Hong Kong venture capitalists urge more support for local start-ups
Venture capitalists in Hong Kong are calling for stronger support from governments, corporations and banks to strengthen the start-up ecosystem and boost innovation in the city.
Speaking at the StartmeupHK venture forum on Tuesday, a panel of venture capitalists pointed out that Hong Kong needs to make banking easier for small companies looking to establish themselves in Hong Kong and build a stronger support system for small companies in order to compete with start-up hubs such as Singapore.
“The banking system needs to be fixed for start-ups, this is a fundamental issue for a number of companies trying to set up here,” said Kent Ho, partner at venture capital firm Spectrum 28. “This is why we lose a lot of start-ups to Singapore.”
The Hong Kong Monetary Authority acknowledged last July that it had “noted comments from companies facing difficulties in opening bank accounts recently, especially start-ups and foreign companies”. It said that guidelines would be issued to banks regarding the opening of accounts to balance regulatory requirements and serving the public.
How many people carry their electricity bill with them to prove to HSBC that they’re actually a person here in Hong Kong?
Such issues are also why industries like financial technology (fintech) are so popular in Hong Kong, according to Steve Monaghan, limited partner at VC firm True Global Ventures.
Fintech start-ups help to disrupt the “core transactions” in traditional banking systems and thus have much opportunity to tap into markets like Hong Kong or in areas where there is a lack of financial inclusion, according to Monaghan.