Founders in Europe have led in building purpose-driven tech, which has attracted an increase in funding at the growth stage that are setting out to solve some of our hardest problems. There is strong momentum in areas such as sustainability and climate, with ground-breaking developments in foundational technologies such as Generative AI with potential applications across almost every industry sub vertical. The Carbon & Energy sector which encompasses ‘climate tech’, accounts for 27% of all capital invested in European tech in 2023, tripling its share of investment since 2021. However, startups in sectors such as AI, climate, healthcare, education and infrastructure typically take a lot of money to scale. As a result, investors will need to revise their playbook to back these capital-intensive long-term businesses. Investing in capital-intensive industries requires a comprehensive approach and patience that goes beyond 昀椀nancial analysis; you need deep sector expertise and a nuanced understanding of these speci昀椀c industries. While this may sound challenging, to create disruptive companies with the potential to change the world, we need institutions that can 昀椀nd creative, empathetic and long term solutions to 昀椀nance them. The economic challenges the venture landscape has weathered means entrepreneurs face a higher bar fundraising, se- curing talent and customers. Startups in Europe are 40% less likely than their US counterparts to secure VC funding after 昀椀ve years, even if year-on-year the volume of new startups in Europe outpaces the US. Europe- an founders are resilient, but they need help unlocking access to varied and scalable long-term capital, and this is where utilising a breadth of 昀椀nancing sources to build out the capital stack matters. Through our years of supporting and 昀椀nancing innovation business across every subsector, our expertise in helping companies scale and appetite to deploy capital means we are right there alongside the investors when looking to help founders and companies across all life stages reach their next milestone, extend runway, or gear up for an exit. Seizing these opportunities in 2024 is unpinned by investor capacity, upskilling and attracting world class talent, and maintaining a long-term view around risk and value creation. Simon Bumfrey Head of Relationship Banking, HSBC Innovation Banking UK If we want Europe to become the next tech superpower, investment is key and at HSBC Innovation Banking we look forward to playing our part in fuelling this critical sector. About HSBC Innovation Banking HSBC Innovation Banking provides commercial banking services, expertise and insights to the technology, life science and healthcare, private equity and venture capital industries. HSBC Innovation Banking UK is a subsidiary of HSBC Group, bene昀椀ting from its stability, strong credit rating and international reach to help fuel its growth. | 14