The Hong Kong Science and Technology Parks Corp launched the city’s first public-private partnership fund in innovation and technology on Monday to bridge the financing gap for startups.
Financial Secretary Paul Chan Mo-po said: “Innovation and technology are a crucial pillar for Hong Kong’s future prosperity.”
The international financial hub’s startups have grown 40 percent since 2020 to 4,700 companies, and Chan said he expects this number to “continue rising at a remarkable pace”.
The funding support is vital for startup growth, he added. "For frontier technologies, the government must take the initiative to demonstrate its commitment.”
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The Hong Kong government founded Hong Kong Investment Corp Ltd in late 2022 to support early-stage projects and high-tech industries. The company has invested in more than 90 projects and achieved a 1:4 co-investment ratio, meaning every dollar invested attracts four dollars from the market.
Chan said he is confident that the HKSTP’s fund will amplify the collective ability to transform innovation into tangible outcomes, helping startups and entrepreneurs accelerate growth and enhance global competitiveness.
The inaugural fund has secured four initial partners: Cathay Innovation, a multi-stage venture capital firm affiliated with Cathay Capital; Fook Man Development Co, owned by Dongguan Communications Investment; Hangzhou Industrial Investment Group; and Zhejiang Communications Investment Group.
These partners will provide insights to tech enterprises and connect over 100 innovation and technology businesses for global expansion opportunities, as well as help local startups enter the Chinese mainland market.
The fund is managed by a subsidiary of the Hong Kong Science and Technology Parks Corp that has obtained a license from the Securities and Futures Commission of Hong Kong to serve as the investment manager of its limited partnership fund.
Chairman of Hong Kong Science and Technology Parks Corp Sunny Chai Ngai-chiu noted that financing issues remain one of the biggest challenges for startups, which may face limited funding channels, lengthy fundraising cycles, and complex investment environments — obstacles that could hinder their innovation, growth, and market expansion.
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This fund program can play a key role in addressing these issues by not only providing a reliable source of funding but, more importantly, acting as a catalyst to drive participation from private investors, Chai added.
Derek Chim, head of incubation and acceleration programs at HKSTP, said that the company will carefully evaluate whether potential partners have long-term strategic significance to ensure continuous innovation momentum and synergy for the ecosystem.
Contact the writer at tianyuanzhang@chinadailyhk.com
