I can't speak to the reasoning, but that's exactly the impact. I was at a start-up that needed bridge financing to pay off some debt; we had a customer placing orders and we were literally months from being insanely profitable. It was late 2008 - early 09, in the depths of the financial crisis. No bank would touch us, and VC's wanted a minimum 2x return on their investment. We ultimately ended up having to sell the company.