Hong Kong's Policy Address on Innovation and Technology Investment
Hong Kong is taking bold steps in its Innovation and Technology sector to attract investment for start-ups amid changing economic circumstances. In the forthcoming policy address, Chief Executive John Lee Ka-chiu will unveil key updates to the HK$2 billion Innovation and Technology Venture Fund (ITVF), aiming to make the funding landscape more appealing to investors.
New Strategies for Investment
Sources hint at a potential pivot where the government may stop direct investments in start-ups, opting instead to channel funds through venture capital to enhance market appeal. This aligns with practices in some mainland Chinese municipalities, reflecting a shift towards a more aggressive investment strategy.
Strengthening Co-Investment Partnerships
- The ITVF's goal is to attract co-investment.
- The government may double the amount a partner invests.
- There are currently 20 venture capital partners involved.
Investment Climate Challenges
The fundraising environment has been adversely affected by Covid-19 and ongoing geopolitical tensions. Industry experts stress the urgency of innovative funding solutions to support start-ups facing a tighter capital landscape.
Industry Recommendations
- Consider direct investment in venture capital funds.
- Engage professional fund managers as limited partners.
- Attract foreign investments to stimulate growth.
As Gordon Yen from the Hong Kong Business Angel Network notes, the ultimate goal should be to expedite capital access for start-ups battling for survival and growth.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.