Whenever a new company's market success emerges, especially in technology, it can in no small part be attributed to a venture capitalist.
Besides the usual capital required for a business, venture capitalists offer a sounding board for ideas, insights on the marketplace, advice on developing business opportunities, recruiting the right management team and acquisitions for future financing.
Among the diverse financial community, venture capitalists are a niche group of professionals dedicated to investing capital directly into private companies for equity; whether they are in seed or developmental stage or for a management buy-out.
At present, there are about 120 professionals in Hong Kong. Though not a big number, the industry has grown steadily since it first started some years ago. In a sophisticated industry in Europe and the United States, there are more than 2,000 companies with US$300 billion invested.
'Hong Kong is still the hub for venture capital/private equity where we are able to raise money internationally,' says Allan Homeming, executive committee member of the Hong Kong Venture Capital Association.
'Almost 95 per cent of the investments we make are outside Hong Kong, but within the region. In Hong Kong, we provide funds as well as legal and accounting advice to our investors and investee companies.'