High Street Banks Lure Tech Firms Away From Silicon Valley Bank UK After HSBC Rescue Deal

High-end banks are quietly stepping up efforts to lure startups out of Britain's Silicon Valley bank, as the firm's beleaguered customers debate whether to keep their accounts open at the last minute following HSBC's bailout deal.

The Canary Wharf-based bank wrote yesterday assuring UK SVB clients that it has funded around £2bn in additional cash and is "ready to deploy additional funds and cash if needed".

All the tech companies and entrepreneurs who spoke to The Standard said they wanted to continue doing business with SVB UK in the near term after its US parent company collapsed, but some saw a clear uptick in looking for attractive options.

"The lesson is that all businesses need more than one or two top-notch bank accounts," said Seb Wallace, venture capitalist at Triple Point.

“Other large UK banks appear to have taken a more hands-on, startup-friendly approach over the past three days. We expect this to continue.”

A group of London-based organizations signed a petition over the weekend pledging to stay with SVB UK if it can be saved given its 'leading role' in supporting small businesses.

But some firms have expressed doubts that HSBC is a good fit for a startup-focused bank.

One SVB customer told The Standard: “We were with HSBC before and the reason we moved was because they had a bad and hostile relationship with SMEs.

"If you don't keep SVB at its best, we won't last long."

Russ Shaw, founder of Tech London Advocates, said: “Many people are satisfied with what HSBC has done and want to give them the benefit of the doubt.

"[But] big banking startups have tried opening accounts with them, and I've never seen HSBC like I've seen anyone else."

HSBC's new 'loan for growth' scheme launched in July last year to help UK tech companies grow was seen as a sign that the bank is gaining value from the UK tech sector.

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