The Hong Kong Industrial Technology Centre Corp has launched a loan fund to support technology companies and a Techlink database to cultivate partnerships in the industry.
Chief executive James Liu said the fund would help young entrepreneurs start high-technology firms.
'We want to encourage research and development, but because of [high risks involved] people have been less inclined to invest in technology companies,' he said.
The loans will cover multimedia and networking, telecommunications, software and systems, and microelectronics. Up to $300,000 per company will be available and come from the group's Seed Capital Fund of $5 million.
Double the amount borrowed will have to be repaid, but only once a company achieves profitability. 'If the company does not make it, we have lost that loan money, but if they succeed, we share in the profits,' Mr Liu said.
Companies must be small and new to be eligible. The group requires a personal guarantee of 20 per cent of any loan and for the start-up to match its contribution. The application period runs from February to April.