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Startups

Silicon Valley Bank comes to Germany

It could be seen as a distinction for the German start-up scene: Silicon Valley Bank, which promotes start-ups and high-tech companies, is opening its German office in Frankfurt's Westend on May 29.

17 May. 2018 David Schahinian
Source: Silicon Valley Bank
Source: Silicon Valley Bank

Founded in 1982 , the bank has financed more than 30,000 start-ups with loans to date, as reported by gruenderszene.de . The following figures underline the bank's significance: with a market share of 25%, it's the market leader in Silicon Valley. Its clients include half of all US venture-backed tech and life science companies, according to the institute.

The bank has also been active abroad since 2004. The fact that Germany was chosen for its further expansion has to do with the innovative power of the local market, writes the business newspaper "Handelsblatt" , quoting the bank's European head Phil Cox. Finanz-szene.de reported back in November 2017 that the bank was conducting telephone interviews with German start-ups in order to test its market potential and positioning.

The move could certainly open up new opportunities for German founders. According to the start-up study conducted by the consulting firm PwC last year, start-ups rely mainly on bank loans for debt financing, while only a quarter benefit from public funding. However, according to the study, about half of founders have difficulties convincing investors that their business idea is worth backing.

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