00:00You have a really interesting perspective into how startups are doing a sort of startup barometer if you will. Are startups thriving now or are they rebounding or are they still suffering. So overall for all it's great to be here. Overall when you look at the startups they're doing really well now. It's concentrated. So it's not every single startup but the best companies are raising the most money. They're getting the most attention. They're performing exceptionally well. So you can look at the top 1 percent of the companies that are venture capital back. They've commanded 30 percent in the last quarter. Thirty percent of all the money that was raised. So it's being concentrated in the best companies. More money is being raised by venture capitalists to fuel these companies. And so I would say overall the innovation economy is doing incredibly well. And how easy is access to capital. I mean going into this pandemic it seemed like there was more money than ever chasing tech deals. And yet of course when it happened I remember that memo from Sequoia warning entrepreneurs to conserve cash doubled down. Look at how you can do more with less. How would you describe access to venture at this moment. Now that we're moving into a new normal. Yeah I think going back to where the epidemic started last year think it was a really interesting time. There was about a 30 day period thirty or forty five day period where everybody was was very concerned about what this could look like. And so it was conserve cash. Be very cautious of stop hiring all those things that you'd normally see when you have a dramatic market shift or economic shift. But then very quickly it shifted from you know we'll never do a deal where it's over resume to you know we did our first couple of deals and it actually worked really well. In fact it worked better. And all of a sudden starting in the second quarter you start to see the momentum start to build. And more of our clients were venture capitalists were doing deals in the second half. 2020 was truly incredible. And that's carried to in the first quarter of 21. So the level of venture capital has been incredible and the outlook based on fund raising by venture capitalists new funds being raised has also been exceptional. So that combination creates a tailwind. We certainly think that it's going to continue in twenty one in for a period of time to continue. So what kind of deals are you doing and what kind of deals are you not doing or are you shying away from. Well predominantly we are. We have four businesses so we can have four different things that we do. So predominately we're a commercial bank. So we work with roughly 50 percent of all venture backed companies roughly 60 65 percent of all venture capitalists. So we're doing a whole variety of deals. So lending to startup companies which most banks shy away from all the way up to multibillion dollar companies. So we kind of cover the entire debt capabilities as an institution but then we have a private bank soon to be. We'll be adding Boston private which we announced an acquisition January 4th. Hopefully at a close this summer. So our private banking capabilities will expand with our investment bank as living. They are doing really well. And then finally SVP capital where we invest in venture capital firms. So what's what kind of deals we do. It's really it's debt it's equity. It's helping with taking companies public. So literally it's across the board. And we think that's what's so compelling. Kind of a one stop shopping for the innovation economy. That's what gets us excited kind of every day. OK. Well you just celebrated 10 years as CEO. Congratulations on that and you've had a huge quarter three quarters in a row actually of double digit revenue growth. The last quarter first quarter of twenty twenty one was your best in history. What's driving that growth and is it sustainable as we go back or into a new normal whatever that is. Yeah well it's been a great it's been a great 10 years. I always tell people I'm confident I've got the best bank CEO job in the world and maybe one of the best CEO jobs mainly because really two things. One is the clients we get to work with which are the startups the innovators all the way again through these companies that are going public. It is incredible to work with them and partner with them. And that that innovation economy has been really doing so well so much money has gone into it. That's really been the catalyst for the growth that we've had over the last three quarters record quarters. Each of the last three quarters as we look out into the balance of this year you know as we articulate our outlook for the balance of 21 it was a very very positive outlook because the reasons I talked about earlier money's flowing in. Activity levels are picking up. Exits are very strong. So all those things are driving the innovation economy. And because of those four business units I talked about earlier and each one of them benefits from success in this industry. That's what's fueling the growth of the business. So you know as I've said over over many years being on the show the innovation economy is the best place to be. And I can't tell you what's going to happen from quarter to quarter but I truly do believe over the coming years that's the place to be from an industry. And we're very fortunate to be right in the middle of it.

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Innovation Economy Is the Best Place to Be: SVB CEO

Greg Becker, president and CEO at SVB Financial Group, shares the company's insights into the health of the U.S. startup ecosystem during the Covid-19 pandemic. A new research by SVB Financial Group and PitchBook finds that the SPAC market has raised a record $83 billion by the end of March, exceeding the total amount raised in 2020. Investors have also poured $69 billion into VC-backed firms in the first quarter of 2021, up 93% from last year. Becker also discusses the driver of the company's growth, which has skyrocketed during the pandemic. He speaks to Emily Chang on "Bloomberg Technology." (Source: Bloomberg)