The Cyberport Creative Micro Fund

Excerpt from the Hong Kong case study in Nesta's ‘Idea Bank’ for Local Policymakers:

Hong Kong’s startup ecosystem is growing rapidly. According to the 2015 Global Startup Ecosystem Ranking, it is the 25th largest startup ecosystem in the world in terms of size and 5th fastest growing in terms of expansion. The financial technology (‘fintech’) and internet of things (‘IoT’) sectors, in particular, have boomed. Hong Kong is a major financial centre, which makes it an attractive place for fintech startups looking to collaborate or sell to banks or insurance companies. In addition, its proximity to the Chinese manufacturing hub of Shenzhen makes it an inviting location for IoT companies in need of rapid prototyping. New businesses in Hong Kong also benefit from low tax rates, modern infrastructure and ease of company formation.

Despite being a financial hub, many Hong Kong startups report problems in raising seed funding. The reasons are unclear, but one possible explanation is that the financial and real estate markets offer much more attractive investment opportunities. Whatever the cause, however, the Hong Kong government realised that additional support was needed, and so set up several investment funds, grants and loan guarantee schemes to try and improve the situation for tech startups trying to raise funds in the city.