40 Years Of Silicon Valley Bank: From Fame To Failure

The collapse of Silicon Valley Bank (SVB) has sent shock waves through global financial systems, leaving many to wonder how the U.S.'s 16th largest lender in terms of assets, which served thousands of innovative tech startups, could break. Here's a brief look at how the now-defunct bank rose to fame and fell to ruin.

- OLA NOURELDIN

1983 

The concept for SVB was envisioned by Silicon Valley businessmen Bill Biggerstaff and Robert Medearis over a game of poker. The bank opened its first office in San Jose in 1983 to provide innovative banking and credit services to support tech startups.

1987

SVB went public and began trading stock on Nasdaq under the symbol SIVB, and completed its IPO in 1988 by raising $6 million in equity.

1992

SVB diversified into the high-risk real estate loan business, which reportedly amounted to 50% of its portfolio by the early 1990s, leading to the bank's first net loss.

1996

The rise of computer technology companies in the U.S. led to an inflow of clients seeking lending from the bank. By 1996, SVB reportedly had around 2,000 clients, including Cisco Systems and Bay Networks. The bank expanded across the U.S.

2002

SVB entered the private banking business, by launching broker-dealer subsidiary SVB Securities; acquiring Woodside Asset Management, personal investment advisor.

2004

The bank announced an international expansion drive in 2004, with new operations in Bangalore and London.

2008-2009