10/4/2023 0 Comments Svb venture debtWe look forward to a continued partnership with Richard and the rest of the Icelolly team. Richard Faulkner, Managing Director at Silicon Valley Bank’s UK Branch, said: “ We’ve enjoyed working with Icelolly and it has been great to be able to support them on this impressive journey of rapid growth and brand recognition. The partnership with Icelolly further supports SVB UK’s commitment and growing presence in the North of England by being a valued financial partner to the Northern innovation economy which is made up of a diverse range of innovative technology and life science businesses throughout the region.Ĭommenting on the financing, Icelolly CEO Richard Singer, said: “ Silicon Valley Bank has supported our growth plans and vision and we are pleased to announce this facility today to help make Icelolly the best-loved brand for UK holidaymakers.” Icelolly also expects to invest in its team with further hires following the creation of its first chief marketing officer role. The financing will enable Icellolly to significantly boost its brand awareness with consumers through various channels online and offline. The facility will be used to fuel further growth, including strategic investments in Icelolly’s sales and marketing activities. "The bar is higher in terms of underwriting.Silicon Valley Bank (SVB), the bank for innovative businesses, enterprises, and their investors, has announced it has provided Icelolly, the UK’s leading holiday comparison platform and award-winning travel brand with £2m in finance to support its future growth plans. High demand and depressed lending levels have allowed lenders like Runway to become more selective and make loans to higher-quality companies, Spreng said. These dynamics have empowered lenders to demand more favorable covenant packages and warrant coverage, in addition to higher interest rates, said David Spreng, founder and CEO of venture debt lender Runway Growth. As dealmaking and growth slow, startups increasingly fail these tests. For later-stage companies, lenders emphasize a path to profitability or cash flow break-even, when revenues match expenses. Lenders want confidence that startups are on track to receive future investment and that their investors remain committed to the company. "Since SVB's collapse, lenders have reported that they have not seen other banks stepping up to replace that specific function that made SVB so unique," said PitchBook analyst Kaidi Gao.ĭebt capital remains in high demand among startups, but it has been harder to secure during a slump in VC investment. First Citizens Bank, which purchased SVB in late March, said in May that it expects the value of the SVB loan book to fall 8% this year to around $61 billion. ![]() 2) Number of mentions calculated by analyzing proprietary internal call reports that. ![]() SaaS vertical defined using PitchBook’s methodology for industry verticals. Notes: 1) Deals analyzed excludes PE growth and corporate deals. Following its collapse, many lenders vowed to increase efforts to serve startups, but the fate of early-stage loans remains uncertain. Debt financing requests are on the rise as startups begin to hedge against a tougher equity market heading into 2023. SVB primarily operated in the early-stage market, sometimes lending to pre-revenue companies as it sought to deepen its relationships with investors. And many startups refinanced following SVB's collapse in March, which may have provided a bump for new loans. Business development companies, among the most active venture debt lenders, have yet to file their Q2 financial statements. Time will shed more light on the state of the opaque venture debt market as more deals from the first half of 2023 are collected in the next few quarters. That's compared to declines of 27% and 39% for the late stage and venture growth stage, respectively.Īcross all stages, startups closed $6.34 billion across 931 venture debt deals in the first half of 2023, compared to $20.07 billion across 1,513 deals in the same period last year. In the first six months of 2023, the number of loans for angel-backed and seed-stage companies fell 44% year-over-year, and early-stage loans fell 45%, according to the Q2 2023 PitchBook-NVCA Venture Monitor. The trend is a sign of lenders imposing higher standards and of startups with uncertain financial prospects failing to qualify for new loans. ![]() ![]() These young companies have been the hardest hit as loan volumes decline across the venture debt landscape. Early-stage venture debt deals have sharply decreased since the implosion of Silicon Valley Bank, which had catered to fledgling startups.
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