Hong Kong start-up ecosystem funneled with HK$4.5 billion

It's sure to boost innovation and entrepreneurship.

It has been noted that Hong Kong’s start-up ecosystem has received a HK$4.5 billion boost, with a multi-pronged commitment to foster innovation and entrepreneurship.

According to a story from HKTDC, in his 2016 Policy Address announced in January, Hong Kong Chief Executive CY Leung unveiled a HK$2 billion Innovation & Technology Venture Fund.

The matching fund allows the government to co-invest in local start-ups with private venture capital funds. A separate HK$500 million fund, meanwhile, has been earmarked to finance projects that use innovation and technology to improve residents’ daily lives.

Here's more from HKTDC:

To further boost research and development, an additional HK$2 billion has been allocated, through the newly set up Innovation and Technology Bureau, for universities and R&D centres to carry out applied research projects.

The funding is a welcome fillip to the fast-growing sector, where in less than a year (from November 2015 to September 2015), the number of start-ups registered in Hong Kong grew from 1,065, to 1,558 – a 46 per cent increase.

In pledging HK$2 billion towards the main fund, the Chief Executive said that “innovation and technology start-ups require capital input at different stages of development.” He said that the matching fund would also encourage venture capital funds to invest in local innovation and tech start-ups.

Mr Leung outlined other initiatives to boost Hong Kong's innovation and technology sector, notably the Cyberport Macro Fund, a HK$200 million investment in ICT (information and communication technology) start-ups at Hong Kong Cyberport.

This is on top of the Cyberport Creative Micro Fund Scheme, a seed fund set up to sponsor high potential creative and innovative start-up projects or business concepts in ICT-related areas.

As well as the funding schemes of various universities to encourage innovation, the Chief Executive also cited the Hong Kong Science Park Corporate Venture Fund, which connects selected enterprises of the Science Park with partner venture capital firms and corporate enterprises.

The government would continue to give full support to start-ups at different stages of development, he said.