Startup Funding Resources for Rising Entrepreneurs in Hong Kong
The Silicon Valley dream has taught us that just one idea can open the door to a world of possibilities, but only grit and perseverance can bring us closer to realizing them. Even so, those two things are more often not enough to guarantee success.
With thousands of startups pitching their own billion-dollar ideas, it’s difficult to cut through the noise and cash in on your concept, no matter how unique you think it is. Specifically, many startups lament challenges experienced in securing funding to launch.
If you are a founder and struggling to secure capital, here are some helpful avenues where you can apply for startup funding in Hong Kong!
Cyberport Macro Fund
The Cyberport Macro Fund is part of the Hong Kong government’s capital assistance programs under its flagship tech-focused business park, Cyberport. The HK$400-million investment fund provides Series A stage and later-round assistance to Cyberport entrepreneurs looking to accelerate.
Who qualifies: Startups must be incubatees or graduates of Cyberport’s programs, a Cyberport smart space company, or a Cyberport office tenant.
Design Incubation Programme
Providing financial support of up to HK$280,000, the Hong Kong Design Centre’s publicly funded Design Incubation Programme is a non-profit organization that aims to champion the industry’s creative minds and highlight what they can contribute to society.
The Programme runs for two years, enabling startups to address challenges in the early phases of business development through a free working space, training workshops, and industry connections. The provided financial assistance is meant to help founders fund operational, marketing, and developmental costs.
Who qualifies: Applicants must be a Hong Kong-registered and design-focused startup in the early-stages of development.
Enterprise Support Scheme
The government’s Enterprise Support Scheme aims to attract private investors to back the city’s research and development efforts. Hence, the fund primarily targets local startups’ in-house R&D by providing a maximum funding support of HK$10 million per project. Applications are accepted year-round, with the vetting process typically taking around two months.
Who qualifies: The fund prioritizes Hong Kong-based startups that focus on R&D.
Alibaba Entrepreneurs Fund
An initiative from Chinese e-commerce behemoth, the Alibaba Entrepreneurs Fund (AEF) provides startups with investment capital and strategic resources to penetrate the global market through its own ecosystem. It comprises two main funds: the AEF Hong Kong Fund for seed, series A, or later-round startups based in Hong Kong, and the AEF Greater Bay Area Fund, which focuses on series B or later-round startups in the city, as well as series A or later-round startups based in the rest of GBA.
Funds are run through a venture capitalist model, meaning an independent investment body oversees capital. Profits generated are reinvested in the fund.
Who qualifies: While the fund is sector-agnostic, you may gain an edge if your startup can use the resources from the Alibaba ecosystem, which means a focus on financial technology, artificial intelligence, and sustainability.
Green Tech Fund
Established in 2020, the Green Tech Fund is a HK$400-million program that backs R&D startups focused on decarbonizing Hong Kong. It has four priority areas, namely net-zero electricity generation, energy saving and green buildings, green transport, and waste reduction.
Funding per project ranges from HK$2.5 million to HK$30 million for designated local public research institute or R&D centers, and from HK$2.5 million to HK$20 million for local companies.
Who qualifies: The fund accepts applications from designated local public research institutes, as well as the five R&D centers designated by the Innovation and Technology Fund (click here for the full list). Applicants must be local companies.
Smart Traffic Fund
Launched in 2019, the Smart Traffic Fund earmarked HK$1 billion to support innovative and technology-focused projects that enhance road efficiency and improve driving practices. The fund has so far approved 13 batches of projects since it commenced in 2020-2021. The two most-recently approved projects covered a testing function for autonomous vehicles and route planning and traffic prediction solutions for tourist coaches, bagging HK$20.4 million in total grants.
Who qualifies: Companies, research institutions, professional bodies, trade associations, and non-government organizations may apply for projects that focus on innovation and technology. Projects must also be feasible in Hong Kong. Applicants are split into two divisions: corporate and public.
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