Hong Kong startups miss out on up to $12.6m in grant funding

The estimate is based on responses from 118 startup founders, of whom 84 had not applied for government support.

Hong Kong startups are potentially missing out on up to $12.6m in government funding, according to a new survey by Aspire, a Singapore-based fintech firm. Despite being well-positioned to qualify, with 85% of surveyed founders having market-ready products and early-stage revenue, 71% had never applied for available grants.

The estimate is based on responses from 118 startup founders, of whom 84 had not applied for government support. Using a conservative 30–50% success rate and an average grant amount of $300,000, Aspire calculated a funding gap between $7.56m and $12.6m. 

The report noted this figure likely understates the total value lost, as it does not include indirect benefits such as increased credibility, access to technical support, and follow-on funding opportunities.

Those who did apply saw encouraging outcomes, with a nearly 49% approval rate. However, perceived complexity remains a major hurdle—51% of founders cited the process as too difficult, whilst 20% said information about programs was unclear or hard to access. Many respondents expressed a preference for more streamlined, digital-first guidance over traditional government communications.

Technology appears to play a key role in successful applications. Among those who received funding, 90% used AI tools to reduce preparation time by an average of 60%.

Despite the availability of sizable grants, application rates remain low. Fewer than 10% of respondents had applied for the Innovation and Technology Fund, which offers up to $800,000 per project, whilst only around 2% had applied for the BUD Fund, which can provide up to $7m per enterprise. 

Awareness of other programs, such as the SME Export Marketing Fund, was also below 15%.

The report highlighted a shift in funding strategy among Hong Kong startups. Just 12% of founders said they focus exclusively on the mainland China market, whilst 50% are actively pursuing private investment and overseas opportunities, particularly in ASEAN countries.