> the bank has outperformed bigger rivals, not just by lending to fledgling firms but by taking small ownership stakes in them to help offset their higher risks<p>Doesn't taking equity in a company that you've already loaned money to _increase_ your risk, not offset it? Am I not understanding what's going on?
I think the Fed's easy money policy of low-interest rates prop institutional investors to park money with VCs for higher returns --- the combination of low-interest rates & lots of money in the valley enable SVB to capitalize on start-ups, unlike other banks. Curious to know if it was the same during the dot-com bubble
You would think the CEO Becker had heard enough dubious business pitches that later proved wildly successful that he would have enough common sense as to not brand Uber's plan as 'insane'.
"The bank is aggressive in courting investors as well, part of why it has become the 'first call' bank for many of them, said James Slavet, a Menlo Park, Calif., venture investor with Greycroft Partners."