Over 8 in 10 HK startups anticipate growth in 2025

Of these, 37% even predict their businesses will double in size.

Eighty-two percent of Hong Kong startups anticipate business growth in 2025 despite global economic challenges, according to a survey by Inspect Element.

Of these, 37% even predict their businesses will double in size.

The survey, which gathered insights from nearly 100 startups across industries like AI, SaaS, lifestyle, and crypto, highlighted strong optimism despite global economic uncertainties.

Despite the overall optimism, about 8% of surveyed startups plan to scale down operations, with anticipated team reductions of 25-50%.

However, the majority remain focused on expansion, with 57% planning to increase their workforce in 2025, particularly in key talent hubs like Hong Kong and Shenzhen.

“Despite the weak macro environment, we’ve seen steady growth in the education industry and will maintain a risk-controlled expansion mode in 2025,” said Sarah Tong, founder of Big Bang Academy.

“Talent is crucial for scaling, and we plan to increase our headcount by 20-30% this year, focusing on both Hong Kong and Shenzhen to expand our talent pool,” he added.

The survey also showed startups relying on freelancers and AI for flexibility and efficiency. Sixty-two percent plan to hire freelancers or venture builders to scale, whilst 78% use AI automation to manage costs.

“Our productivity has significantly increased thanks to various AI tools, reducing the need for full-time involvement in many roles,” said Jessie Chan, the founder of a member-based online beauty media in Hong Kong.

“By 2025, we plan to expand our part-time and freelance workforce. This approach enhances flexibility, accelerates onboarding, and allows us to quickly assess a candidate's cultural alignment and skill suitability for a role,” she said.

Startup founders identified profitability (43%), sustainable growth (42%), and cash flow management (27%) as their biggest financial challenges.

Meanwhile, strategic priorities for 2025 include market expansion (64%), BD & partnership investment (57%), AI adoption (54%), and investments in branding and marketing (49%).

Funding remains critical, with 60% of startups aiming to raise $100,000 to $25m. Hong Kong (77%) and the U.S. (43%) are top funding sources, followed by Singapore (40%) and the Greater Bay Area (28%).