Venture Debt is a risky way to earn a return (just as SVIB) – especially when the source of capital is customer deposits as opposed to long-term limited partner capital for example. Extending loans to Technology firms that aren’t generating cash, or in many cases that are not generating revenue is a risky bet. The fact that said companies have institutional backing is not a sufficient risk buffer in my view. The fact that SVIB over-invested deposits in long-term debt instruments is a separate issue. There are scores of firms that extend venture loans. Below we list a handful.

• Asset Management
• Financial Services
• Investing
• Technology