The Collapse of Silicon Valley Bank and Entrepreneurial Finance

The collapse of Silicon Valley Bank (SVB) has raised concerns about the financing ecosystem for startups. SVB played a crucial role in providing funding and financial services tailored to the needs of early-stage high-growth companies. It offered more than just banking services, including venture debt and personal financing for founders. The question now arises whether another institution specializing in this industry needs to be replaced or if it would create a new systemic risk. While some argue for a diversified banking model to provide stability, others believe that venture debt and personal financing for founders could be offered by other entities outside of traditional banks.