HSBC launches VC investment strategy to tap into lucrative fintech pool

By Aisling Finn on Tuesday 3 August 2021

Digital Banking

The new strategy will see HSBC participate in Series A and B funding rounds of innovative firms across Europe and Asia.

HSBC launches VC investment strategy to tap into lucrative fintech pool
Image source: Joshua Lawrence/Unsplash

 

Big banks have long been eyeing up fintechs and HSBC has come up with a new way to get involved.

The bank has created a specialist venture capital arm specifically for the purpose of investing in companies “that will participate in the transformation of financial services.” 

HSBC’s new VC strategy will see it participate in Series A and B rounds of firms in either B2B software or financial services sectors across Europe and Asia.

By launching this new strategy, HSBC is hoping to open channels of communications between these young, innovative companies and asset managers, family offices, private banks and high-net-worth individuals.

“As part of our commitment to provide clients with exciting investment opportunities, this strategy will give them access to high growth sectors and parts of the world where economies are expanding fast such as the Greater Bay Area in China,” Joanna Munro, CEO of HSBC Alternatives, said.

“The team’s sector experience and investment rigour, coupled with our profile as one of the world’s largest banking and financial services organisations, is a major advantage in the eyes of both investee companies and investors.”

HSBC’s new team will be led by Remi Bourette, head of venture and growth investments at HSBC and Kara Byun, director of venture and growth investments. 

Both Bourette and Byun have extensive financial operations experience from across both Europe and Asia.

“We are interested in the tectonic changes of the industry, even more so when they relate to the role of finance in the economy and society in general,” Bourette added.

“We believe the transition to ESG-driven finance will lead to the reinvention of many product lines creating a powerful tailwind for sustainability-native companies. We also see wealth creation in Asia as an enduring trend that will benefit technology companies across wealth management, capital markets and insurance.”

In June 2021, HSBC announced that it was to combine all of its existing alternatives capabilities under one roof, HSBC Alternatives, which has a 150-strong team and combined assets under management of $53bn.

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