International bank HSBC has launched a £250 million Growth Lending Fund aimed to help UK tech startups scale.

The fund is aimed specifically at investing in high-growth, loss-making companies that have already had investors taken equity in the company, have a proven sales track record, and a clear path to profitability.

Companies need to have a minimum of £30m of equity raised, revenues of over £10m and over 20% growth in the past two years. They also need projected profits within two to three years.

Qualifying tech companies will be able to apply for loans of up to £15m. In addition, they will access the bank’s international expertise to help them take the next steps towards profitability.

“Growth Lending is for businesses who want to become global tech players by working with a global bank,” said HSBC UK head of UK tech sector and growth lending Roland Emmans.

“This is an ideal option for high-growth tech scale-ups, who are supported by a strong equity backing, have a proven sales track record, and a clear path to profitability.”

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With the UK ranking as Europe’s top destination for tech investment, and the second globally after the US, this year, the Government is keen to increase investment in the country’s tech sector.

As part of its new Digital Strategy, it has called for more investment in the UK’s tech companies.

Emmans added: “The Government’s vision for harnessing digital transformation and making the UK the best place to start and run an ambitious digital technology business is aligned with our mission to support ambitious tech businesses.”

HSBC had previously committed to invest £500m in the UK’s tech sector in 2022, part of its £15bn lending programme for British SMEs.

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