Greg Becker, Silicon Valley Bank president and CEO.
Tech companies weren’t the just ones to incentive from 2014’s robust venture funding and IPO launches.
Tech and venture bank Silicon Valley Bank’s deposits totaled $31.47 billion as of Sept. 30, a 55 percent boost from the year before. The California-based bank has actually a presence in Tempe.
“It’s an industry-wide trend,” said D.A. Davidson & Co. analyst Gary Tenner of the bank sector’s deposits growth. “It’s merely that at Silicon Valley Bank, it’s been a little a lot more extreme, which I believe would certainly be a function of the strength of the tech sector.”
The bank focuses on the technology, life sciences, venture capital and private equity sectors. According to the bank, its clients consist of 50 percent of venture-backed companies and 60 percent of VC firms in the U.S.
The bank’s net income for the initial 3 quarters of 2014 was $194.3 million, a 39 percent boost from the exact same time period in 2013.
Besides an boost in venture funding, Silicon Valley Bank President & CEO Greg Becker said growth came from an unprecedented degree of brand-new firm formations that allowed the bank to delivering in a tape-record lot of brand-new clients.
“The capital efficiency of these businesses (means) they don’t necessarily demand as a lot capital to grab started. That’s truly been a crucial driver,” said Becker, who’s been president due to the fact that 2008 and CEO due to the fact that 2011.
Other vital gamers in the tech and venture space consist of Wells Fargo, Comerica and City National Bank.
Tenner and Sandler O’Neill & Partners analyst Aaron Deere said Silicon Valley Bank’s triumph has actually attracted a lot more competition to the space.
“A great deal of bankers might consider it and say ‘They’re various as a result of their tech niche …'” Tenner said. “However I believe (they additionally say) ‘Hey, I believe we can easily grab several of that tech sector too.'”
Bryce Druzin is a reporter at the Silicon Valley firm Journal.