think it's the best place to support clients and in the innovation economy and it has a unique platform," Parcell said.
Silicon Valley Bank's Atlanta ties
Before the crash, John Yates, a prolific local technology attorney, estimated that as much as 40% of the Atlanta startup ecosystem had dealt with the bank.
Now, SVB has provided at least four Atlanta startups with venture debt recently:
- Rainforest, an embedded payments company. SVB provided Rainforest a a $3.25 million venture debt facility.
- Emrgy, a clean tech hydropower company. SVB provided Emrgy with a $4.5 million growth capital term loan.
- Presso, a dry clean vending machine startup. SVB provided Press with a $1.25 million growth capital term loan.
- Rev.io, an online billing system. The terms of the deal were not disclosed.
A spokesperson for SVB did not provide the exact number of startups the bank is working with.
Parcell said he expects SVB to provide funding to four more Atlanta startups in October.
