SVB charges premium on equity and on warrants to offset fluctuation to debt payment. SVB is one of the most profiting banks for last year. Random Points Equity is something to be put into a company but doesn't get out of it. The founders don t want to give up part of the company to VC for raising capital, but still are willing to do so by going through, say, angels. The founders are not willing to give up any part of the company at all.
Capital is raised through close acquaintance.
But this also means the company has little capital. This is called subordinate debt. Now, the landscape has changed.