Case Analysis - Xedia and Silicon Valley Bank - Feona Castro fic213 .docx

FINC-GB.3361.70 Individual Case Analysis
Feona Castro (fic213)
1. Should SVB make the loan?
Upon taking into consideration Xedia’s historical performance (both operationally and
financially), management capacity, growth potential, and competitive advantage within the
context of its industry and within the criteria set by Silicon Valley Bank (SVB), I would
recommend for SVB to make the loan, but contingent to the company’s agreement to certain
term provisions and covenants, which shall be detailed under my response to Question # 2.
I conducted my initial credit analysis
using the framework 1 implemented by SVB,
which were (1) evaluating the growth
potential of Xedia; (2) industry trends and
competitive landscape; (3) assessing the
extent of interest that Venture Capital firms
had in providing follow-on financing to the
company; and (4) the intended use of
proceeds.
Xedia’s Potential for Growth.