It was inevitable: With the boom in high-tech businesses startinghere, a high-tech bank has emerged to serve all those dot.comcompanies with advanced ideas for Internet commerce. That is a goodsign for the many Silicon Prairie companies that need forward-looking lenders to keep the cash flowing.
Business has been good since the California-based Silicon ValleyBank opened a branch in Rosemont two years ago. Loans to high-techstart-up companies were riskier then, but about 25 percent of thestart-ups that went public last year were Silicon Valley Rosemontcustomers.
As a "venture bank" that combines venture capital and traditionalbanking, Silicon Valley invests in clients, banking that their ideasand business plans will succeed. Instead of collateral, the banksometimes accepts warrants for stock.
Easier lending is just one way to attract these businesses. As theSun-Times reported last month in a four-part series, "High TechAgenda," they need flexible leases and a better-educated work force.
Gov. Ryan's allocation of $1.9 billion in his new budget fortechnology development and research also is a wise investment in theInternet-linked economy of the future.
No comments:
Post a Comment