Swire accelerator supports Hong Kong start-ups with free legal framework

A website designed to give Hong Kong start-ups a free legal framework in their early stages and as they seek investment has been launched by Swire Properties’ accelerator blueprint, law firm Bird & Bird and early stage investor Seedcamp.

“The whole idea behind this was not to say this is the perfect and the only absolute way to do things, it was more to position a framework that people could use as that starting point, negotiate and find their own investment terms,” said Padraig Walsh, partner at Bird & Bird.

Hong Kong’s start-up scene has been growing rapidly with new accelerators run by private companies to support entrepreneurship popping up across the city as well as government plans to provide HK$2 billion in funding on a matching basis as announced earlier this year.

The Seedsummit documents were drawn up in line with Hong Kong law after consultation with entrepreneurs and investors in the city found some were referring to legal advice they had found online that was often based on California law – a major hub for start-ups.

Walsh said certain local conditions and the gradually maturing start-up scene made it necessary to provide guidelines for entrepreneurs in Hong Kong.

These conditions include entrepreneurs in Hong Kong paying legal costs related to investment deals, unlike overseas where a lead investors cover the fees.