Oct. 11, 2023 (SFChronicle.com)
Silicon Valley Bank survived a near-death experience in March after its tech-heavy clientele rushed to pull out billions of dollars in deposits, leading to government seizure and ultimately its sale to First Citizens Bank.
Now the bank is making its presence felt at a downtown San Francisco events space by bringing energy to the area, which is struggling to recover from the pandemic.
Branded as the SVB Experience Center, the 120-seat venue at 532 Market St. opened in the spring after the banking crisis passed. SVB has been regularly hosting events featuring venture capitalists and tech founders as the Bay Area sees massive hype around artificial intelligence.
“Obviously this past spring we had our challenges, but the great news is that six months on, we’re back,” said Andy Tsao, managing director of SVB’s Global Gateway, a division that works with tech firms and investors in emerging global markets. “This space and the events that we do highlight the fact that we are back and eager to reengage with the community.”
SFNext is Chronicle coverage devoted to the city’s most vexing problems.
To become involved: Send feedback, ideas and suggestions to sfnext@SFChronicle.com
Tsao spoke last week at an event in the glassy, circular space with venture capital firms and startups, with topics including fundraising, using tech for finance, climate and health care and, of course, AI.
“Having a space like this is fantastic. It’s very well received by founders and the ecosystem in general,” Tsao said.
With an abundance of tech conferences such as Dreamforce and Techcrunch Disrupt last month at nearby Moscone Center, “we were utilizing this space around the clock” as the tech industry was eager to socialize, he said.
Organizing gatherings that give people a reason to go downtown rather than relying on office workers or shoppers to trickle back is aligned with a revitalization strategy that urban planners, city officials and hospitality investors have endorsed.
The city has eased zoning restrictions to promote more entertainment uses, and new bars and restaurants are popping up, including at historic venues.
But one of the biggest challenges is the cost of transforming spaces, real estate investors have said. Construction work at SVB’s space cost an estimated $325,500, according to building permits filed with the city.
The events space still has remnants of its history as a financial facility, including a bank vault door in its basement. It has been home to a string of companies including Wells Fargo, retailer Sharper Image and dot-com era broker Web Street Securities, which was later sold to ETrade, which last used the space as a branch.
The Get Involved calendar
Search for public meetings on top San Francisco issues so you can add your voice.
Calendar Submit an event More coverage
Tsao sees irony in that SVB doesn’t have that many retail branches — only 17 as of March — but now operates a physical events space with a banking heritage.
He said that though the worst of the banking crisis has passed, the venture capital sector and tech economy is still in a “corrective state.” U.S. venture capital investments totaled $39.8 billion in the second quarter of 2023, plunging 48% from a year earlier, according to research firm PitchBook. Tech layoffs are also ongoing.
“The one area that you can point to to say, ‘Oh, my gosh, there’s so much excitement’ is AI, and there’s no question that there’s a lot of energy and buzz around that,” he said.
Reach Roland Li: roland.li@sfchronicle.com; Twitter: @rolandlisf
Roland Li covers commercial real estate for the business desk, focusing on the Bay Area office and retail sectors.
He was previously a reporter at San Francisco Business Times, where he won one award from the California News Publishers Association and three from the National Association of Real Estate Editors.
He is the author of “Good Luck Have Fun: The Rise of eSports,” a 2016 book on the history of the competitive video game industry. Before moving to the Bay Area in 2015, he studied and worked in New York. He freelanced for the Wall Street Journal, the New York Times and other local publications. His hobbies include swimming and urban photography.
©2023 Hearst Communications, Inc.
