Silicon Valley Bank

California-based Silicon Valley Bank (SVB) wanted to strengthen its links with UK clients and tap into Europe’s growing band of technology venture outfits. Think London helped set up a UK subsidiary in the heart of the company’s client base.

The company

SVB group provides financial services to emerging growth and mature companies in technology, life science, private equity and premium wine markets. It delivers commercial, investment, merchant and private banking services and has dealt with more than 30,000 companies worldwide, including technology leaders Cisco Systems and Electronic Arts.

Aim

The company had been building relationships in Europe and the UK for many years, but sought a UK base to step-up business contacts and opportunities. It was attracted by the concentration of technology in and around London and decided to found a UK subsidiary.

Think London helped with:

• office location and set-up in Mayfair, central London — putting the company within easy reach of technology companies and private equity investors.
• making important introductions to key contacts, particularly during the early stages of establishing the company.

Market factors

• London is home to the largest concentration of IT software and services companies in Europe, which generate a turnover of $7.8 billion [1] . The London IT services market is growing at more than 7% per year [2] .
• some 19 of the top 25 European software and IT service suppliers have their HQ in London. All 25 are represented including Accenture, CSC, EDS, Compaq, Capgemini HP, Fujitsu, IBM, KPMG, Ernst & Young, Microsoft, Oracle, Infosys, Atos Origin, Wipro and TCS.
• London leads the way in the growth areas of mobile, broadband and wireless technologies and is at the forefront of developing Europe’s third generation wireless networks.
• find out more in Think London’s technology sector briefing.

Business success

Silicon Valley Bank’s UK subsidiary SVB Europe Advisors Limited was successfully set up in central London in 2004. SVB has been encouraged by the deals it has closed, providing high-growth technology companies with access to debt financing. Silicon Valley Bank now plans to consolidate its UK base before branching further into Europe and China.

In their own words

“London is a great hub for all of Europe but most importantly we saw plenty of opportunity to help emerging UK-based technology companies get the financing they need to grow.

The outside perception changes when you actually take up space. Having a presence in the UK is significant for us because London is a worldwide financial centre and being here signals that Silicon Valley Bank, through SVB Europe Advisors, is a reputable, global organisation.

There are opportunities for SVB to help entrepreneurs both on their way in and out of London — US companies breaking into the UK and British companies looking to establish themselves in the US. It’s a good market for us.

Think London was extremely helpful in directing us to locations and potential spaces that helped us become central to the technology companies and private equity investors we need to interact with. Their help was invaluable, helping us settle in physically and making important introductions in our early days in London.

There is plenty of opportunity to work with UK-based firms, since this type of financing is unusual.”

Andy Tsao
SVB Europe Advisors senior vice-president

For more information about Silicon Valley Bank, please visit www.svb.com

[1] London’s ICT sector is equivalent to £6.3 billion GVA The Economic Impact of Inward Investment on the London Economy (2004) DTZ Pieda Consulting
[2] Trends Business Research (2003) ICT in London