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-- of course a breeding ground for innovation startups it's also powered the growth of a bank with the Midas touch.
For spotting winners I mean we all want to be able to spot the winners and get in early but very hard to do that.
Gregory Becker SVP financial group in silicon valley bank CEO and president.
Joining me now in a Fox Business exclusive from Mountain View California Craig it's terrific to have you let's just explained you've been a lender.
Two up both the venture capitalists who finance the seed money to these startups but also directly to the company's correct.
Yes -- for -- thanks for having me on the show.
So first of all -- a commercial bank we work with innovative companies so the companies from start up.
All the way until -- become large public companies we have about 50% market share of all companies in the United States and increasingly global.
That are backed by venture capitalist plus we bank about two thirds of the venture capital firms in the US so.
This is a market that -- in -- commercial banking we provide lending services and products and services to help these companies grow and become big companies.
What plus your publicly traded company -- -- more than 15%.
Over the past year the S&P is is up about.
About twenty less than that certainly am so -- -- outpacing that this is a way for investors to listen to -- story here explicitly on fox business and decide.
You know is this the stock that can get me involved in some of these names so.
Greg how do you decide if a company is worth lending too because in the early stages these fees the people running -- -- the -- is -- a little raw aren't -- Yet there's I think it's important understand our business model so.
Although we work with companies that are very early stage and again we bring in -- thousands accompanies their early stage.
We work with some of them then but we also work with them as they grow and become bigger so it's not just about -- early stage companies it's about working with them as they grow and become very large companies -- At their early stage it's really important understand.
What their business model is how -- is who their investors are who they compete with and I think that's what we do really well.
Because we work with 50% of all venture backed companies we have a really broad perspective of which companies are going to be doing better than other companies.
And I think that history of thirty years of doing this we built up a really strong knowledge base of which ones to work with and which ones to be a little more cautious.
How do you tell by the damn well what's -- screaming red flag right off the bat -- the kid walks in and a T shirt well I guess Zuckerberg always -- -- -- but.
Seriously how how you tell us one's a real winner down the road.
Yet I think you have to look at what what markets are going after and what's hot right now -- companies in the mobile space -- look at security you can look at personalized health.
She really have to understand what market they're going after and again because our teams of people our relationship managers spend all their time in the market I can a look at what we do is pattern recognition.
If you look at the investors you look at.
What market they're going after you look at what's -- about them and it's all those pieces together and allow us to really be successful in working with these companies.
It's not easy but I think again our history really has demonstrated that we can do it.
Effectively and we can still grow at a very rapid.
-- -- you just said Greg that the trend seems to be a lot of mobile out there does that mean you're shifting away from things like online or perhaps hardware what is the hot trend right now.
-- -- -- -- broadly and innovation sector so I wouldn't say we're shifting away from anything -- we work with all kinds of hard work companies and software company's mobile are clearly on new companies doing that.
Life sciences clean tech so it's really broad based I wouldn't say we're moving away from everything or any thing.
It's really the whole innovation economy.
It's important to note that even -- our -- -- Silicon Valley it's not just about Silicon Valley we have offices all over the US and increasingly around the world as well.
You're still back and recently JPMorgan put out this list of banks that are most likely to benefit from rising interest rates and you were on there OK there were some other names -- -- financial flagship signature was Webster financial.
What are you waiting for higher interest rates at do you think this will at least we'll start to see -- how closely do you out there watch what's happening.
At the Federal Reserve.
So we are -- very asset sensitive bank and what that means is that.
As rates go up short term interest rates.
Our loans re pricing we tend to make more money.
A lot of what's happening right now is in the long term interest rates and what we get some benefit from that.
It's about the short term interest rates now when is that gonna happen I don't know your crystal ball in my crystal ball or -- cloudy as anybody else's.
But -- you know I think it's gonna happen price sometime next year and we would benefit from that but.
It's important from our standpoint that that was supposed to be happening over the last five years and we're not we're not betting on that.
So our strategies about building out a really diversified product set going global.
And if interest rates happen that's great kind of icing on the cake but -- -- betting on that.
Good to have your perspective -- Greg thank you very much for joining us exclusively your earnings killed it right out of the park the stock -- 52% year over year ticker symbol SID.
Be -- -- backers the CEO thank you so much good to have you.
Thanks -- might want -- list.
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