|
Briefing
|
- Debt as alternative source – More U.S. startups are borrowing loans as source for capital due to less available venture funding and lower interest rates
- Waning investor appetite – Fewer startups got funded in 2016 amid waning investor appetite, compared to record $79 billion in venture investment to startups in 2015
- Spike in loan volume in 2016 – Silicon Valley Bank's loan volume to startups rose 19% during past year to $1.1 billion for quarter ending September 30, while other lenders such as Wellington Financial, Hercules Capital, TriplePoint, and Western Technology Investment also saw increases in loan volume in 2016 compared to 2015
- Debt rise in 2008 – Similar event happened in 2008 when fewer funding also caused rise in debt among startups
- 2017 forecast – Trend to continue in 2017 as more mature companies seek alternatives to venture investment and going public
|
