Bank will cater to venture capital

Most new banks open with a single branch in a single city.

Square 1 Bank plans to open Monday with no branches but in multiple cities, including Seattle.

The Durham, N.C.-based bank does not need branches to tackle the market it’s after: venture-capital firms and the companies they invest in.

To reach that market, it has hired people in several of the country’s most vibrant high-tech markets, including Seattle, Durham, Palo Alto, Boston, Austin and San Diego.

Another big difference with Square 1 Bank is that its clients will find themselves paying more than interest and fees for their loans. Many will also be asked for warrants, which allow the bank to buy stock in the companies later.

That’s not unusual for banks catering to the venture-capital world, said Richard Casey, a founder and CEO of Square 1 Bank.

By Melissa Allison

Seattle Times business reporter

Full Story: http://seattletimes.nwsource.com/html/businesstechnology/2002421578_newbank05.html