In Boston, a bank that funds early-stage founders has become more than just a source of capital.
The news that Silicon Valley Bank was being shut down by regulators shocked the Boston startup community Friday. Focus immediately shifted to founders’ access to capital, which was largely cut off when the bank closed. But for Boston-area founders, investors and members of the startup community, SVB was more than just a bank. In interviews, members of the local startup scene told BostInno that SVB was a community-builder that went above and beyond to support early-stage founders.
‘An extra hand of support’
Renavest founder and CEO Stanley Rameau called SVB and its team an “extra hand of support.” Rameau recalled that during Boston Startup Week last September, he went to his first event at SVB’s space. Members of the SVB team, including Kristen Craft, director of startup banking, immediately started helping him connect with investors.
“They just opened their doors, opened their arms,” Rameau said. “(They asked) what is Renavest, learned about the business on the fly. Then it was like, ok, these are the perfect investors you should talk to.”
Then at Boston Fintech Week about a week later, the SVB team encouraged him to do his first public pitch at an event in partnership with Techstars Boston.
Rameau said SVB is a “pillar” in the community that hosts events that help founders take the next steps in their business.
Rameau was in the process of setting up an account with SVB when the news broke this week. Now he's waiting to see what happens.
There is speculation that SVB will be bought in the coming days by a larger bank, but for now, the future of SVB remains uncertain.
“I’m just hoping that whatever the transition looks like, it doesn’t look too different, at least for obviously (the SVB team) and the founders here in Boston,” Rameau said. “If the transition of the impact is big, then I think that presence will definitely be missed.”
The ‘number one events space for Boston startups’
Kylie Bourjaily, founder of InnoCrew, said that even if SVB Boston doesn’t continue to exist in the same capacity, she believes the people in the Boston office will continue to support local founders.
“I truly believe that the people that are at SVB’s Boston office are so passionate about Boston founders. And I don’t think they’re going to go anywhere,” Bourjaily said.
Bourjaily said the events SVB hosts in its space and those it partners with others to support have always been “very approachable, especially for super early-stage founders.” She called SVB’s space the “number one events space for Boston startups.”
Jordan Elster, associate development director at Innovation Studio, agreed that it was SVB’s events space that set them apart.
“I think that was one of their biggest differentiators was being able to have their own space and host their own events and partner with other organizations to really provide impact to the community,” Elster said.
Elster said if the SVB Boston office is not able to continue with its programming, other community groups would do their best to step in and pick up the slack. But he said SVB’s work is “not easily replicable.”
Beyond events, Bourjaily said the SVB Boston team helps founders find the resources they need. She said her first step after meeting a new founder is to connect them with SVB.
“Every time that happens, the founder reaches back out to me, and (says) this has been incredible, thank you so much. It’s very, very valuable because they are the go-to place for early-stage startups,” Bourjaily said.
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