Silicon Valley Bank Mode and Its Implication on Financing of S&T SMEs in China

In China, Science and Technology-oriented Small and Medium-sized Enterprises(S&T SMEs) are a main force in new high-tech industry development, an incubator in the commercialization of research findings and an important economic growth pole. Financing difficulty is one of the most important factors that obstructs the development of S&T SMEs. China government has taken lots of measures to support the financing of S&T SMEs, but the scales of existing channels are so small that they can not satisfy S&T SMEs' financing demands. By analyzing the development mode of Silicon Valley Bank(SVB) in America, we believe it is a feasible way to establish science and technology-oriented commercial banks that specially serve S&T SMEs, but two essential conditions including developing venture capital(VC) and strengthening credit circumstances are required.