Square 1 Bank

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.

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).

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.

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).

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).

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).

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.