By Amelia Isaacs on Wednesday 22 June 2022
The new investment is part of a broader £15bn lending fund for SMEs across the UK.
HSBC UK is launching a new ‘Growth Lending’ fund for high-growth tech businesses in the UK following the government’s calls for more investment in the sector last week.
The £250m fund is designed to support “well-equitised, high growth, loss-making scale-ups” that are earlier on in their growth journey.
Businesses will get access to both funding and the bank’s international expertise to help reach their global ambitions.
The fund also includes a commitment to improving the tech ecosystem to ensure the UK remains one of the best places to start and run technology businesses, the bank said.
“The Government’s vision for harnessing digital transformation and making the UK the best place to start and run an ambitious digital technology business is aligned with our mission to support ambitious tech businesses,” HSBC UK head of tech Roland Emmans said.
“Growth Lending is for businesses who want to become global tech players by working with a global bank.
“This is an ideal option for high-growth tech scale-ups, who are supported by a strong equity backing, have a proven sales track record, and a clear path to profitability.”
The new fund will give access to up to £15m in financing to support scale-ups, targeting IP and technology-rich businesses in cloud or software, from healthtech to edtech, fintech or beyond.
As part of its credit underwriting process, HSBC UK is working with specialist IP services firm Inngot to identify and value prospects’ IP and intangible assets.
“IP-rich firms have the greatest potential for innovation and growth, but their value derives mostly from often invisible intangible assets; this has led historically to a widening funding gap,” Inngot CEO Martin Brasswell said.
“HSBC UK is working to close this gap by deepening its knowledge of IP and intangible assets and how they drive company value.”
The growth lending fund is part of a broader £15bn lending fund to support SMBs across the UK and adds to the bank’s £500m fund for SME tech businesses.