HSBC UK has today launched an exciting new ‘Growth Lending’ offering for high growth tech businesses in the UK, following the UKGovernment’s call for additional investment in the sector last week.
The new £250 million 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 £15 million 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 £500 million fund for SME tech businesses, part of a broader £15 billion 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. 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.
“HSBC UK has a strong and growing technology sector franchise, and we are very excited to launch Growth Lending to help better serve our high growth scale up tech customers as the go-to bank for internationally focused, UK based tech firms.”
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. HSBC UK is working to close this gap by deepening its knowledge of IP and intangible assets and how they drive company value.”