The Uncertain Future of Venture Lending and U.S. Banks
The collapse of Silicon Valley Bank (SVB) has left the $32 billion venture-debt industry in uncertainty, as SVB was a pioneer in the field and a critical source of alternative financing for startups. Last year, SVB had $6.7 billion outstanding in venture loans. The demise of SVB raises questions about the future of venture lending and whether funding will become more difficult for startups.