RALEIGH – Just what does the acquisition of Silicon Valley Bank by Raleigh-based First Citizens Bank mean for the Triangle and North Carolina?

First Citizens announced its acquisition of Silicon Valley Bank (SVB) late on Sunday, causing First Citizen’s shares to soar by 52%. The move has been met with positivity from Wall Street as well, with many investors seeing it as a smart move for the bank.

Customers of SVB will automatically become customers of First Citizens, with the 17 former branches of SVB opening as First Citizens branches this week.

What does this move mean for Raleigh? WRAL TechWire asked a few ecosystem leaders to weigh in.

Silicon Valley Bank buy delivers shock and awe, opportunity to Triangle, investors say

Jim Verdonik, veteran startup attorney

Jim Verdonik, veteran attorney focused on startups, mergers & acquisitions, and tech IPOs, had this to say:

“I note that First Citizens expanded over a decade ago by buying up troubled banks after the 2008 bank crisis.

The 2008 crisis made First Citizens a national financial player.

They just did it again buying Silicon Valley Bank.

The formula for success is:

  • Avoid the temptation to do crazy things when everyone else is.
  • Keep your powder dry for when bargains are available.
  • Scoop up the businesses who went crazy when they fail.

Something for all of us to remember.”

Raleigh-based First Citizens to acquire Silicon Valley Bank; shares soar 52%

Thom Ruhe, NC IDEA

Thom Ruhe, President & CEO of NC IDEA Foundation, told me that he thinks there is a “cultural opportunity” with this strategic acquisition.

“SVB was part of a valley narrative that amplifies certain unicorn-inspired norms that pressure many Founders to conform to this narrative, even if it doesn’t accurately reflect the founder’s ambition for their company,” Ruhe told me in an email interview.

He described SVB as “a clique that you HAD to join if you were going to raise millions and have a fantastic exit.”

But he thinks that this could change after the acquisition.

“With First Citizens Bank acquiring SVB, there is an opportunity to reset expectations around principled growth and sound financial practices that won’t suggest you need to be funded by a group from Sand Hill Road in Palo Alto to be successful,” said Ruhe.

He also shared that he thinks this could be an opportunity for First Citizens to establish a “new norm.”

“First Citizens has a fantastic opportunity to flip the script and equitably support many more high-potential startups that don’t necessarily have to ‘go fast and break things’ to succeed,” said Ruhe. “A new norm that simply and objectively focuses on growth potential may prevail while leaving the nostalgia for others who still cling to a cliched narrative with limited participation in entrepreneurial success.”

NC IDEA just announced the 24 semi-finalists for its 35th SEED grant cycle; learn more here.

Kelly Rowell, CED

Kelly Rowell, President and CEO of the Council for Entrepreneurial Development (CED), told me she didn’t have a strong opinion yet on the “developing situation.”

But she did tell me that banking volatility in general will be a hot topic at Venture Connect 2023 (VC23), the annual conference and pitch event hosted by CED. The event will be held this Wednesday and Thursday at the GSK Campus in RTP.

The CED team announced yesterday that VC23 would feature a brand-new panel to dive into the topic. Here’s an early description of that panel that Rowell shared with me:

Banking Uncertainty? A better understanding of banking and treasury management options
Silicon Valley Bank has been an integral partner in the venture community for 40 years. Its sudden collapse has caused anxious moments for founders, bankers, and venture funds for the past several weeks. Hear from Brad Schomber, CFO at Get Spiffy, Nikki Heron CFO at Tavros Therapeutics, Dara Keatts Director of Innovation Banking at CIBC, Elizabeth Orsinger SVP of Pacific Western Bank, and Gregg Bordes, Managing Partner at Front Porch Venture Partners for a frank and up-to-date discussion on how you can best navigate banking options, build strong banking relations, and ensure your company’s long-term financial stability.

Learn more about VC23 here.

Startups form a big parade: 180 to make pitches at Triangle venture event

Jim Roberts, NEW

Jim Roberts, Founder of the Network for Entrepreneurs in Wilmington (NEW) and Wilmington Angels for Local Entrepreneurship (WALE), told me that he thought the rumors about First Citizens looking to buy SVB was just a “PR/Marketing trick stunt.”

But now that the deal is done, Roberts believes this could be a “HUGE positive” for the ecosystem, he told me in an email interview.

“Traditional banks in North Carolina have not participated in the startup innovation ecosystem,” Roberts told me. “We would hope they begin to raise their profile in the region by sponsoring organizations and events and educating the entrepreneurs on what is possible with this kind of banking services.”

He also told me that there is a need, in the North Carolina market, for a bank that is “friendlier to startup entrepreneurs.”

For startups in the area, he shared a point of advice.

“Ideally, the smart entrepreneurs will have their cash in multiple banks including minority-owned banks like Bill Spruill and others have been doing,” Roberts told me.

NEW is hosting an event on April 13 in Wilmington, “Raleigh Serial Entrepreneur Speaks on Cahllenges for Scaling Startups.” The event will feature serial entrepreneur and investor Scot Wingo. Learn more here.

Tom Snyder, RIoT

Tom Snyder, Executive Director of RIoT, told me this could be an example of how the Triangle is replacing Silicon Valley (SV) as the next big tech hub.

“Mostly that’s a story of speculation and hype,” Snyder told me in an email interview. “I’m less convinced personally that where the money is, is necessarily where great tech happens. But the opposite could be true—where the money is, can attract tech-founders to relocate to be proximate. That’s what the last 25ish years in SV have been. Riding the coattails of an early grass-roots built tech boom, then sustaining that reputation by drawing tech expertise from around the world to relocate their businesses to SV.”

To talk with more RIoT team members about their perspective, consider checking out their next event, “The Tech Behind Femtech.” The panel will be hosted on April 4 at Blush Coworking, the female-centric coworking space in Cary. Learn more here.

24 startups from coast to mountains are semifinalists for $50,000 NC IDEA grants