This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-18368713#sa-ns_mchannel=rss&ns_source=PublicRSS20-sa
The article has changed 2 times. There is an RSS feed of changes available.
Previous version
1
Next version
Version 0 | Version 1 |
---|---|
Silicon Valley Bank targets UK technology sector | Silicon Valley Bank targets UK technology sector |
(about 9 hours later) | |
By Matthew Wall Business reporter, BBC News | By Matthew Wall Business reporter, BBC News |
Silicon Valley Bank, the US hi-tech bank with $20bn (£13bn) in assets, opened its first UK branch on Monday, offering banking and loan services to the UK tech industry. | |
Chancellor George Osborne said the move proves "the UK is fast becoming the technology centre of Europe". | Chancellor George Osborne said the move proves "the UK is fast becoming the technology centre of Europe". |
The bank will target the technology, life science, private equity and venture capital sectors. | The bank will target the technology, life science, private equity and venture capital sectors. |
Tech companies Shazam and The Foundry are already UK clients. | Tech companies Shazam and The Foundry are already UK clients. |
Phil Cox, SVB's head of UK, Israel and India, told the BBC: "We've already lent hundreds of millions in the UK but we're looking to increase this to billions very quickly." | Phil Cox, SVB's head of UK, Israel and India, told the BBC: "We've already lent hundreds of millions in the UK but we're looking to increase this to billions very quickly." |
Mr Cox said the bank would be making loans of between £300,000 and £30m to established companies looking to expand. | Mr Cox said the bank would be making loans of between £300,000 and £30m to established companies looking to expand. |
"Building on our credentials of supporting technology firms in the US, we are excited to be able to help the UK's entrepreneurs meet and exceed their ambitious goals," he added. | "Building on our credentials of supporting technology firms in the US, we are excited to be able to help the UK's entrepreneurs meet and exceed their ambitious goals," he added. |
Silicon Valley Bank, a subsidiary of SVB Financial Group, counts Cisco Systems, Mozilla and Pinterest, among its US clients. | Silicon Valley Bank, a subsidiary of SVB Financial Group, counts Cisco Systems, Mozilla and Pinterest, among its US clients. |
It claims that more than half of all venture capital-backed technology and life science companies bank with the group. | It claims that more than half of all venture capital-backed technology and life science companies bank with the group. |
In the US it has made $7bn in loans and holds over $17bn of client funds. | In the US it has made $7bn in loans and holds over $17bn of client funds. |
Julie Meyer, managing partner of the ACE Fund, an early-stage digital seed fund, told the BBC: "What an endorsement of the UK tech scene this is - that an important institution such as Silicon Valley Bank - the beating heart of the Valley - has come to the UK to bank its entrepreneurs. | Julie Meyer, managing partner of the ACE Fund, an early-stage digital seed fund, told the BBC: "What an endorsement of the UK tech scene this is - that an important institution such as Silicon Valley Bank - the beating heart of the Valley - has come to the UK to bank its entrepreneurs. |
"This should cause the other UK retail banks to work a little harder or think more constructively about how to bank the UK's best high-growth tech firms." | "This should cause the other UK retail banks to work a little harder or think more constructively about how to bank the UK's best high-growth tech firms." |
Mr Cox argues that existing retail banks are failing to serve smaller tech companies who may not have three years worth of accounts yet or even any sales. | Mr Cox argues that existing retail banks are failing to serve smaller tech companies who may not have three years worth of accounts yet or even any sales. |
The new UK branch is at 41 Lothbury in the City of London. | The new UK branch is at 41 Lothbury in the City of London. |
Funding gap | Funding gap |
In a separate development, a new local bank, Cambridge & Counties, is launching to service established small and medium-sized businesses struggling to find alternative finance. | In a separate development, a new local bank, Cambridge & Counties, is launching to service established small and medium-sized businesses struggling to find alternative finance. |
The bank estimates that 60,000 loan and overdraft applications worth £3bn were rejected by banks in the second half of 2011. | The bank estimates that 60,000 loan and overdraft applications worth £3bn were rejected by banks in the second half of 2011. |
It will be jointly owned by Cambridgeshire Local Government Pension Fund and Trinity Hall, the Cambridge University college. | It will be jointly owned by Cambridgeshire Local Government Pension Fund and Trinity Hall, the Cambridge University college. |
Previous version
1
Next version