(Reuters) – HSBC said on Thursday it has expanded venture debt offering to early-stage startups through its U.S. innovation banking division.
London-based HSBC has been catering to late-stage and mature firms since 2019.
Debt has become an increasingly popular option for startups looking for cash in a tough financing market. Last year, several late-stage startups suffered from a drop in valuations and a risk-off sentiment amid higher borrowing costs.
HSBC’s innovation banking unit, launched in June, consists of the UK arm of Silicon Valley Bank, and other newly formed teams in the United States, Israel and Hong Kong.
(Reporting by Manya Saini in Bengaluru and Saeed Azhar in New York; Editing by Shinjini Ganguli)
