Background

SVB DAO formed on March 11, 2023, in response to the shuttering of one of the tech and startup industry’s most valuable partners, Silicon Valley Bank (SVB). At a time when the macroeconomic environment is incredibly volatile for small and large companies alike, SVB DAO intends to enable some meaningful ownership of this critical institution for the members of the community it has served for four decades.

Founded in 1983, Silicon Valley Bank identified the need for specialized banking services that cater to the unique needs of emerging technology and startup companies. Unlike traditional banks, SVB offered tailored credit solutions to promising early-stage companies, which were often considered too risky despite their disruptive potential and promise. In the past 40 years, SVB established itself as the preeminent financier of the innovation industry and built a strong brand as a result of its intimate understanding of startups and their needs and strong partnership and alignment with the overall venture capital industry. As of March 10, 2023, SVB operated across 29 offices in the US, with 12 international offices including the UK, Hong Kong, Israel, Canada, China, Germany, Ireland and Australia.

SVB’s importance in the startup ecosystem and the innovation economy cannot be understated. Prior to recent events, SVB was the 16th largest bank in the US with US $212 billion in assets and US $342 billion in client funds. The events of March 10, 2023, have deeply affected the entire venture capital industry from founders, employees, funders and service providers, and now threaten to destabilize the entire global innovation engine. With the tech industry now accounting for more than 10% of America’s GDP and over 12 million jobs, SVB’s potential collapse has major implications for the overall economy.

Garry Tan, president of Y Combinator, in response to recent events stated on CNBC: “The collapse of Silicon Valley Bank (SVB) in the US is an 'extinction level event' for startups and will set startups and innovation back by 10 years or more. BIG TECH will not care about this. They have cash elsewhere. All little startups, tomorrow’s Googles and Facebooks, will be extinguished if we don’t find a fix.”