Silicon Valley Bank was a mid-sized regional bank primarily focused on serving entrepreneurial companies and the venture capital firms that support them. Venture banks will be slow to fill the void. While Silicon Valley Bank was the 600-pound gorilla, there are hundreds of other potential sources of smart capital out there. The good news is that in recent years an entire industry of venture debt funding sources has emerged. Which raises the question: where will cash-hungry startups find venture debt financing now? Who to Turn to For Venture Debt Financing A less dilutive means of extending your cash runway, venture debt has helped countless entrepreneurs navigate potholes and overcome hurdles as they invest in product development, marketing, and sales growth on the way to profitable operations. Venture debt financing has long gone hand-in-glove with venture capital fundraising. ![]() Silicon Valley Bank was by far the largest provider of venture loans to the startup ecosystem, with more than $6.5 billion in loans to early- and mid-stage companies in 2022 out of $26.5 billion in total venture debt funding industrywide. One funding vehicle especially – venture debt financing – is receiving plenty of attention. Many of those accustomed to one-stop shopping for cash deposit accounts, cash management, business loans, lines of credit, and a host of other services are by necessity now doing top-to-bottom reviews of their banking and financial relationships. The collapse of Silicon Valley Bank has spurred venture capital-funded growth companies to take a harder look than ever at their cash flows, burn rates, and how much runway they have to profitability. Startups are seeking new sources of debt financing following the collapse of Silicon Valley’s biggest lender.
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