HK$50m Science Park fund to invest in Hong Kong start-ups will launch in July
The HK$50 million corporate venture fund earmarked to help technology start-ups that was announced in the financial secretary's budget will be launched on July 3, the Hong Kong Science Park said.
The HK$50 million corporate venture fund earmarked to help technology start-ups that was announced in the financial secretary's budget will be launched on July 3, the Hong Kong Science Park said yesterday.
Allen Yeung Tak-bun, the park's chief corporate development officer, said the park was presenting the fund to a few potential sponsors in the private sector to persuade them to donate money, and so far the response had been positive.
The fund will allow technology start-ups working in the park to receive up to HK$8 million to help them overcome challenges during their growth.
In return, Yeung said the park would hold no more than 20 per cent of a start-up's shares.
He said the park was talking to around 10 companies - most of which had been struggling to find investors - and hoped to invest in 10 to 20 start-ups eventually. Yeung was confident the fund would attract angel or institutional investors to invest capital into start-ups.
For every dollar invested in the fund by the park, these co-investors would invest the same amount or more.
"Many of these investors have difficulties evaluating the potential and integrity of start-ups," Yeung said. "But we know how these companies in the park are performing, and if we are also investing in them it can boost the confidence of other potential investors."
He said investors often skipped Hong Kong and went to the mainland in search of opportunities as there were more projects to choose from across the border, but short-listing them in Hong Kong could save investors time and help attract them to local start-ups.
An investment committee of five to seven members chaired by the park's chief executive is being set up to vet start-up proposals. It will include independent investment experts, preferably with a background in technology, to manage the fund.
Yeung said the fund was not aiming to make a profit but would not want to lose capital. He said the project might choose to sell any shares it owned in the start-ups early rather than hold out for higher returns so as to recycle money quickly to help more companies.
The park would exit the project if its shares were to be acquired by other investors or put up for initial public offering, Yeung added.
