What it takes for new economy businesses to thrive

HSBC recognises the value which new economy business brings to the larger economy

The term "new economy" first surfaced in the nineties, used to describe the rise of high-growth industries which promised growth in a very short period of time. Enter "technology".

It was also the time when major tech startups- turned-conglomerates we know of today were founded. Success stories include Google, Amazon, Nvidia, among others.

These companies later went on to transform the way we would live, and at the same time, created a booming job market that continues to thrive even today.

"The new economy is fuelling our global economic growth, we're seeing a lot of the growth in ASEAN and here in Singapore," says Amanda Murphy, head of commercial banking, South and Southeast Asia, HSBC.

"It's important because it's impacting not just the overall productivity and the number of centres, but it's also increasing and improving the standard of living in many countries, in Asia in particular," she adds.

But all these companies would not have been successful if not for one thing funding.

Pitchbook data in July showed that venture capital funding globally had almost halved in the first six months of 2023. Investors backed about 3,000 deals over that period - down about a third from a year earlier.

Industry experts noted this could have been due to the rising interest rates and global instability, which made deal-making a lot more expensive.

While investors shied away, one bank has remained committed to supporting new economy companies, with a goal to help promising businesses find their footing wherever it is needed.

That bank is HSBC.

In June this year, the Londonbased lender launched HSBC Innovation Banking, which includes the former Silicon Valley Bank UK - acquired in March by HSBC UK for £1.