Meet the Expert: Venture Fund Banking with Sam Heshmati and Vincent Timoney of Citizens Private Bank

Follow me @samirkaji for my thoughts on the venture market, with a focus on the continued evolution of the VC landscape. In this episode, Sam Heshmati and Vince Timoney from Citizens Private Bank stop by to talk about all things venture banking and how the industry is recovering from the 2023 regional banking crisis. Sam and Vince, both of whom have extensive experience in the banking sector, share their insights on the challenges faced during this period, including the impact on startups and venture funds. They also discuss the significant changes in the banking industry since the crisis, such as the increased cost of capital, the fragmentation of fund banking services, and the shift in how banks serve emerging managers and venture capital firms. The conversation provides a detailed look at the current landscape of banking for the venture ecosystem and how Citizens Private Bank is positioning itself to help clients navigate these challenges. About Sam Heshmati:Sam Heshmati is an Executive Managing Director at Citizens Private Bank, heading the emerging VC and innovation practice. Previously, he co-founded and led programs serving the VC and tech community, cultivating and managing relationships with some of the nation’s top emerging managers, accelerators and entrepreneurs at the former First Republic Bank. He has over 21 years of experience in the technology ecosystem, serving clients not only as a banker, but as trusted partner with the expertise needed to help navigate important decisions within this space. Over his career, he has worked with more than 1000 early-stage VC firms and several thousand venture-backed startups. Prior to joining First Republic Bank in 2012, he spent 10 years as a tech banker at Silicon Valley Bank and Square 1 Bank. He earned a bachelor’s degree from San Jose State University. About Vincent Timoney:Vincent Timoney is a Senior Managing Director at Citizens Private Bank, serving the fund finance and innovation economy nationwide. He has more than 12 years of experience working with VCs in business development, sales, lending and relationship management roles within the venture capital and technology ecosystem. In this episode, we discuss: (01:34) The evolving importance of banking, especially after the events of 2023. (02:16) Banking Crisis of 2023 triggered by the collapse of Silicon Valley Bank and First Republic Bank. (04:00) The impact of Silicon Valley Bank on the venture ecosystem and the rapid sequence of events leading to its downfall. (07:00) How the banking industry has changed post-crisis, focusing on client expectations and digital banking. (08:30) The increase in players in fund banking and the rise in cost of capital. (12:00) Sam and Vince explain their journey of joining Citizens Private Bank, focusing on safety, stability, and continuing their work in the sector. (18:00) Challenges faced by emerging managers, including capital call lines and banking needs. (22:12) The importance of a seamless digital experience. (28:16) Explanation of management company lines and their use by emerging managers. (31:00) Advice for emerging managers on managing financial challenges and understanding the economics of running a fund. (34:00) How technology and APIs are used to enhance banking services and integrate with third-party providers. (38:00) Importance of offering personalized banking experiences tailored to individual client needs. (40:00) Value-added services and why banks offer advisory support and strategic guidance. (45:10) The long-term commitment required to build a successful banking franchise in the venture ecosystem. I’d love to know what you took away from this conversation with Sam and Vince. Follow me @SamirKaji and give me your insights and questions with the hashtag #ventureunlocked. If you’d like to be considered as a guest or have someone you’d like to hear from (GP or LP), drop me a direct message on Twitter. Podcast Production support provided by Agent Bee This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit ventureunlocked.substack.com