Hong Kong is set to ramp up efforts in attracting investors to develop start-ups, aiming to diversify the economy and boost innovation and technology (I&T) sector. City leader John Lee Ka-chiu is expected to announce changes to the HK$2 billion Innovation and Technology Venture Fund (ITVF) in his policy address.
One potential change may involve redirecting government investments from start-ups to venture capital funds, following a strategy seen in mainland China. The ITVF, established in 2017, encourages venture capital funds to co-invest in local I&T start-ups, with 20 funds currently participating as co-investment partners.
Between April 2019 and September of this year, the ITVF supported 53 investment projects and injected around HK$302 million into 37 local I&T start-ups. These projects span various sectors like supply chain management, e-commerce, biotechnology, and AI, attracting over HK$2.7 billion in private investments.
Overall, Hong Kong’s push for more aggressive measures signals a promising future for the city’s innovation and technology landscape.