Don’t Dilute Your Ownership! The Debt vs Equity Debate Every Tech Founder Needs to Hear


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Nov 28 2024 34 mins  

In this episode with Luc Arama, you’ll learn:

  • HSBC Innovation Banking’s acquisition of Silicon Valley Bank (SVB) and Luc’s feelings about it.
  • How companies manage a debt facility with SVB in both the UK and the US.
  • Why a founder should consider going down the debt route rather than the equity route.
  • At what stages does HSBC Innovation Banking lend to companies.
  • What terms HSBC Innovation Banking usually offer for someone who is raising money through both an equity round and a venture debt facility.
  • How HSBC Innovation Banking differentiates itself in the market against traditional banks, venture debt funds, and VC funds.
  • How it differentiates from revenue-based financing.
  • Why HSBC Innovation Banking helps so many software companies compared to e-commerce.
  • What the due diligence process is for HSBC Innovation Banking when it underwrites.
  • Examples of covenants being breached and what happens if they are breached.
  • What needs to happen for HSBC Innovation Banking to auction off a business.
  • How Luc sees the financing landscape evolving in the future.
  • How you can get in touch with Luc.