Grasshopper Bancorp is launching in New York with more than $100mn from investors to challenge Silicon Valley Bank as a go to funding option for startups; the new digital bank raised $116mn from T. Rowe Price, Patriot Financial Partners LP, Endeavour Capital Advisors Inc. and FJ Capital Management LLC; the bank is a venture bank which takes deposits from startups who have raised money from VC investors; the bank also has plans to lend money to more established companies, venture banks lend against the deposits they collect from startups; Grasshopper Chief Executive Judith Erwin believes they have built a better lending decision system based on a startup’s cash burn. Source.
