Investment bank Stifel is eyeing an expansion into the VC ecosystem and is planning to increase banking and loan services for early-stage startups and VC firms.
The bank intends to fill the void left after Silicon Valley Bank's collapse. Last month, the bank hired Jake Moseley, Matt Trotter, and Ted Wilson, all former partners at Silicon Valley Bank, as managing directors.
- Stifel has over $30B in assets under management.
- The
bank's existing venture division focussed on providing loans and
banking solutions to Series B and later startups in the technology and
healthcare industries for the last five years.
- With the three new hires, the bank aims to cater to venture-backed seed and Series A startups.
- Additionally, Stifel aims to extend capital call lines to VCs, PEs, and real estate funds.
- It has allocated $9B in capital call lines and $1B in venture debt to several funds so far.
- The bank considers venture banking to be a safe business.
- Stifel's
venture banking business head Brad Ellis said, "Historically in venture
banking, the loss rates have been extremely low — especially if you
blend a portfolio like SVB constructed and what we are doing."
