1) The overheard issue is something they can fix, they simply don't have any incentives to. Limited partners will have to crack down before we see any change.
2) Are there really many banks ready to fund a technology startup's series A? Even if its a business model with a high chance of a 5x return?
Banks as they exist today are a non option for most business financing. This is sad, and a big change from the peak of us civilization (18xx to maybe 1969)
Specialist banks like svb and square can use debt to let you stretch an angel round (equipment financing, maybe invoices on enterprise sales, maybe an a to b bridge loan) but are not a replacement for equity risk capital in seed or series a.
2) Are there really many banks ready to fund a technology startup's series A? Even if its a business model with a high chance of a 5x return?