Into the Dragon's Den Hong Kong-style
Anna Healy Fenton reports on a programme designed to help budding entrepreneurs find potential investors
It's a bizarre but perennial problem. Hong Kong may be a city of entrepreneurs and small and medium-sized enterprises, but they all face the same hurdle - a reluctance by banks to lend them any money. Finding funding to get started is a big struggle.
Five years ago the British Chamber of Commerce stepped into this void with the Baker Tilly Angel Programme. Designed to help embryonic businesses find their financial feet and connect them with potential angel investors, the idea resembles the popular British television show Dragon's Den, where investors examine and critique the business plans of hopeful start-ups with often brutal honesty before deciding whether to give them money or show them the door.
Accountants Baker Tilly Hong Kong liked the idea so much they decided to sponsor the British chamber's scheme. But it is not just a case of turning up and presenting a business plan. 'They don't walk away with a cheque,' stresses Baker Tilly Hong Kong managing director Andrew Ross.
The programme is aimed at companies in a US$500,000 to US$2 million range where Ross says it's tough to raise finance. 'So the British chamber came up with a platform whereby young budding Hong Kong entrepreneurs could present a business plan and then through the British chamber's network of individuals they could be connected to people who would be interested in investing in their projects.'
British chamber executive director Christopher Hammerbeck, and Angel Programme chairman Neil Orvay and vice-chairman Iain Reed lead a vetting committee, with up to 30 small companies applying to take part in thrice-yearly angel finance rounds.
After an initial vetting, they are whittled down to about 16 and then a final four. First time round, they make a presentation for 10 minutes, followed by a five-minute question and answer session. Then Suzanne Watkinson, director of business for Connect Communication, takes them off for pro-bono coaching in improving their presentation skills. Financial experts on the chamber's committee help them tighten and focus their business plan.
'It's not just for British companies and not just for chamber members,' says Hammerbeck, keen to spread the net as wide as possible.