SVB’s Loans Underpinned Venture Capital Boom That’s Now Busting
- The bank provided capital call lines of credit, partner loans
- Venture market may face ‘long delayed reset’ from bank demise
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Silicon Valley Bank was known as the bank of startups. But it was just as much the bank of venture capital funds.
SVB had long been an innovator in lending to wealthy tech investors during its four-decade run. It offered two products — capital call lines of credit and partner lending — that, when combined with record-low interest rates and relentless demand for high-growth investments, helped create a money machine that fueled the Silicon Valley economy and beyond.