Listed as the fifth-fastest growing startup ecosystem in the world, Hong Kong is an attractive destination for startup founders and investors alike. Contributing factors are Hong Kong's strategic location and proximity to other markets, favorable taxation system and financial climate, and availability of funding. According to a survey by InvestHK, there were 3,985 startups, of which a large amount is at later stages of development according to a survey by the Hong Kong Trade Development Council. This is a testament to Hong Kong's favorability and huge potential as a home base as well as a bridge to other markets. In this article, we have compiled a comprehensive list of the top VC funds and angel investors in Hong Kong that may be the right funding partner for you.
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Topics Covered:
Why Should You Raise Funds in Hong Kong
Venture Capitalist Funds in Hong Kong
Angel Investors in Hong Kong
Why Should You Raise Funds in Hong Kong?
Here are a few reasons why startups should consider raising funds in Hong Kong:
1. Strategic Location:
Hong Kong is strategically located as a gateway to Mainland China and other Asian markets. Because of its proximity to large markets and its well-developed infrastructure, it is an appealing base for businesses aiming to grow their presence in the area. As part of the Pearl River Delta, Hong Kong is close to the world's largest industrial hub. Furthermore, The CEPA, or Closer Economic Partnership Agreement, between the mainland and Hong Kong also makes Mainland China more accessible and offers up a plethora of economic opportunities. Hong Kong is also a renowned worldwide financial center, with a strong banking system and an established capital market. Access to a diverse pool of investors, such as venture capitalists, angel investors, and institutional investors, provides numerous opportunities for startups to raise funding.
2. Ease of Doing Business and Low Taxation:
Hong Kong is well-known for its business-friendly atmosphere and simple regulatory procedures. Setting up a firm and doing business is reasonably easy and efficient, which reduces administrative barriers for entrepreneurs. Hong Kong's tax policy is competitive, with a straightforward and low tax structure. This can be advantageous for companies since it allows them to keep more of their revenues and reinvest them in their growth. Because of its favorable tax regime, Hong Kong also attracts a major amount of international investment.
3. Supportive Government Initiatives:
The Hong Kong government has put in place a number of measures to stimulate startup growth, make funding accessible, and stimulate innovation. These include investment schemes, tax breaks, incubation programs, and talent attraction programs; all of which may assist companies in decreasing their financial burden and increasing their capacity to grow. Some of these initiatives include a HK$30 billion Co-Investment Fund, Cyberport Incubation, and Acceleration Program, the development of Talent Services Unit and Top Talent Pass Scheme, HK$10 Billion Scheme for commercialization of R&D projects, and more.
Venture Capitalist Funds in Hong Kong
The venture capitalist funds below are actively looking for investments in promising companies throughout various stages and sectors. The stages stated do not limit the possibility of getting funding if your company is at any stage other than what is listed.
Year of Inception: 2018
Stage: Pre Seed, Seed, Series A, Series B
Focus: Blockchain
Notable Portfolio: FalconX, Polkadot, Ava Labs, Cosmos, CoinList, CoinMetrics
Year of Inception: 2016
Stage: Seed, Series A
Focus: Blockchain, Cryptocurrency
Notable Portfolio: Ethereum, Alchemy, Solana, Flare, Oasis Labs, Open Zeppelin
Year of Inception: 2013
Stage: Seed, Series A
Focus: Consumer, Enterprise, Deep Tech, FinTech, Carbon
Notable Portfolio: Airstack, Arima, Bounty Media, DocDoc, ORIG3N, QREDO
Year of Inception: 2019
Stage: Seed, Series A
Focus: Education, E-commerce, Digital Entertainment & Gaming, Lifestyle, HR, Web 3.0
Notable Portfolio: FindRecruiter, Workeroom, League Pass, UX Studio, KIX esports
Year of Inception: 2004
Stage: Seed, Series A
Focus: IT
Notable Portfolio: Meitu, PayMax, Douban, 360, Jiayuan
Year of Inception: 2011
Stage: Seed, Series A
Focus: Technology
Notable Portfolio: Phable, Mero, Spire, Subscript, Pipe Drive, General Assembly
Year of Inception: 2017
Stage: Seed, Series A
Focus: Web 3.0
Notable Portfolio: Ox, Arbitrum, Polkadot, ChainSafe, Scroll, Starkware
Year of Inception: 2003
Stage: Seed, Series A, Series B
Focus: AgriTech, Logistics, E-commerce, EdTech, Crypto
Notable Portfolio: GogoVan, Shopline, Medvine, Ivyspace
Year of Inception: 2015
Stage: Seed, Series A, Series B
Focus: Sector Agnostic
Notable Portfolio: Airwallex, Clearbox, Avaron, Dayta, WeLab, SandboxVR
Year of Inception: 2017
Stage: Seed, Series A, Series B
Focus: Technology
Notable Portfolio: Pulse Medica, Sympatic, Sheertex, Inclusive Genetics
Year of Inception: 1999
Stage: Seed, Series A, Series B, Series C
Focus: Science & Technology
Notable Portfolio: Air Wallex, Micro Connect, Fano Labs, Mio Tech, WeLab
Year of Inception:
Stage: Seed, Series A, Series B, Series C
Focus: Sector Agnostic
Notable Portfolio: 99 Group, KKDay, Glints, Lalamove, XTransfer
Year of Inception:
Stage: Seed, Series A, Series B, Series C
Focus: Technology
Notable Portfolio: Euclid, Ginko, JD Health, Wall Street English
Year of Inception:
Stage: Seed, Series A, Series B, Series C
Focus: Technology
Notable Portfolio: JD Technology, Crypto Finance, Leapstack, HKbitEX, Data Canvas
Angel Investors in Hong Kong
The Angel investors listed below are part of an Angel community located throughout Hong Kong. They may act as an individual or as a syndicate to fund projects of their preference, so these networks are the best opportunity for you to find a potential Angel with an aligned vision and interests.
Stage: Seed, Series A
Focus: Sector Agnostic
Notable Portfolio: Cloudcade, Dyad, Broadnet, ScanTrust, Kinetic One, Vericant
Stage: Seed, Series A
Focus: Sector Agnostic
Notable Portfolio: Floship, GRANA, Hummingbird Innovations, getScale, Moviepass
Stage: Seed, Series A
Focus: Sector Agnostic
Notable Portfolio: -
Stage: Seed, Series A
Focus: Technology
Notable Portfolio: -
Stage: Seed, Series A
Focus: Sector Agnostic
Notable Portfolio: -
Stage: Seed, Series A
Focus: Sector Agnostic
Notable Portfolio: Chayora, Monexo, Sinophi, Gaifong, Heartisans
Stage: Seed, Series A
Focus: Sector Agnostic
Notable Portfolio: -
Stage: Seed, Series A
Focus: Sector Agnostic
Notable Portfolio: Yodawy, Rology
Stage: Seed, Series A
Focus: Sector Agnostic
Notable Portfolio: Linkers, MONH, Hospitalia, Tasmimak, Tamarran
Hong Kong has as many, if not more, strategic assets and qualities to build on than some of the top ten ecosystems. Though Hong Kong's startup ecosystem is still in its infancy, its recent growth and increased collaboration with mainland China are two factors that have substantially influenced the Hong Kong economy. Defined by low taxes, unrestricted port commerce, and a well-established worldwide banking industry, Hong Kong is clearly on the right track to growth and presents itself as a highly promising market to partake in.
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