HSBC UK this morning launched a fresh £250m growth lending fund for high-growth tech businesses as it looks to meet a government call for investment into the sector last week.
The fresh fund will provide cash to high growth scale-ups at an “earlier in their growth journey”, HSBC said today, and look to spur the growth of the UK’s tech sector.
Roland Emmans, Head of UK Tech Sector & Growth Lending at HSBC UK, said the bank was looking to “support ambitious tech businesses”.
“Growth Lending is for businesses who want to become global tech players by working with a global bank,” he said.
“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.”
Growth Lending allows access of up to £15m in financing to support scale-ups as they grow, and the bank said it would now be scoping out IP and technology-rich businesses in cloud or software, healthtech, edtech, fintech and advanced manufacturing.
The Growth Lending offer will support the Government’s new strategy unveiled last week at London Tech Week, which is focused on financing digital growth.
Concerns have grown that a funding gap for growth stage firms is choking off potential growth in the UK’s tech sector.
Ministers last week unveiled a swathe of measures in the updated digital strategy to try and tempt more investment into the space, including calling on institutional investors like pension funds to invest more in long-term growth opportunities.