Silicon Valley misplaced its financial institution. Expect ‘zombie VCs’ and darkish occasions for startups.

The fall of Silicon Valley Bank may result in the rise of zombies.

The financial institution’s implosion exacerbates cracks that had already been forming in enterprise funding and that can linger for no less than two years, a dozen leaders within the venture-capital subject advised MarketWatch in a collection of interviews. This, they are saying, will result in darkish days for startups that want funding, a change within the relationship between venture-capital companies and founders, and an increase in so-called zombie VCs.

The…