Updated March 11th, 2024 at 18:59 IST

HSBC plans to hire 50 bankers for startup, venture lending

Institutions like HSBC and JPMorgan are proactively expanding their teams to accommodate startups, aiming to foster long-term relationships that encompass IPOs.

Reported by: Business Desk
HSBC building | Image:HSBC
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HSBC is set to bolster its US commercial bank with the addition of nearly 50 bankers dedicated to lending to startup companies, primarily within the technology and healthcare sectors, as per a senior executive's statement.

Following the recruitment of approximately 40 professionals from Silicon Valley Bank after its closure last year, the London-based bank has fortified its innovation banking division, which currently comprises around 60 employees. This division is specifically tailored to cater to the needs of early- and mid-stage companies.

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Wyatt Crowell, head of commercial banking at HSBC, remarked in an interview with Reuters, "There's this void in the market and we're jumping into it." He expressed satisfaction with the division's performance, highlighting both the volume and success rate of deals.

Traditionally, startup companies encounter challenges in securing financing from major banks until they achieve substantial growth and stability. Institutions like HSBC and JPMorgan are proactively expanding their teams to accommodate startups, aiming to foster long-term relationships that encompass initial public offerings, international expansion, strategic deals, and wealth management.

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HSBC's venture lending business has already attracted around 250 companies as clients, closing 35 lending deals and securing another 30 term sheets, with an average deal size of $15 million, according to Crowell.

"I believe we've got traction in the market and that we're kind of punching above our weight relative to the scale of this team," Crowell stated, emphasizing the bank's intention to expand its venture lending initiative globally, driving the next phase of investment.

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(With Reuters inputs)
 

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Published March 11th, 2024 at 18:59 IST