Silicon Valley Bank rescue
Following intervention from HSBC Bank and the Government to rescue SVB UK from the brink of collapse, legal director Oliver Flowers comments on a narrowly avoided blow to the UK tech sector, in an article for Investment Week.
SVB UK, which was profitable at the time of SVB’s collapse, is acclaimed for its support of life-science and tech sector businesses, particularly early stage high growth businesses.
Oliver Flowers’ comments have also featured on LinkedIn News, where he noted relief among tech business owners and reflected on next steps for HSBC.
‘Unlike many modern digital banks such as Wise and Revolut, HSBC is not recognised as a ‘go-to’ bank for founders of start-up businesses, for the same reason that start-ups do not look to many other high street banks as their first choice. These big banks have not traditionally provided financial products that might be suitable to start-ups, which have limited means and need to act fast and have flexibility in the deployment of funds. It will be interesting to follow how HSBC integrates better into this market, and how it adapts and evolves its service lines and products to meet the needs and demands of this largely new customer base.’
At BDB Pitmans, we recognise the challenges for early stage businesses and how critical it is that they have access to appropriate advice to support their growth and development. We advise founders on everything from business structures and raising finance, to SAAS and PAAS agreements, as well as vesting arrangements, shareholders’ agreements, share option agreements, contracts with suppliers and the protection of intellectual property rights. Visit our website for further commercial advice.