As the Canadian government and its big banks give reassurances that the impact of SVB's crash will be minimal some in the startup community are concerned that the incident will chill tech investment, with lenders playing it safe after this latest setback.
Last week s sudden collapse of Silicon Valley Bank could choke funding for Canada s technology start-ups and place them in the hands of domestic lenders who may be more selective in financing new. | March 13, 2023
Venture debt is handy for extending a company's runway, making it popular as businesses navigate a downturn that has triggered mass layoffs, spending cuts and falling valuations across the sector.
TORONTO When investor exuberance in tech stocks faded as COVID-19 spending habits petered out and recession predictions grew, the head of the Silicon Valley Bank's Canadian arm knew what would keep startups going: venture debt.