November 8, 2007

David Scranton, co-chair of Stradley Ronon's Banking and Financial Services Practice Group, was quoted in this article regarding the difficulty of finding funding for local startup banks.

David Scranton, a partner at Stradley Ronon Stevens & Young who represents banks, said there are ways to deal with the current climate. Scranton said Sofronoff's strategy of raising a larger chunk of money from organizers or board members is key.

Scranton said there are also some new funds specializing in investing in banks. But he said the most common approach is what has been employed - lowering goals; the only exceptions are banks with niche customer bases. "Unless you have something like that, a startup will have to raise money on the street," he said, "because the most significant investors don't want to invest in startups because they're too small.”