NEW YORK--(BUSINESS WIRE)--HSBC today announced that it will allocate $100 million in lending for companies that are founded and led by women and minorities through HSBC Ventures, which provides capital to startups and early-stage businesses around the world.
“Venture growth financing is critical to furthering innovation for early-stage companies that need capital,” said Martin Richards, President of HSBC Ventures. “It’s critical to provide financial support to founders who are historically underrepresented, so that their creativity and ingenuity has a runway to grow, expand and lead to lasting, positive change.”
According to published reports, venture capital funding to women-led companies fell during the global pandemic. Data shows that the proportion of dollars to female-only founders declined to 2.3% in 2020 compared to 2.8% in 2019. From 2015 to 2020, only 2.4% of venture capital funding was allocated to Black and Latinx founders.*
Venture growth financing is a type of loan designed for early-stage companies with venture capital backing, which can help companies extend their funding runway to their next equity raise, be more agile with investments or acquisitions, and provide a safety net for unforeseen events. Customers of HSBC Ventures can leverage the full resources of the bank, which includes an unparalleled international footprint, a comprehensive set of commercial and investment banking products and decades of experience supporting early stage, growth stage, pre-IPO and public companies.
“The most innovative companies of our time have relied on venture growth financing, and we’re excited to support the next generation of founders and start-up leaders with unique perspectives from diverse backgrounds,” said Prasant Chunduru, Global Head of Venture Debt.
Earlier this month, HSBC Ventures announced that it would reserve $100 million in loan funding for clients who are developing climatetech solutions and supporting a net-zero global economy.
*Diversifying Startups and VC Power Corridors, TechCrunch, August 29, 2021.
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HSBC Holdings plc
HSBC Holdings plc, the parent company of HSBC, is headquartered in London. HSBC serves customers worldwide from offices in 64 countries and territories in its geographical regions: Europe, Asia, North America, Latin America, and Middle East and North Africa. With assets of US$2,976bn at 30 June 2021, HSBC is one of the world’s largest banking and financial services organisations.