I don't know if Silicon Valley Bank is made up of former VCs, but they will lend to startups. If you have real assets to back the loan (here, the physical serv

I don't know if Silicon Valley Bank is made up of former VCs, but they will lend to startups. If you have real assets to back the loan (here, the physical servers they are buying), debt is a far better way to get money than equity. Sure, Facebook _could_ issue stock, but investors would expect a 20%+ return. Instead, Facebook issues some IOUs to a bank that expects a 10% return. The current investors don't get diluted and everyone goes home happy. Buying physical assets with equity usually unnecessarily dilutive. Save your stockholders; issue debt instead.