Play It Smart
Trailer
Bonus
Episode 27
Season 1
Don’t Dilute Your Ownership! The Debt vs Equity Debate Every Tech Founder Needs to Hear
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.