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SVB Puts Subsidiaries Up For Sale As HSBC Buys UK Unit

Illustration of money clip with $100 bills.

The slow dismantling of Silicon Valley Bank Financial continued Monday, as it it was seeking “strategic alternatives” for its capital and securities subsidiaries.

— a venture capital and private credit fund platform — and — an investment bank — are separate divisions of the parent holding company and are not part of itself, which is currently under the jurisdiction of the and the .

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It also was Monday that the bank’s U.K. unit — — was being bought by for a single British pound. SVB UK recorded a profit before tax of about $107 million last year.

The news comes less than a day after banking regulators announced a plan to ensure depositors at Silicon Valley Bank. SVB — the dominant financial institution for much of the venture-backed startup world — was shut down by banking regulators on Friday morning following a dramatic decline in the company’s stock price and reports of a run on its deposits.

Finding a buyer

Before the shutdown, the bank sought a sale, but that has proven to be a tough slog thus far for the financial giant.

On Monday, was in talks to acquire SVB Financial Group in a deal that would exclude commercial banking unit Silicon Valley Bank. , and also are in talks, per the report.

While some expected a big bank to step up as a buyer for SVB, its venture debt business may have been a hindrance, said a board member at an unaffiliated bank.

SVB took a chance lending to very young seed and Series A startups, something the does not approve of since those companies are not within a year of profitability.

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Illustration: Dom Guzman

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