Customers Bank Landing on Startups’ Short List
The following is a summary from Mark Calvey’s article showcasing our growth in Venture Banking during a recent interview with Sam Sidhu and Ken Fugate. You can read the full article here.
CEO Sam Sidhu and Managing Group Director Ken Fugate say Customers Bank is increasingly landing on the short list of banking partners for venture-backed startups—two years into a strategy focused on filling the gap left by Silicon Valley Bank’s (SVB) 2023 collapse.
With venture markets rebounding, IPO activity increasing, and fewer banks competing aggressively, Customers Bank is seeing growth and recognition among early-stage companies—and is now preparing to establish a physical presence in the Bay Area to deepen its foothold.
Key Highlights
- Emerging as a Preferred Partner: Customers Bank is consistently making the short list for startups seeking banking relationships. According to Fugate, term sheet competition has dropped from 7–10 banks per deal to a more manageable 3–4—with Customers in the mix.
- Veteran Venture Team at the Helm: Under Fugate’s leadership, the bank has built a venture banking team with talent from SVB, Square 1, First Republic, and Signature Bank—totaling roughly three dozen professionals nationwide focused exclusively on startups and venture-backed firms.
- Strength in the Series A Stage: Customers Bank often enters at the Series A round, aiming to build long-term, full-service banking relationships early in a startup’s lifecycle. “We can get in at any stage,” Sidhu said, “but we really do like to get into the Series A.”
- Momentum Amid a Thinning Pack: As competition normalizes, Customers sees the reduced field as a strategic advantage. “We’re very encouraged by the thinning of the pack,” Sidhu said. “It should really help accelerate and ramp up our business.” Midway through the quarter, a dozen new term sheets had already been signed.
- Normalcy Returns Post-SVB Collapse: The chaotic period following SVB’s failure has settled. Fugate noted that startups and investors are back to forming focused, efficient banking relationships, which benefits well-prepared institutions like Customers.
Customers Bank’s venture strategy is maturing—backed by talent, early-stage credibility, and a deliberate expansion to the West Coast. With market discipline returning and the innovation economy gaining strength, the bank is positioned to grow as a go-to partner for startups and VCs nationwide.