HSBC UK launches £250m fund for high growth tech businesses

HSBC UK has today launched an exciting new ‘Growth Lending’ offering for high growth tech businesses in the UK, following the UK Government’s call for additional investment in the sector last week.

The new £250m fund from HSBC UK will help support well-equitised, high growth, loss-making scale-ups earlier in their growth journey. It provides access to finance, as well as HSBC’s international expertise, it will help businesses achieve their global ambitions.

High growth tech scale-ups generally own few tangible assets, but are rich in intellectual property and intangible assets, so IP evaluation forms part of the credit decision process. Scale-ups also favour value creation over short term profits, and HSBC UK has evolved its debt offering to better support tech firms to innovate, thrive and grow in the UK and internationally.

The Growth Lending offer will support the Government’s new strategy, announced last week, which is focused on financing digital growth, to build a more inclusive, competitive and innovative digital economy in the UK. It also includes a commitment to improving the tech ecosystem to ensure that the UK remains one of the best places in the world to start and run a technology business.

Growth Lending allows access of up to £15m in financing to support scale-ups on their journey to the next level. Targeting IP and technology-rich businesses in cloud or software, healthtech or edtech, fintech or advanced manufacturing, or anything beyond, HSBC UK is ready to partner with tech businesses early in their lifecycle to support their growth.

Growth Lending sits alongside other funds including HSBC UK’s £500m fund for SME tech businesses, part of a broader £15bn lending fund to support small and medium-sized enterprises (SMEs) across the UK. The aim of the fund, which launched this month, is to support regional economies, employment opportunities and drive growth.

Roland Emmans, head of UK tech sector & growth Lending at HSBC UK, 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.”

As part of its credit underwriting process, HSBC UK is working with specialist IP services firm Inngot Ltd to use its online valuation tool Sollomon to quickly and easily identify and value prospects’ IP and intangible assets.

Martin Brassell, CEO at Inngot, added, “HSBC UK and Inngot have been working together on IP evaluation for some time, and this represents another chapter in our journey together.

“HSBC UK recognises that the future of banking lies in delivering innovative finance solutions for innovative companies. 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.”