the long term fallout was never going to come from only getting 90 cents on the dollar vs 100% it’s the fact that the lender most willing to work with non trad

the long term fallout was never going to come from only getting 90 cents on the dollar vs 100% it’s the fact that the lender most willing to work with non traditional borrowers eg tech startups is now gone, and there’s no bank or lender that will replace them. if anything this will mean lending standards will tighten, and it will be very difficult for any customer with a SVB credit line to find another bank willing to lend to them on the same terms. this is also coming at a time when more startups relied on debt to fund their companies because the equity raising environment is so tough, so now many founders might be forced to attempt to raise equity in a tech bear market on very bad terms if they can at all