Written by Will Fraser-Allen, Chair of the Venture Capital Trust Association (VCTA)
HSBC’s acquisition of Silicon Valley Bank (SVB) will provide much needed reassurance to the UK tech sector and all affected businesses held within VCT portfolios regarding their ability to access deposits.
We welcome the strong response spearheaded by Jeremy Hunt, the UK government and Bank of England to ensure a swift solution was found. In the context of the Chancellor’s earlier commitments to look after the UK’s thriving venture capital sector, the urgent nature of this response highlights the vital role early-stage businesses play in the wider UK economy. The sale of SVB to HSBC, a major global financial player, further illustrates the vitality and growth prospects within the UK start-up ecosystem.
The Chancellor’s previous confirmation that the Venture Capital Trust scheme will be extended beyond 2025 adds to the government’s strong support for the sector, and following positive dialogue with the Treasury and other stakeholders, we look forward to bringing further clarity to those entrepreneurs relying on the scheme to fuel business growth.
