Business appears to be back to usual at the beleaguered Silicon Valley Bank, which earlier this year collapsed following a bank run and was then acquired by Raleigh-based First Citizens Bank (Nasdaq: FCNCA).
SVB, whose name and operating unit First Citizens has retained, recently closed a major debt financing deal with San Francisco startup 6sense, offering the company $100 million in a senior secured revolving credit facility. And Wednesday, the bank loaned $50 million to a San Mateo company, Achieve, a fintech that offers loans of its own.
The bank was renowned as a major lender to local startups and many feared its collapse would have indelible effects on the startup ecosystem's ability to access capital, especially during the current market downturn where startups struggle to access funding.
When asked about the deals, SVB said it was one of many completed since its acquisition by First Citizens on March 27.
"Silicon Valley Bank has been doing many loan deals of all sizes throughout, and since, the acquisition by First Citizens Bank (FCB)," an SVB spokesperson said in an email. "Our loan products and services are the same as they were prior to the acquisition. The recent debt facility with 6sense is one of many recent deals and it is one the largest we’ve announced since becoming a division of FCB."
The bank also participated in a $200 million funding of Denver-based Pivot Energy in May, where it provided an undisclosed amount of debt as part of the deal, and provided Indian startup Pocket FM with $16 million of debt that same month. It also provided a loan of an unknown amount to Georgia-based startup Presso in May.
In April, SVB loaned $100 million to Austin-based 8fig and $2.5 million to Massachusetts-based OPT Industries, according to Pitchbook.
These deals may mark a return to form for SVB and a sign that its new owner, First Citizens Bank, wants to continue its legacy as a prominent startup lender.
CEO Frank Holdings Jr. has previously made statements along those lines. "We're committed to continuing to help you move bold ideas forward and deliver the speed, creativity and flexibility to help you achieve your ambitious goals," he said in an email to SVB clients in March.
While the newly acquired SVB has been active providing startups with loans, it has been much less so than when it was independent. Over the same period last year (April-June 2022), the bank participated in 14 deals providing debts to startups, according to Pitchbook, three of which where SVB loaned over $100 million.
