Multinational bank HSBC has launched a £250m fund to invest in “high growth, loss-making” tech scaleups in the UK.
The HSBC Growth Lending fund will provide bank loans to scaleups that have already exchanged equity in the company for funding from venture capital firms and angel investors.
The fund will provide access of up to £15m for scaleups in areas ranging from fintech, advanced manufacturing, software, edtech and healthtech.
HSBC will take into account intellectual property owned by a scaleup during the credit decision process.
“Growth Lending is for businesses who want to become global tech players by working with a global bank,” said Roland Emmans, head of UK tech sector and growth lending at HSBC UK. “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 launch of the Growth Lending fund comes alongside the high street bank’s £500m fund, announced earlier this month, to invest in UK tech SMEs.
This tech sector fund falls under a significantly larger £15bn lending fund for SMEs across the UK in sectors spanning beyond tech.
HSBC is working with IP services firm Inngot to provide credit underwriting services during the funding application process.
“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,” said Martin Brassell, CEO at Inngot. “HSBC UK is working to close this gap by deepening its knowledge of IP and intangible assets and how they drive company value.”