Hong Kong chief executive announces HK$2 billion fund to boost investment in innovation and technology
Innovation and Technology Venture Fund will encourage private venture funds to invest in start-ups through a matching process
A new HK$2 billion government fund to boost investment in innovation and technology has been announced by chief executive Leung Chun-ying in his policy address, with more funding of an equal amount to boost university scientific research.
The Innovation and Technology Venture Fund is aimed at encouraging increased funding from private venture funds in technology start-ups through a matching process.
It will provide support to early stage start-ups which currently struggle to raise money to support their businesses from prototype to commercialisation stages, according to Duncan Chiu, vice-president of the Hong Kong Business Angel Network and managing director of Radiant Venture Capital.
“It will encourage more professional venture capitalists to come to Hong Kong and, in that sense it’s chicken and egg, if we have more venture capitalists coming to Hong Kong, then we will attract more overseas talent to Hong Kong to start their start-ups,” Chiu said.
Chiu said the larger than expected size of the matching fund will allow a longer cycle for investment in start-ups as the necessary investment period is five to seven years, meaning funding will not run out before returns are made.
Scientific research is set to gain more support to commercialise findings with another HK$2 billion earmarked through the Innovation and Technology Bureau for universities to carry out applied research projects.