San Francisco has long been the center of innovation and technology in the United States. Many of the largest technology companies such as Google, Facebook and Apple are headquartered in the Bay Area. As a result, San Francisco has attracted many of the top investment banks who are eager to provide financial services and facilitate tech IPOs. In 2020, despite the challenges of the COVID-19 pandemic, the Bay Area remains a key market for major investment banks.
Morgan Stanley and Goldman Sachs lead in tech deals
Morgan Stanley and Goldman Sachs are the top investment banks in San Francisco in terms of deal volume and value. They have extensive experience advising Silicon Valley companies on IPOs, M&A transactions and other strategic priorities. For example, Morgan Stanley led the IPOs of tech giants like Uber, Lyft and Slack. Goldman Sachs also has a strong track record, having led IPOs for Spotify, Dropbox and MongoDB. Beyond the largest deals, Morgan Stanley and Goldman Sachs have built out strong technology franchises to serve companies of all sizes in the Bay Area.
Boutiques carve out niche advisory roles
In addition to the bulge bracket banks, many boutique investment banks have a significant presence in San Francisco. Firms like Qatalyst Partners, Frank Quattrone’s tech-focused boutique, have advised companies like LinkedIn, BigCommerce and Anaplan on M&A deals. Other notable boutiques include Centerview Partners, Moelis & Company and boutique divisions of larger banks like Evercore and Lazard. These firms pitch their independent advice and senior banker attention on Silicon Valley clients.
Full service banks rounding out the list
The remaining large investment banks all have Silicon Valley offices as well, including JPMorgan, Bank of America Merrill Lynch, Citigroup and Credit Suisse. While they may not lead as many marquee tech deals, these banks provide the full suite of financing services like debt issuance, derivatives and prime brokerage that round out the needs of Bay Area clients.
Up and comers looking for entry points
Given the opportunity in technology banking, newer entrants are still looking to build out their presence. Most notably, Silicon Valley Bank, the startup bank, has expanded into advisory services. Other banks like Jefferies and William Blair have been bulking up their technology groups to land mandates. While they have gained some traction, these players have a long path to truly challenge the market leaders.
In 2020, San Francisco remains the epicenter of technology banking with Morgan Stanley and Goldman Sachs leading the market. However boutiques and full service banks retain strong footholds as they provide complimentary services. As corporate activity rebounds post-pandemic, expect fierce competition between investment banks in the Bay Area.