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

Play It Smart

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.