HSBC Launches $1 Billion ASEAN Growth Fund Targeting New Economy Businesses & $150 Million Venture Debt for High-Growth Companies in Singapore Backed by Venture Capital or Private Equity Investors, Total of $1.15 Billion Debt & Fund Complements Existing $200 Million HSBC New Economy Fund Launched in 2021 to Support Early-Stage Startups in Singapore
31st March 2024 | Hong Kong
HSBC has launched a $1 billion ASEAN Growth Fund targeting new economy businesses and a $150 million Venture Debt for high-growth companies in Singapore backed by venture capital or private equity investors, with the total of $1.15 billion debt & fund to complement existing $200 million HSBC New Economy Fund launched in 2021 to support early-stage startups in Singapore. HSBC Venture Debt Offering – High-growth companies in Singapore that are backed by venture capital or private equity investors can now access HSBC’s Venture Debt offering which provides flexible funding arrangements to accelerate their growth. The new Venture Debt capability provides a longer term and flexible financing solution to companies, supporting a range of funding requirements such as capital expenditure, runway extension, or working capital for up to three years in tenor. Through HSBC Venture Debt, new economy clients can gain access to more specialised financing structures, including those involving equity warrant instruments. HSBC ASEAN Growth Fund – In addition, Singapore-based digital platform businesses supporting e-commerce in the region can now tap on the newly launched US$1 billion ASEAN Growth Fund to achieve economies of scale across multiple international markets, grow their asset portfolios, and advance along the corporate lifecycle. In 2023, HSBC launched a new $3 billion HSBC New Economy Fund to finance start-ups & tech-led businesses in Hong Kong & Mainland China, expanding lending & venture debt to climate tech, industrials, consumer, technology, healthcare & life sciences to support entrepreneurs & innovative companies. More info below:
“ HSBC Launches $1 Billion ASEAN Growth Fund Targeting New Economy Businesses & $150 Million Venture Debt for High-Growth Companies in Singapore Backed by Venture Capital or Private Equity Investors, Total of $1.15 Billion Debt & Fund Complements Existing $200 Million HSBC New Economy Fund Launched in 2021 to Support Early-Stage Startups in Singapore “
Priya Kini, Head of Commercial Banking, HSBC Singapore: “Singapore has a thriving ecosystem of start-ups, investors, and accelerators which HSBC is part of. A common pain point we hear from start-ups is finding the right financing partner that understands their needs and can support them throughout their growth trajectory – from access to knowledge to skills and funding to strategic partnerships and network for their global expansion. We know that profitability may not always reflect a company’s potential in its early stages. That is why we take a long-term view of potential growth by evaluating companies based on historical portfolio performance, key operating metrics, growth plans and customer acquisition strategies.”
Amanda Murphy, Head of Commercial Banking for South and Southeast Asia at HSBC: “Like so many other internationally minded businesses, we are excited about ASEAN’s booming digital economy. With a working population that is digitally native, increasing in size, and poised to consume more goods and services – especially on e-commerce – ASEAN has so much potential for growth. We are delighted to launch our first-of-its- kind ASEAN Growth Fund and work with digital companies as they expand in the region and beyond. HSBC has a proud history and strong heritage in ASEAN of supporting entrepreneurs and scaling up businesses. The introduction of our latest offerings allows us to better support new-economy companies in ASEAN, whether they are start-ups or scale-ups, as they expand across the region and advance along the corporate lifecycle.”
HSBC Launches $1 Billion ASEAN Growth Fund Targeting New Economy Businesses & $150 Million Venture Debt for High-Growth Companies in Singapore Backed by Venture Capital or Private Equity Investors, Total of $1.15 Billion Debt & Fund Complements Existing $200 Million HSBC New Economy Fund Launched in 2021 to Support Early-Stage Startups in Singapore
27th March 2024 – HSBC today announced the launch of a US$150 million Venture Debt offering in Singapore, and a US$1 billion ASEAN Growth Fund, targeting new economy businesses.
Venture Debt Offering – High-growth companies in Singapore that are backed by venture capital or private equity investors can now access HSBC’s Venture Debt offering which provides flexible funding arrangements to accelerate their growth. The new Venture Debt capability provides a longer term and flexible financing solution to companies, supporting a range of funding requirements such as capital expenditure, runway extension, or working capital for up to three years in tenor. Through HSBC Venture Debt, new economy clients can gain access to more specialised financing structures, including those involving equity warrant instruments.
ASEAN Growth Fund – In addition, Singapore-based digital platform businesses supporting e-commerce in the region can now tap on the newly launched US$1 billion ASEAN Growth Fund to achieve economies of scale across multiple international markets, grow their asset portfolios, and advance along the corporate lifecycle. Both the new Venture Debt and ASEAN Growth Fund complement the existing US$200 million New Economy Fund, which was launched in 2021 to support the working capital needs of early-stage start-ups in Singapore1, creating comprehensive financing solutions for new economy clients across different stages of growth.
Digital Economy
- Southeast Asia’s digital economy is among the world’s fastest-growing – worth US$218 billion as of 2023 and expected to reach US$600 billion by the end of this decade – with a compound annual growth rate of 16%.2
- Recognised as the most innovative economy in Asia3, Singapore offers unparalleled opportunities for new economy businesses. Its culture of innovation, strong intellectual property protection laws, and its status as an international financial centre, alongside strong government support through grants and tax incentives, have positioned Singapore as a regional technology hub. Singapore is now home to over 5,000 start-ups, 527 investors, and 247 incubators and accelerators.4
HSBC Singapore is committed to supporting the thriving startup ecosystem
- Besides extending innovative financing solutions to the companies, it is also critical to support the investors as they play a key role in providing funding from inception to growth-stage. Specifically, HSBC Singapore has set up a dedicated coverage team to better support investors’ transaction banking and funding needs. In addition, the Bank continues to support industry initiatives that help expand the network of new economy businesses as well as work with like-minded businesses such as Antler5 to connect them to opportunities through knowledge exchange and networking.
- Similarly, HSBC Singapore will continue to scale-up its digital transaction banking capabilities to support businesses’ regional expansion needs. A recent HSBC survey targeted at 600 businesses operating in Southeast Asia highlights that a majority (86%) of Singapore-based firms plan to expand into more ASEAN markets in 2024. Singapore businesses (46%) also plan to invest further into digitalisation of their operations as a lever for expansion.
HSBC is already at the forefront of driving digital trade transformation in ASEAN. Businesses in Singapore, including new economy clients, have access to a range of digital transaction banking solutions, enabling them to focus on business priorities and development in the region.
Key solutions offered to Singapore new economy businesses operating in multiple markets:
- HSBC SmartServe
A single digital platform that makes opening business accounts quicker and more seamless. Find out more: HSBC SmartServe - HSBC TradePay
A straight-through digital solution for trade loans, HSBC TradePay, enables businesses to concurrently draw funding and make near real-time supplier payments with just a payment instruction file. The solution vastly improves user experience with a simple and reliable digital process to manage their payments and working capital efficiently, and at the same time improving their cash flows and saving on loan interests. Find out more: HSBC TradePay - HSBC Omni Collect
A market-leading digital solution to help businesses remove the cost and complexity surrounding the set-up of their on-site digital payment infrastructure. It is a one-stop collections solution that allows brick-and-mortar stores, kiosks and e-Commerce sites to accept multiple popular payment types, across Asia with standardised reconciliation reports. Find out more: HSBC Omni Collect
About the ASEAN Growth Fund
The HSBC ASEAN Growth Fund is announced across six key ASEAN markets – Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam. The US$1 billion fund aims to provide funding to digital platform businesses including e-Commerce players as they scale-up and expand across ASEAN.
Methodology
HSBC commissioned an online survey of 600 businesses based in six ASEAN markets: Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam. Survey respondents were key decision-makers from companies with annual turnover of at least US$50 million who are already doing business in ASEAN. The survey ran from February 14 to February 27, 2024.
The Hongkong and Shanghai Banking Corporation Limited
The Hongkong and Shanghai Banking Corporation Limited is the founding member of the HSBC Group. HSBC serves customers worldwide from offices in 62 countries and territories. With assets of US$3,039bn at 31 December 2023, HSBC is one of the world’s largest banking and financial services organisations.
Notes:
- HSBC launches Fund to support high-growth tech companies – About HSBC | HSBC Singapore
- e-Conomy SEA 2023 | Bain & Company
- Global Innovation Index 2023 – Innovation in the face of uncertainty (wipo.int)
- Startup SG – The Singapore Startup Ecosystem
- HSBC collaborates with Antler to support the growth of the next generation of entrepreneurs and start-ups – About HSBC | HSBC Singapore
HSBC Launches $3 Billion HSBC New Economy Fund to Finance Start-Ups & Tech-Led Businesses in Hong Kong & Mainland China, Expands Lending & Venture Debt to Climate Tech, Industrials, Consumer, Technology, Healthcare & Life Sciences to Support Entrepreneurs & Innovative Companies
2nd June 2023 – HSBC has launched a new $3 billion HSBC New Economy Fund to finance start-ups & tech-led businesses in Hong Kong & Mainland China, expanding lending & venture debt to climate tech, industrials, consumer, technology, healthcare & life sciences to support entrepreneurs & innovative companies. HSBC: “HSBC announced today several new initiatives to strengthen its dedicated support to the innovation economy in Hong Kong and mainland China. It will upsize the Bank’s specialist lending scheme to start-ups and tech-led businesses to USD 3 billion. The Bank will also add its first venture debt capability in Asia, bolstering its suite of financing solutions in Hong Kong for early-stage, high-growth companies with venture capital backing. HSBC is committed to supporting entrepreneurs and innovative companies. Since 2019, HSBC has set up two dedicated debt financing schemes totalling USD1.8 billion to support technology and healthcare ventures in the Guangdong-Hong Kong-Macao Greater Bay Area. Driven by strong customer demand, the two existing financing schemes will be combined to form an upsized USD3 billion fund called the HSBC New Economy Fund (“the Fund”). The enlarged fund will now support start-ups and tech-led businesses in climate tech, industrials, and consumer sectors in Hong Kong and mainland China, while retaining its existing focus in technology, as well as healthcare and life sciences.” More info below.
“ HSBC Launches $3 Billion HSBC New Economy Fund to Finance Start-Ups & Tech-Led Businesses in Hong Kong & Mainland China, Expands Lending & Venture Debt to Climate Tech, Industrials, Consumer, Technology, Healthcare & Life Sciences to Support Entrepreneurs & Innovative Companies “
Frank Fang, HSBC General Manager and Head of Commercial Banking, Hong Kong & Macau: “Structural shifts driven by imperatives such as the transition to net zero, the fourth industrial revolution and Web 3.0 are redefining businesses, regardless of their industry and size. New economy companies are set to play a more pivotal role in stimulating economic growth. With ever growing links with mainland China, Hong Kong will continue to be the preferred gateway bridging global capital to China’s growth story. This is yet another demonstration of HSBC’s support for the innovation economy in Hong Kong and beyond. These enhanced capabilities, coupled with our unrivalled international network, will place the Bank in a strong position to support emerging entrepreneurs of today who will shape the business world of tomorrow.”
HSBC Launches $3 Billion HSBC New Economy Fund to Finance Start-Ups & Tech-Led Businesses in Hong Kong & Mainland China
31st May 2023 – HSBC announced today several new initiatives to strengthen its dedicated support to the innovation economy in Hong Kong and mainland China. It will upsize the Bank’s specialist lending scheme to start-ups and tech-led businesses to USD 3 billion. The Bank will also add its first venture debt capability in Asia, bolstering its suite of financing solutions in Hong Kong for early-stage, high-growth companies with venture capital backing. HSBC is committed to supporting entrepreneurs and innovative companies.
Since 2019, HSBC has set up two dedicated debt financing schemes totalling USD1.8 billion to support technology and healthcare ventures in the Guangdong-Hong Kong-Macao Greater Bay Area. Driven by strong customer demand, the two existing financing schemes will be combined to form an upsized USD3 billion fund called the HSBC New Economy Fund (“the Fund”). The enlarged fund will now support start-ups and tech-led businesses in climate tech, industrials, and consumer sectors in Hong Kong and mainland China, while retaining its existing focus in technology, as well as healthcare and life sciences
From Series A stage and beyond, HSBC will continue to offer working capital, capital expenditure facilities, treasury management, and corporate finance solutions to meet the needs of innovation economy companies at different stages of their lifecycle.
Under the Fund, the Bank is also introducing venture debt to provide early-stage businesses with bespoke debt financing solutions, with the capability to include equity warrant instruments within the lending structures.
Apart from financing solutions, HSBC is continuing to grow and invest in specialist support for the innovation economy ecosystem through dedicated client coverage teams, including private equity and venture capital funds and their portfolio companies. This is in addition to the offering of beyond banking solutions via digital platform HSBC Business Go. HSBC also supports the development of start-ups through partnerships with different industrial parties, with recent examples of sponsoring JUMPSTARTER 2023 Global Pitch competition organised by Alibaba Entrepreneur Fund, and the inaugural Hong Kong Innopreneur awards by The Federation of Hong Kong Industries.
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