HSBC’s push into startup banking in Asia is gathering pace, adding competition for venture lenders in a market where funding has tightened and founders are leaning more on non-dilutive capital.
The bank launched “HSBC Innovation Banking” in Singapore, earmarking a $1.5 billion pool to finance high-growth companies and their backers, alongside sector specialists and credit structures tailored to venture-backed firms.
The rollout coincides with the Singapore Week of Innovation and Technology (SWITCH), underscoring the city-state’s bid to anchor more late-stage capital and specialist banking for tech companies, according to an announcement.
HSBC said the Singapore launch is its third Asia-Pacific expansion this year, extending a network that already covers the US, UK, Australia, New Zealand, Israel, continental Europe, India, Hong Kong and mainland China.
The innovation unit, formed in 2023 after HSBC hired teams and capabilities following Silicon Valley Bank’s collapse, has grown its client base by nearly 60% and now counts more than 900 bankers, according to the bank and prior disclosures.
The Singapore proposition couples venture-style relationship coverage with a dedicated credit platform.
HSBC appointed Neil Falconer as Head of Innovation Banking in Singapore and created a Credit Solutions team led by Shaun Sakhrani, who also oversees platform lending in Asia.
Offerings span venture debt and structured facilities aimed at companies scaling between equity rounds, an area that has seen stronger demand amid slower IPO and M&A exits.
The move plays to Singapore’s concentration of founders, funds and corporate buyers, and reflects global banks’ renewed appetite to serve “cash-burning” innovators with deposit, treasury and lending packages, while using balance-sheet strength to win mandates from venture investors.
HSBC’s innovation arm reported faster growth in clients, deposits and loan commitments this year, signalling rising adoption of bank financing alongside equity.
With more than 4,000 startups and an active accelerator and investor base, Singapore has sought to position itself as a regional scale-up hub.