Unlocking the Potential
Key Takeaways
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Meet the Speakers
To Be the Next Silicon Valley, More Progress is Needed
SVB UK + HSBC = HSBC Innovation Banking
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Watch the Fireside Chat
Additional Resources
UK's Innovation Economy Has Made Tremendous Progress
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The Rt Hon Jeremy Hunt MP, Chancellor of the Exchequer, UK Government
Erin Platts, CEO, HSBC Innovation Banking UK
The Rt Hon Chloe Smith MP, Previous/Interim Secretary of State for Science, Innovation and Technology, UK Government
Featuring:
Sponsored by:
Ian Stuart, CEO, HSBC UK
Fuelling UK Entrepreneurship
HSBC Sees Enormous Opportunities
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HSBC Innovation Banking is Enabling the UK's Innovation Economy
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Carolyn Dawson OBE, CEO, Founders Forum Group
Introduction:
Moderated by:
Key Takeaway
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Investment. Talent. Recognition.
"In recent years, we've seen tremendous investment flowing into the tech sector."
-The Rt Hon Chloe Smith MP, Previous/Interim Secretary of State for Science, Innovation and Technology, UK Government
The following results make the case for this progress:
Managing Director, Fifosys
Mitesh Patel
Progress in driving the UK's innovation economy includes:
Boosting government support for the innovation economy
Improving collaboration between the public and private sectors
Creating and scaling global category leaders
Increasing access to capital
This progress has led to investment flowing into the UK's innovation economy—in particular, the tech sector—and increasing recognition of the UK as one of the world's foremost innovation economies.
3rd Largest Tech Hub
In 2022, the UK became the world's third largest tech hub after the US and China.
24 Billion Pounds Invested
In 2022, 24 billion pounds were invested in UK tech companies, more than the investments in France and Germany combined.
London #1 in the World
London was ranked by Smart Centres Index as #1 in the world for developing and deploying new technology, ahead of New York City and San Francisco.
Invested in UK tech companies last year, more than in France & Germany combined
£24B
London's global ranking by Smart Centres Index for developing and deploying new tech
#1
"If I wind back the clock a decade and a half ago, where we were then versus where we are now is almost unrecognisable, on every facet of the innovation economy."
UK leaders envision the country as next Silicon Valley.
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Needed: scale-up capital and changes in regulation and mindset
"I think if people in the UK were a bit less modest about the amazing things that are happening and tell their story a little bit more, that would inspire more young people to come forward [to start innovative businesses] and really tap into their potential."
-The Right Hon Jeremy Hunt MP, Chancellor of the Exchequer, UK Government
Many elements exist to make this vision a reality, including the UK's extraordinary higher education sector, the superb financial services industry, and the talented, ambitious people and companies in the UK's tech community. But further progress is needed along multiple dimensions.
Scale-up Capital
'Over the last 10 years, the UK has become brilliant for startup capital, which never used to be the case,' Hunt said. 'We still need to do better when it comes to scale-up capital, when you're trying to grow a company from being worth £20 million to £500 million.'
Regulation
A change in regulation is needed to unlock some portion of the trillions of pounds in pension industry assets to provide more capital that can be invested in the innovation economy.
-The Rt Hon Jeremy Hunt MP, Chancellor of the Exchequer, UK Government
"We've been saying, since the Prime Minister and I came into office in the autumn, that we want the UK to be the world's next Silicon Valley."
What is needed to reach the UK's potential as an innovation economy
The Right Hon Jeremy Hunt MP, Chancellor of the Exchequer, UK Government
In March 2023, HSBC acquired SVB UK to create an unparalleled offering, to serve the UK’s innovation economy as a trusted financial partner.
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Reintroducing innovation banking to the UK
"We're excited to now see what they can achieve under their new brand [HSBC Innovation Banking], driving growth to help make the UK a leading innovation superpower."
-Carolyn Dawson OBE, CEO, Founders Forum Group
The UK government made no secret of its support for this acquisition in that it safeguarded jobs and assets and was important to the UK's tech sector and innovation economy, as well as the economy as a whole. Erin Platts, CEO of HSBC Innovation Banking UK, said that the formation of HSBC Innovation Banking represents a reintroduction of what innovation banking means to the UK and its clients. The concept and value of HSBC Innovation Banking resonates from early-stage innovation businesses to late-stage public and private companies, and within the VC and PE communities, as well as globally.
-Erin Platts, CEO, HSBC Innovation Banking UK
"We're creating this platform to bring the best of the old focus of SVB UK, strictly on the innovation economy, but now powered with the amazing global platform and reach that HSBC brings."
This acquisition combines:
The long-standing relationships and connection of the SVB UK team
The unique innovation expertise of the SVB UK team
Introduction to HSBC Innovation Banking
The power and global reach of the HSBC platform
Erin Platts declared, 'HSBC Innovation Banking is focused on all life stages and all sub-sectors of innovation.' This means helping companies be successful at every stage of their journey; helping provide access to growth capital for an AI business, a life sciences company, or a fintech. HSBC Innovation Banking will serve as a convener and as the voice of the ecosystem.
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Supporting innovation at all stages of the lifecycle by minimising friction
"We're really excited about supporting businesses with the global platform that HSBC brings, with the unique types of financing that the old SVB UK business did—from very early-stage companies through pre- and post-IPO."
HSBC Innovation Banking will focus on providing capital to start and scale businesses and to help businesses expand globally. In helping companies grow, HSBC is working to decrease friction and improve speed.
Discussing HSBC Innovation Banking
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Acquisition of SVB UK helps HSBC dramatically accelerate its plans, products, reach
When asked about HSBC's reaction to entering into a relationship with SVB UK on extremely short and urgent timing, Ian Stuart, CEO of HSBC UK, said that this relationship 'opens up a world of opportunity' and 'accelerates our plans quite considerably'.
Protect the acquisition
HSBC is highly focused on 'protecting what we bought', and then taking the acquisition forward on a much wider base. Protecting what HSBC bought means supporting seed funding all the way through to IPO. An important first step is migrating the infrastructure from SVB UK's previous US system to a UK system.
Add Key Elements of HSBC to What Was Previously SVB UK
This means combining all of the key elements of the HSBC infrastructure—the products, the global outreach—with SVB UKs industry expertise and team to create a valuable, compelling offering.
Mr. Stuart laid out HSBC's plans and priorities moving forward:
- Ian Stuart, CEO, HSBC UK
"I think we end up with a very, very strong business bank to support the innovation economy."
Build the Horizontal
With the combination of SVB UK and HSBC into HSBC Innovation Banking, there are a world of opportunities for customers and investors, with new offerings and services to build and expand innovation businesses.
Ian Stuart CEO, HSBC UK
How HSBC Plans to Pursue Opportunities
Erin Platts
CEO, HSBC Innovation Banking UK
Erin Platts is the CEO of HSBC Innovation Banking UK and is responsible for leading, developing and scaling the Bank’s business across the EMEA region.
Ian Stuart
CEO, HSBC UK
Ian Stuart was appointed CEO of HSBC UK Bank plc, with effect from April 2017, and is a member of HSBC Holdings plc’s Group Executive Committee.
Jeremy Hunt MP
Chancellor of the Exchequer, UK Government
The Rt Hon Jeremy Hunt is the Conservative MP for South West Surrey, and has been an MP continuously since 5 May 2005. He currently holds the Government post of Chancellor of the Exchequer.
The Rt Hon Chloe Smith MP
Previous/Interim Secretary of State for Science, Innovation and Technology, UK Government
The Rt Hon Chloe Smith is the Conservative MP for Norwich North and has been an MP continuously since 23 July 2009. She currently holds the Government post of Secretary of State for Science, Innovation and Technology.
Speakers
23 July 2009. She currently holds the Government post of Secretary of State for Science, Innovation and Technology.
currently holds the Government post of Chancellor of the Exchequer.
Watch Fireside Chat
After a record year of investment into European start-ups in 2021, VCs have taken a steadier approach in 2022 with a slowdown in funding and economic growth. Countries around the world are eager to attract tech talent, and as economic conditions worsen, are investors becoming even more cautious? Early-stage and pre-IPO funding remains critical for innovation and growth, so as valuations are pulled back how will this impact young businesses in need of funding to scale? Zthe barriers keeping investment from flowing into tech high-risk, high-reward companies? How do we close the gaps remaining in domestic investment in venture capital? Technology investment, is it ambitious or cautious?
Fireside Chat
Watch the WEbinar
Resources
Understanding the powerful relationship at the heart of HSBC Innovation Banking.
HSBC Innovation Banking
Video
Watch Now
Listen to our CEO, Erin Platts, as she discusses why the UK is such an important innovation hub.
Silicon Valley Bank’s Collapse Had a British Silver Lining
Listen Now
Watch to find out more about why HSBC Innovation Banking will help take the UK innovation ecosystem global.
PODCAST
Key messages around the future of HSBC Innovation Banking.
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