HSBC takes start-up page from Silicon Valley after buyout

June 12 (UPI) -- British bank HSBC said Monday it was rolling out a new offering for what it considers startups with a high-growth potential, borrowing from the expertise of the former British arm of failed Silicon Valley Bank.

"Sometimes, high-growth start-ups need a helping hand to capture global opportunities and our new proposition will enable them to navigate the challenges of growing across borders," HSBC said in launching its so-called innovation banking offer.

HSBC purchased the British subsidiary of Silicon Valley Bank less than 72 hours after the latter was shut down and placed into receivership in California. Greg Becker, the former CEO of Silicon Valley Bank, testified before the U.S. Senate to say that the failure of rival Silvergate Bank led to misconceptions that contributed to SVB's collapse.

"News reports and investors wrongly lumped SVB and Silvergate together. Rumors and misconceptions quickly spread online, culminating on March 9 with the first-ever social media bank run, leading to $42 billion being withdrawn from SVB in 10 hours," Becker said.

Silvergate was the likely victim of over-reliance on volatile, and somewhat untested, cryptocurrencies, while SVB was caught in something of a contagion of fear.

Taking a page from SVB, meanwhile, HSBC said it was taking a holistic approach to its catering to new, potential clients.

"We'll support a range of businesses from early-stage growth ones to late-stage public and private corporates, and connect them with our global capabilities, including investment banking, private banking and asset management services," it said.

While borrowing the strategy from a failed bank may seem risky, the move earned praise from U.K. Prime Minister Rishi Sunak, who met recently with U.S. President Joe Biden.

"HSBC Innovation Banking will help innovative businesses to unlock their potential, create more jobs and access new global opportunities -- supporting my priority to grow the UK economy and cement our position as a science and tech superpower," he said.