Running a business
Nuada: Diversifying funding to support a fast-scaling climate tech company
- Running a business
- Article
- 5 minutes read
Nuada spoke to us about their growth goals, why they're looking to diversify their options and their aims for making a major difference in the carbon capture space.
- Nuada needed a venture debt financing partner to help accelerate their ambitions.
- We deliver banking services for the long term, as well as access to a team that operates within the climate tech space.
About Nuada: Making carbon capture tech efficient and affordable
Conor Hamill, Co-founder and Co-Chief Executive Officer, Nuada"Carbon capture is essential and not optional. For many of these industries, it's existential. The biggest challenge is that the incumbent solutions today are very expensive to deploy. This is where Nuada is redefining the space."
Nuada is a fast-growing group of passionate, driven founders and investors looking to address one of the biggest challenges facing our planet today - how to decarbonise our economy in an affordable way. What sets them apart is their ultra-efficient, plug-and-play carbon capture technology that allows for much faster, cost-effective deployment1 in sectors where decarbonisation has traditionally proved challenging.
Unlocking the right tools for climate tech growth
Nuada needed a banking partner that could provide a full range of products and services and understood the climate tech space. We came recommended for our expertise in both the startup landscape and the climate space.
Kevin Monaghan, Chief Financial Officer, Nuada"The reputation was matched by the experience. Very understanding, very competent, very knowledgeable about the industry and very knowledgeable about the specific challenges that startups face."
In Nuada's earliest stages, we helped identify the most suitable form of capital to help the company realise their ambitions. This began by securing a venture debt facility, which offered additional working capital that provided a surety and a sound financial footing. We also provide a full range of services, including foreign currency management tools, corporate card facilities and term deposits that are customised to Nuada's circumstances.
Kevin Monaghan, Chief Financial Officer, Nuada"Putting in place the correct capital structure for early stage businesses can be very overwhelming and particularly stressful if the best solution isn't readily apparent. [HSBC Innovation Banking were] very quickly able to provide a solution tailored to our needs, coupled with a very, very fast turnaround."
Building on venture debt to support global growth
Kevin Monaghan, Chief Financial Officer, Nuada"We believe at Nuada that the carbon capture challenge isn't just an engineering challenge, it is also a financial challenge. It's essential to unlock the capital necessary for startup businesses and fast growth companies like Nuada to scale."
One of the biggest challenges for any capital-intensive climate business is bridging the gap between early-stage venture capital funding and the later-stage funding2 that scale-up firms like Nuada need. We're working together to explore more options for diversifying capital, such as other forms of non-dilutive debt to complement existing investment and grant funding.
Conor Hamill, Co-founder and Co-Chief Executive Officer, Nuada"It's looking beyond [venture debt] and looking at the wider realms of the bank and the possibilities that it offers to open up innovative financing solutions to continue helping us scale this business."
Diversifying sources of capital will be crucial as Nuada continue to scale and take on the carbon capture challenges of the coming years. They've already passed key milestones by deploying solutions on the ground; now they're focused on advancing to their next scale-up project and developing a first-of-a-kind commercial-scale facility. We'll continue providing long-term commitment and support to the company as they look for new funding sources and enter markets on a global scale.
Any opinions expressed are merely opinions and not facts. All information in this document is for general informational purposes and not to be construed as professional advice or to create a professional relationship and the information is not intended as a substitute for professional advice. Nothing in this document takes into account your company’s individual circumstances. HSBC Innovation Banking does not make any representations or warranties with respect to the accuracy, applicability, fitness or completeness of this document and the material may not reflect the most current legal or regulatory developments. HSBC Innovation Banking disclaims all liability in respect to actions taken or not taken based on any or all of the contents in this document to the fullest extent permitted by law. Nothing relating to this material should be construed as a solicitation or offer, or recommendation, to acquire or dispose of any investment or to engage in any other transaction.
