VC portfolio companies don't need loans; that's what they have all that cash for. It's also why SVB had everything in treasuries because they couldn't loan it out.
Founders used SVB because of hearing things like how regular banks, if they see you have a failed startup in your history, might not give you a home loan. (And because it was trendy.)
Venture debt is a thing. I worked for a startup that had a loan through SVB ... so I don't think you're quite correct, though I don't know how common those loans were.
Founders used SVB because of hearing things like how regular banks, if they see you have a failed startup in your history, might not give you a home loan. (And because it was trendy.)