WHAT MAKE HONG KONG IDEAL DESTINATION FOR TECH STARTUPS STILL

With its entrepreneurial spirit and unlimited energy, the Hong Kong region is still ideal for launching a small business or startups. They are helped in their endeavors thanks to a strong network of incubator/accelerators, venture capitalists, government-sponsored programs, and the welcoming community that is created by the countless networking events, seminars, and associations that take place here. 

OVERVIEW

In the Global Innovation Index 2020, the Shenzhen-Hong Kong-Guangzhou technology cluster ranks second in the world in terms of innovation and technological sectors.

Startups in Hong Kong have increased from over 3,100 in 2019 to little over 3,300 in 2020, according to Jayne Chan, head of InvestHK's StartmeupHK program. These companies employ over 10,000 people across 116 co-working spaces, incubators & accelerators. 

Launched in 2012, StartmeupHK is InvestHK's dedicated team that promotes Hong Kong as a startup location.

Leaders of tech firms and startups in Hong Kong have identified four important sectors for the city's innovation and technology industry: biotechnology; artificial intelligence; smart cities; and financial technologies. 

In 05 years, the city's research and development spending as a percentage of its gross domestic product is predicted to double.

PIONEERING TECHNOLOGY

Historically, Hong Kong's start-up scene has had a competitive advantage in the region.

In addition to Lalamove, a logistics company, the city is home to SenseTime, a startup that uses artificial intelligence. These start-ups, valued at more than US$1 billion, have made substantial inroads in China and the Asia-Pacific region.

It's possible that in the past, some mediocre start-ups failed, but they were nevertheless able to raise capital from eager investors. Prior to receiving another round of funding, start-ups must ensure that they are on the right track and have a plan in place.

POSSIBILITIES TO EXPLORE

Investment conservatism has given start-ups the chance to develop business strategies and prove they are self-sustaining before seeking expansion.

Programmes such as HKSTP Ventures, which was originally launched in 2015 as the Corporate Venture Fund but has since been rebranded, may be of interest to high-potential tech businesses.

Fund connects Hong Kong's most promising start-ups to public and private financial sources. Up to September 2019, the fund had attracted 35 private investors.

ASSISTANCE TO START-UP COMPANIES

Projects supported by the Hong Kong Productivity Council range from driverless vehicles to robots and health care to sports technologies.

It also has a science park that shares lab facilities with burgeoning biotech companies like Opharmic, which is working on a technique to administer medication within the eye using ultrasound instead of needles.

Opharmic Technology co-founder Jan Engels remarked, “A large number of research funds are available to new tech businesses, as are a number of grant options for collaboration with local colleges, as well as connections to investors and cheap office space. There are a lot of opportunities for us in the Greater Bay Area, especially when it comes to production.”

For example, smarter energy use and improved traffic management are just a few of the Smart Cities technologies that Siemens is developing in Science Park for the benefit of potential clients from around the world.

QUALITY OF LIFE

There was an addition by Eric Chong,  President, and CEO, Siemens Hong Kong said: "Hong Kongers are known for their hard labor. We work hard, don't get me wrong, but we also know when to take a break."

In addition, Florian Spiegel, Co-founder and COO, FinFabrik said: "The outdoors and sports are more appealing to me, and in Hong Kong, we have hundreds of hiking paths in the lush hills around the city. There are magnificent beaches within an hour's boat ride. In the country parks, I ride my bike every weekend. It's a beautiful thing. I believe it's part of Hong Kong's magic."

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