HONG KONG – Hong Kong's startup ecosystem has been steadily maturing in recent years, leading to a surge in early-stage firms with significant potential, data from Invest Hong Kong (InvestHK) show.

The number of startups in the special administrative region reached a record high of 4,694 in 2024, a 10 percent year-on-year increase and approximately 40 percent more than that in 2020, according to the latest InvestHK statistics.

Growth has been particularly strong in the health and medical sector, and in the sustainable technology/green technology sector, the data show.

READ MORE: Startups rise on capital ideas

Startups employed nearly 18,000 people, reflecting a 7 percent year-on-year increase and growth of around 65 percent since 2020, clearly showing their substantial contribution to the labor market.

Speaking on the latest situation in the sector, Alpha Lau Hai-suen, director-general of Investment Promotion at InvestHK, attributed the robust growth to proactive government measures aimed at supporting its development.

“The Hong Kong government has spent a lot of effort to promote emerging sectors and emerging companies, resulting in remarkable growth in the total number of startups,” she said.

ALSO READ: HK proposes new funding initiatives, institutional restructuring for I&T growth

Riverchain, a local fintech startup established two years ago, which provides a digital financing platform for the construction industry, highlighted that Hong Kong's well-established financial infrastructure has been instrumental to its development.

“Hong Kong was very strategic to our growth. We want to be more than just a Hong Kong company, we want to be an international company,” Riverchain Chief Executive Officer Ben Wong said, adding that the city provides them with a strategic location, just a four-hour ride to Southeast Asia.

Emphasizing the quality of talent in Hong Kong, he said that it is among the best in the world, offering a reliable pool of highly skilled and knowledgeable individuals.

One emerging segment in Hong Kong's innovation landscape is femtech, which focuses on technology solutions for women's health.

According to Maaike Steinebach, founder and CEO of Femtech Future, a startup that assists other femtech startups, Hong Kong has an amazing entrepreneurial ecosystem, making it very easy to set up a company in the city.

“It took me about a week to set it up – the company secretariat and accountants are readily available. There are also amazing co-working spaces, making it convenient for a startup like me,” she said.

InvestHK, a government department founded in July 2000 to facilitate overseas businesses to set up and expand in the special administrative region, said it will continue to engage with companies around the world through its 34 global offices in 2025.

READ MORE: Surveys: Number of startups, multinationals in HK at record

It aims to provide potential investors and businesses in the Chinese mainland and overseas with the latest information about the SAR’s business environment.

InvestHK is also focused on enhancing its investment promotion capabilities by expanding its overseas network, particularly in countries involved in the Belt and Road Initiative. This includes establishing a new office in Türkiye that is expected to become operational in the first quarter of next year.