Venture Capital: HSBC Readies $1B Warchest For Funding ClimateTech Startups
The HSBC fund will focus on early-stage startups in the sector.
HSBC (LON: HSBA) has made a significant commitment to the fight against climate change by pledging to provide $1 billion in financing to early-stage climate tech startups worldwide. This initiative aims to accelerate the development of innovative solutions in areas such as electric vehicle charging, battery storage, sustainable agriculture, and carbon removal technologies.
HSBC’s CEO of Global Commercial Banking, Barry O’Byrne, emphasized the importance of finance in supporting these startups, highlighting HSBC’s global reach and expertise in climate tech.
This funding comes at a crucial time, as recent data revealed a 40% drop in venture capital funding for climate-oriented startups in the first half of 2023. HSBC’s inclusive approach aims to support high-potential climate tech entities globally, recognizing the universal importance of climate solutions. (CROWDFUND INSIDER)
Thh global bank has also committed to investing $100 million in Breakthrough Energy Catalyst, a separate platform that supports and finances companies utilizing emerging technologies to shift towards cleaner energy sources.
This funding declaration comes after HSBC’s recent introduction of HSBC Innovation Banking, a fresh division concentrating on providing banking services to startups, investors, and the broader tech sector.
Furthermore, HSBC has initiated a novel climate-tech venture capital strategy, with the goal of investing in early-stage enterprises dedicated to achieving a transition to net-zero emissions.
“HSBC, equipped with its global footprint, profound climate tech acumen, and the freshly minted Innovation Banking framework, is uniquely positioned to provide unparalleled backing to these trailblazing companies,” added O’Byrne.
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