Earlier this week, venture investors and startups ran from Silicon Valley Bank, a financial institution that started the week solvent and closed it being shut down by regulators. While its failure affects the accounts of startups and venture investors that banked with it, SVB’s demise also has an impact on another service startups frequently used the bank for: venture debt.
SVB has long been thought of as a venture debt leader, and for many the bank’s name is synonymous with venture lending itself. So how could its collapse affect the increasingly hot venture debt market? It depends on who you ask.