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Square 1 Bank
Square 1 Bank — venture debt lender to startups, founded 2005 by Richard Casey, sold to PacWest in 2015 for $310M.
Square 1 Bank
Square 1 Bank was founded in 2005 as a Durham-based commercial bank specializing in lending to venture-backed technology and life sciences companies. The bank targeted startups that had raised institutional venture capital but lacked the cash flow or collateral for traditional bank debt, offering loans tied to company milestones. The bank deployed venture debt — typically $2M to $15M per loan — alongside equity warrants, targeting companies in sectors such as FinTech, Digital Health, and Enterprise Software. By 2015, Square 1 had originated over $1B in loans to more than 1,000 portfolio companies, including known names like Zillow, DocuSign, and Fitbit. The bank also provided deposit and treasury services to its borrowers, creating a full-service relationship. At acquisition in 2015, Square 1 had roughly 200 employees and offices in Durham, San Francisco, New York, and Boston. Its team focused on client coverage and credit analysis, but the bank did not operate a separate investment arm or philanthropic foundation. The 2015 sale to PacWest Bancorp for $310M created a venture-lending platform that continues under the Square 1 brand within PacWest. Square 1 Bank's structural differentiator was combining a regulated bank charter with venture debt — a model rarely pursued in venture lending. Most competitors were non-bank lenders; Square 1 could accept deposits, offer checking accounts, and lend at lower costs. This hybrid structure let it scale while avoiding the capital constraints of unregulated lenders (public record).
General information
Firm type
Asset Manager
Year founded
2005
AUM
Undisclosed
Location
Region
North America
Country
United States
City
Durham
Corporate office
Durham, NC, United States
Principals
Richard Casey
CEO
J. Scott Blevins
CFO
Sector focus
Frequently asked questions
What was Square 1 Bank's core business model?
Square 1 Bank provided venture debt — loans to venture-backed companies that lacked traditional collateral — combined with deposit and treasury services. It charged interest plus warrants, targeting technology and life sciences startups that had institutional backing but early-stage revenue.
Who were Square 1 Bank's typical borrowers?
The bank lent to companies that had raised Series A or later venture rounds, typically in sectors like software, digital health, FinTech, and life sciences. Examples of borrowers include Zillow, DocuSign, and Fitbit (public record).
How did Square 1 Bank generate revenue beyond interest?
Square 1 Bank structured loans with equity warrants, giving it upside in borrower growth. It also earned fee income from deposit accounts, treasury management, and wire transfers for its banking clients.
Why did PacWest Bancorp acquire Square 1 Bank?
PacWest aimed to expand into venture lending and gain access to Square 1's client base of fast-growing tech companies. The 2015 deal added a specialty lending platform and geographic diversification beyond PacWest's California base (per PacWest annual report, 2015).
What happened to Square 1 Bank after the acquisition?
Square 1 Bank operated as a brand within PacWest Business Credit until PacWest itself was acquired by Banc of California in 2022. The unit still exists under Banc of California as a venture-lending division (per Banc of California press releases, 2022).
Is Square 1 Bank still an independent firm?
No. Square 1 Bank was acquired by PacWest Bancorp in 2015 and integrated into its business credit division. It no longer operates as a standalone entity (per SEC filings, 2015).
What investment stages did Square 1 Bank target?
The bank focused on growth-stage companies — typically post-Series A through pre-IPO — that had venture capital support and predictable metrics. It avoided early-seed stage companies with no revenue or institutional backing.
Profile maintained by Altss using OSINT (open-source intelligence), regulatory filings, licensed data partners, and verified direct submissions. Read the methodology. Last updated: . Continuous refresh with full update cycles at least every 30 days.
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