Case | HBS Case Collection | March 2000 (Revised May 2001)

Silicon Valley Bank

by G. Felda Hardymon and Ann Leamon

Abstract

Silicon Valley Bank, a $4 billion institution in California, has made its reputation by working with venture capitalists in backing start-up companies. In 1999, it is forced to compete with nonbank financial institutions that can give money on better terms and in a market that is driven by momentum rather than fundamental value. What strategy should it use? The larger question: What is the appropriate role of bank financing in private equity?

Keywords: Banks and Banking; Business Startups; Competitive Strategy; Financial Institutions; Financing and Loans; Financial Markets; Venture Capital; Private Equity; Entrepreneurship; Banking Industry; Financial Services Industry; California;

Citation:

Hardymon, G. Felda, and Ann Leamon. "Silicon Valley Bank." Harvard Business School Case 800-332, March 2000. (Revised May 2001.)