Silicon Valley Bank’s Demise Tightens Spigot On $30 Billion Of Venture Lending

Startups borrowed so they didn’t have to give up equity. After the collapse of market leader SVB, they should expect higher rates and fewer deals in the near future.

In 2017, when David Rabie first launched Tovala, which pairs a smart oven with a food-delivery service, the idea seemed a little crazy. Then came the pandemic and the idea took off. He’s raised around $100 million for the Chicago-based business, and also borrowed a few million dollars in venture debt from Silicon Valley Bank as an alternative to selling pieces of the company. That allowed him to expand Tovala, which now employs 350 and has three food facilities in Illinois and Utah.