If First Republic and Silicon Valley Bank change their policies, where will female, emerging and underrepresented founders bank?

Just last week, I was in Santa Barbara at an event organized by First Republic's Caroline Hale and her brilliant team (Stacy Allred, Bronwyn Bailey, Judy Lee Canalin, Madelaine Czufin, Kate McRoskey, Maria Menard, Meggie Ramirez and Suzie Shqair) to bring the female venture capital community together. We were all aware of the tumult that had pummeled First Republic in March, but the April 24 earnings call that so spooked the markets (and seemingly doomed the bank) hadn’t yet happened. Caroline and her colleagues were, as always, cool, calm, and delightful.

Looking back to those two very special days, jam-packed with thoughtful programming and carefully curated guests, it feels like we’re witnessing the end of an era. Silicon Valley Bank and First Republic defined what "high-touch" small business banking could mean. Our bankers at First Republic were always available over email or text. No question or concern was too small for them. They were incredibly knowledgeable about our business, served us well as wise counselors, and were always encouraging to female and minority fund managers. 

While First Republic will likely be swallowed up by a large bank (as of this writing, JP Morgan Chase, among others has been cited as a possible candidate), just as Silicon Valley Bank was, there is no guarantee that the high-touch service provided to small business clients will remain. And, who knows, it may even be impossible for new small female or underrepresented fund managers to remain clients of these banks. Why? Most female/underrepresented fund managers’ are managing less than $50 million. Most banks don’t make enough money from those funds to take them on. At least that was what we were told when we applied for a banking relationship with Chase earlier this year. We’ve heard many similar stories from other fund managers who sought new banks after Silicon Valley Bank fell.

Everyone at Supernode Ventures is thinking a lot about First Republic, and all of the wonderful bankers we’ve worked with who are likely worrying about their jobs right now. You are all incredible people; if First Republic changes under whatever happens next, we are sure you will land somewhere great. And we dearly hope that your next “somewhere great” fully appreciates what you each bring to the table—that deeply personal touch with your clients, no matter how big or how small they may be.  

-- Laurel Touby