VCs' portfolio companies often raise debt. This is called venture debt and the lenders are banks like Silicon Valley Bank. VCs tend to have a love/hate relatio

VCs' portfolio companies often raise debt. This is called venture debt and the lenders are banks like Silicon Valley Bank. VCs tend to have a love/hate relationship with venture debt. On the one hand, it means they suffer less dilution as the company grows; on the other hand, it means their investment gets riskier just at the point where they are finally de-risking the company.