venture debt

“But that creates an overhang on the next round because the new VCs coming in, They want their money to go into the company, not paying off a bank. So it actually makes the next round less attractive.”

“The asset as a, as an asset class, we can make fun of it all we want. It's actually performed pretty well. These guys have generated typically 18% as an industry.”

“If you look at SVB's loan portfolio, 70% are really these asset-backed loans, which are 56% of the portfolio is like, you know, pre-payments on, on LP commitments, and then 14% is private banking loans, which is loans against, you know, public securities that …”

“You can't use customer, customer deposits to do some CLO deal or to do like, you know, to back a PE play. These are all LP capital that goes towards that. This is the only sliver, as far as I know, where you take customer deposits to create very risky loans wr…”

“I believe that the data for all these models is, is skewed because it assumes again, an environment in which companies keep raising up rounds. And as soon as you get into a crisis in which that breaks, then the whole asset class breaks.”

“Moreover, I always try to talk founders out of taking venture debt, whether from SVB or elsewhere.”

“I've never seen venture debt work well to improve the quality of a business. Never. Never. It doesn't work. Only, only, only ever seen venture debt... That damaged companies And if you get the venture debt, you can never actually use it. So the venture debt in…”