The Pros and Cons of Venture Debt for Startups

The Venture Debt Drought: Why Startups Are Looking Beyond Silicon Valley Banks

Startups in Silicon Valley are facing a liquidity crisis as traditional banks are no longer providing the funding they need. Following the collapse of Silicon Valley Bank, the uncontested leader in venture debt, volumes of venture debt have plummeted nearly 40%. Meanwhile, demand for venture debt financing has reached all-time highs, creating a gap in the market. This has forced startups to look beyond traditional banks for funding alternatives.