Best for: Commercial banking and venture debt lending
Why it’s on this list: In 2022, Silicon Valley Bank said it served nearly half of all tech and healthcare venture-backed startups in the US. The next year, it collapsed.
Founded in 1983, SVB became extremely popular in the Bay Area in the 2010s and early 2020s by catering to venture-backed startups, beginning to work with companies at their earliest stages and offering them flexible financing like venture debt that traditional banks stayed away from.
In March 2023, however, SVB took a $1.8 billion loss after selling a portion of its securities and sought to raise capital to offset the loss. Instead, the capital call triggered a bank run, leading to the second largest bank failure in history.
First Citizens Bank bought Silicon Valley Bank later the same month, and SVB continues to provide venture-focused banking today. For many startups, the damage was done. One investor said that there’s “still too much scar tissue” for some tech entrepreneurs to feel safe continuing to bank with SVB.
SVB acknowledged the reputational hit in an email to BI. The bank said it retained the majority of its customers after the bank failure, albeit some with reduced deposits. The firm added that some startups that left SVB after the collapse have since returned, noting that the bank added more than 1,000 new clients in the first six months of 2025.
Several founders and investors, including multiple sources who still bank with the firm today, praised SVB’s high-touch approach, citing its ultra-responsive customer service, easy-to-use checking accounts, and collaboration in times of crisis. Investors also highlighted the firm’s venture debt offerings, which one VC called “quick, flexible, and generous.”
“We aim to earn the trust and business of the innovation economy every day with relevant financing solutions, excellent service, and products that help startups, large innovation companies, and investors meet their ambitious goals,” said SVB president Marc Cadieux in a statement to BI.
