HSBC eyes leading role in banking for VCs, startups after hiring wave

NEW YORK: HSBC Holding plc is seeking to become a leading bank for venture capital firms and startups globally after building a large team of technology and healthcare bankers in the United States, Hong Kong and Israel, a senior executive said.

The bank is already doing venture-type lending to startup companies in India and will also focus on Singapore, Michael Roberts, CEO HSBC USA and Americas, told Reuters.

HSBC is stepping up in the market when VC activity is slowing due to global market uncertainty in the wake of the Federal Reserve-led monetary tightening.

In the first quarter of 2023, global VC investment was well under $60 billion, down from a peak of over $200 billion in the first quarter of 2022, a KPMG report said.

“In many ways, this is the best time for us to establish this initiative, because we get to really grow with these companies as they continue to grow themselves,” said Roberts.

“We’re going to be able to cover from the smallest to the largest, and do so in a way that is more globally focused than anyone else.”

HSBC hired 42 bankers from Silicon Valley Bank, which collapsed in March, said Roberts. An HSBC team of 10 bankers which focused on late stage lending also joined the team of former SVB bankers.