TLDR:
- HSBC has launched New Zealand’s first bank-operated venture debt fund to support local start-ups in a rising interest rate climate.
- The fund aims to offer non-dilutive financing options to help businesses with growth and international expansion.
HSBC has introduced a venture debt fund in New Zealand to provide local start-ups with a non-dilutive financing option in the face of tightening venture capital landscape. The fund, which has already seen success in Australia, offers loans ranging from $10m to $50m and targets businesses in the later stages of growth. This initiative aims to complement traditional venture capital by providing additional financial support for companies close to profitability. The fund’s introduction comes at a crucial time for New Zealand’s tech ecosystem, offering a new funding avenue amidst economic challenges and a contraction in available venture capital.
