Funding Sources

Besides progressive regulatory policies, Hong Kong's government offers multiple funding schemes to help start-ups establish, grow and expand. From R&D support, favourable tax deductions, waived fees and financial hiring assistance to offering matching funds for development, fundraising and even overseas expansion, Hong Kong offers unmatched opportunities for Fintech innovation.

HK Government Funding Schemes Relevant to Fintech - One-Pager

Company Set Up

Starting up your Fintech company in Hong Kong is exceptionally easy and affordable, with regulations aimed at encouraging new business development.

InvestHK offers a wide range of customised services, company registration procedures, visa application, find office / co-work space , free of charge, for any business stage you are in.
https://www.investhk.gov.hk/en/setting-hong-kong/how-we-can-help.html

HKSTP Programmes

Science And Technology Entreprenenur Programme (STEP)

Turn your brilliant ideas into reality and launch successful ventures with STEP, our one-year startup support programme for tech-focused entrepreneurs. Through the programme, learn the fundamental skills you need to kickstart your business.

Leading Enterprises Acceleration Programme (LEAP)

The Leading Enterprises Acceleration Programme (LEAP) gives startups wings to fly and fast tracks their global expansion. The growth-stage business acceleration programme is designed to support high potential startups in all industries.

INCU-TECH Incubation Programme

Incu-Tech is a three-year programme aimed at helping technology startups specialising in deep tech research to develop innovative solutions. Work in our furnished office spaces, access world-class R&D equipment and lab services across our campus.

INCU-APP Incubation Programme

Incu-App is a two-year programme designed to help startups develop new solutions from existing technology. We provide designated account managers who can give you professional guidance, so you can tap into industry expertise in content development, application platform and market support value chains through partnerships with top companies in Hong Kong.

ELITE Programme

Through the ELITE Programme, HKSTP offers generous subsidies to help local companies advance their proven R&D work in Hong Kong and to attract non-local start-ups of a defined scale to pursue the R&D of their innovative solutions based in Hong Kong Science Park.

The subsidies are equivalent to up to 50% of a candidate company’s R&D expenditures to a maximum of HK$20 million, plus up to HK$1.5 million of rental subsidies in the form of free rental at Hong Kong Science Park.

Cyberport Programmes

Cyberport Creative Micro Fund (CCMF)

Cyberport Creative Micro Fund encourages innovation and creativity in Hong Kong.

Cyberport Incubation Programme

Cyberport Incubation Programme supports entrepreneurs and start-ups with resources that aim to accelerate their growth.

Cyberport Accelerator Support Programme

Cyberport Accelerator Support Programme prepares Cyberport incubatees and alumni for international markets and investors, providing up to HK$300,000 financial assistance to each successful applicant.

Overseas/ Mainland Market Development Support Scheme (MDSS)

To continuously support Cyberport community companies, the Overseas/Mainland Market Development Support Scheme (MDSS) is announced by Hong Kong Government to provide a financial subsidy for graduates of Cyberport Incubation Programme (CIP) and Cyberport Creative Micro Fund (CCMF) to develop Mainland and Overseas market.

Cyberport Macro Fund (CMF)

The CMF is an investment fund which targets to co-invest with other private and public investors in the Cyberport digital entrepreneurs.

The CMF, with a total size of HK$400M, is set in place to:

provide seed to Series A stage and beyond funding to Cyberport digital entrepreneurs to assist them to accelerate; and
promote the development of the venture capital ecosystem for digital entrepreneurs in Hong Kong.

R&D

The Hong Kong Government operates multiple schemes designed to offer financial, tax, research and technological support to Fintech companies as they grow and develop.

Enterprise Support Scheme (ESS)

ESS aims to provide funding support for local companies to conduct in-house research and development (R&D) work with a view to encouraging the private sector to invest in R&D.

Provides on a dollar-for-dollar matching basis.
Maximum Funding Support: $10 million per approved project.
Maximum Project Duration: 24 months in general.
Intellectual Property Rights Ownership: recipient company.
Recoupment of Government’s Contribution: NOT required.
Benefit Sharing of Commercialised R&D Results: NOT mandatory.

Partnership Research Program (PRP)

PRP aims to support applied research and development (R&D) projects undertaken by R&D Centre or designated local public research institutes in collaboration with private companies.

Provide matching funding support for Collaborative R&D projects.
Maximum Project Duration: 36 months.
Industry Sponsorship: at least 50% of the total project cost.
Intellectual Property (IP) Rights Ownership: industry co-applicant if it contributes at least 50% of the total project cost.

Technology Start-up Support Scheme for Universities (TSSSU)

TSSSU provides funding to six universities to support their teams in starting technology businesses and commercialising their research and development (R&D) results.

Maximum funding support: annual funding of up to $8 million is provided to each of the six universities.
Each funded technology start-up may receive up to $1.5 million each year for no more than three years.
Scope of funding: essential items for setting up and operating the start-ups (e.g. furniture and equipment, legal and accounting services, rental of necessary and suitable premises, manpower, etc.), expenditure on R&D, promotion activities and marketing of their R&D deliverables, products or services.
Provision of funding: funding is provided to the universities on a reimbursement basis after the close of each Government fiscal year.
Intellectual property rights ownership: approved start-up and/or associated university.

Research and Development Cash Rebate Scheme (CRS)

CRS aims to encourage more research and development (R&D) investment in the private sector and encourage companies to establish a stronger partnership with local public research institutes.

The Scheme provides a cash rebate equivalent to 40% of a company's eligible expenditure in two types of applied R&D projects –

R&D projects funded by the Innovation and Technology Fund (ITF) ("ITF projects"); and
R&D projects funded entirely by companies and conducted in partnership with designated local public research institutes ("Partnership projects").

Enhanced Tax Deduction for R&D Expenditures

The Enhanced Tax Deduction provides for expenditure incurred by enterprises on qualifying research and development (R&D) activities in order to encourage more enterprises to conduct R&D activities in Hong Kong.

The deduction will be 300% for the first $2 million of the aggregate amount of payments made to “designated local research institutions”(DLRI) for “qualifying R&D activities” and “qualifying expenditures” incurred by the enterprises, and 200% for the remaining amount.

There is no cap on the amount of enhanced tax deduction.

Hiring

Hong Kong offers a vast talent base of college-educated IT and financial services professionals at all levels of experience, plus visa support for international Fintech R&D talent through TechTAS.

TechTAS

TechTAS provides a fast-track arrangement for eligible companies to admit overseas and Mainland technology talent to undertake research and development (R&D) work in Hong Kong.

Visa for Fintech R&D Talent.
Eligible companies would first have to apply for a quota.
A company allotted with a quota can accordingly sponsor eligible persons to apply for an employment visa/entry permit within the quota validity period.
It also has to fulfil the requirement to employ new local employees.

Research Talent Hub for ITF projects (RTH-ITF)

The RTH-ITF aims to provide funding support for organisations/companies undertaking research and development (R&D) projects funded by the Innovation and Technology Fund (ITF) to engage research talent to conduct R&D work. The RTH-ITF merged the previous Researcher Programme and Postdoctoral Hub for ITF projects.

Each ITF project can engage up to 4 research talent at any one time.
The maximum engagement period for each research talent is 36 months in general.
The maximum monthly allowance is HK$18,000 for research talents with a bachelor degree, HK$21,000 for those with a master degree, and HK$32,000 for those with a doctoral degree.

Research Talent Hub for Technology Companies Conducting R&D Activities in Hong Kong (RTH-TC)

The RTH-TC aims to provide funding support for technology companies conducting or planning to conduct research and development (R&D) activities in Hong Kong to engage research talents to conduct R&D work. The RTH-TC merged the previous Researcher Programme and Postdoctoral Hub for technology companies conducting R&D activities in Hong Kong.

An applicant company can engage up to 4 research talents at any one time.
The maximum engagement period for each research talent is 36 months in general.
The maximum monthly allowance is HK$18,000 for research talents with a bachelor degree, HK$21,000 for those with a master degree, and HK$32,000 for those with a doctoral degree.

Research Talent Hub for Incubatees and I&T Tenants of the HKSTPC and the Cyberport (RTH-SPC)

The RTH-SPC provides incubatees and innovation and technology (I&T) tenants of the Hong Kong Science and Technology Parks Corporation (HKSTPC) and the Hong Kong Cyberport Management Company Limited (Cyberport) with funding support for the recruitment of research talents to conduct research and development (R&D) work. The RTH-SPC merged the previous Researcher Programme and Postdoctoral Hub for incubatees and I&T tenants of the HKSTPC and the Cyberport.

Each applicant company can engage up to 4 research talents at any one time.
The maximum engagement period for each research talent is 36 months in general.
The maximum monthly allowance is HK$18,000 for research talents with a bachelor degree, HK$21,000 for those with a master degree, and HK$32,000 for those with a doctoral degree.

Business Development

Hong Kong provides financial support for adopting technological services and solutions, making it easier for new enterprises to scale up their operations.

Technology Voucher Programme (TVP)

TVP aims to support local enterprises/organisations in using technological services and solutions to improve productivity, or upgrade or transform their business processes.

Provide funding for projects on a 3 (Government):1 (enterprise/organisation) matching basis.
Cumulative funding ceiling per enterprise/organisation: HK$600,000.
Up to 6 projects per enterprise/organisation.

Fundraising

Tech start-ups in Hong Kong can get government funding at a very favourable 1:2 ratio to venture capital, perfect for young businesses ready to grow.

Innovation and Technology Venture Fund (ITVF)

The Government has set up a HK$2 billion Innovation and Technology Venture Fund (ITVF) in 2017 with a view to attracting more venture capital (VC) funds to co-invest in local innovation and technology (I&T) start-ups in Hong Kong.

Co-investment scheme targeted at eligible local I&T start-ups.
Matching investment ratio of approximately 1 (ITVF) : 2 (Co-investment Partner (CP)).
The Innovation and Technology Venture Fund Corporation's (ITVFC) matching investment ceiling:
1) Aggregate amount of matching investments with a CP not more than HK$400 million;
2) Aggregate amount of investments in an investee company not more than HK$50 million; and
3) For each co-investment in an investee company, the matching investment shall constitute not more than (i) 40% of the original total target investment amount sought by the investee company, or (ii) HK$30 million, whichever is the lower.

SME Financing Guarantee Scheme

The Scheme aims at helping local small and medium-sized enterprises (“SMEs”) and non-listed enterprises to obtain financing from participating lenders for meeting their business needs so as to enhance their productivity and competitiveness in the rapidly changing business environment. Under the Scheme, the HKMCI may provide guarantee coverage of 50%, 60% or 70% to the credit facilities of eligible enterprises approved by participating lenders.

The 90% Guarantee Product aims at providing additional support to the Enterprises, businesses with relatively less operating experience, as well as professionals seeking to set up their own practices, to obtain financing. application period will last until end-June 2022. Guarantee Fee Concessions and Further Concessions in Guarantee Fee apply to the 90% Guarantee Product as well.

The Special 100% Loan Guarantee under the Scheme started to receive applications on 20 April 2020. The Special 100% Loan Guarantee aims at alleviating the burden of paying employee wages and rents by the Enterprises which are suffering from reduced income to help minimising enterprise shutting down and layoffs. The application period will last until 31 December 2021.

Overseas Expansion

When your company is established and ready to expand into Mainland China, ASEAN or abroad, Hong Kong operates multiple schemes to help your brand, upgrade, and export your product to new markets.

Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund)

The BUD Fund provides funding support for individual Hong Kong enterprises to undertake projects to develop brands, upgrade and restructure their business operations and promote sales in Mainland China and ASEAN, so as to enhance their competitiveness and to facilitate their business development.

Funding will be provided on a matching basis, i.e. the Government will cover a maximum of 50% of the total approved project cost and the enterprise has to contribute no less than 50% of the total project cost in cash.

During the tenure of the BUD Fund, each enterprise may obtain funding for a maximum of forty approved projects and the total cumulative funding amount is $4,000,000 under the “Mainland Programme” and the “FTA Programme”.

SME Export Marketing Fund (EMF)

Provides funding support to SMEs for their participation in the following export promotion activities to promote their own products and/or services. Such export promotion activities/platforms must be organised/operated by organisations with a good track record:

1) Trade fairs/exhibitions outside Hong Kong.
2) Business missions outside Hong Kong.
3) Local trade fairs/exhibitions which mainly target markets outside Hong Kong.
4) Placing advertisements on trade publications which mainly target markets outside Hong Kong.
5) Export promotion activities (such as placing advertisements, keyword search, listing product information, setting up or enhancing online shop, participating in virtual exhibitions, etc.) which are conducted through electronic platforms/media and which mainly target at markets outside Hong Kong.
6) Setting up or enhancement of a corporate website/mobile application of the applicant enterprise which mainly targets at markets outside Hong Kong.

Hong Kong has been the world’s top IPO market seven of the last 13 years and an increasingly popular choice for Asia’s FinTech companies thanks in part to highly attractive listing rules designed for tech companies. In terms of IPO fundraising volume, Hong Kong ranked sixth globally.

ITVF Co-investment Partners

Beyond Ventures

Beyond Ventures was established in 2017. The fund management team is led by three CoFounders & Managing Partners, Mr. Lap MAN, Mr. Alex FANG and Mr. Marvin HUNG as well as an investment company - Hony Capital. Beyond Ventures focuses on investments in technology, media and telecommunications, artificial intelligence, biotechnology and healthcare.

BVCF

BVCF was established in 2005. The fund management team is led by Dr. YANG Zhi, Founder & Managing Partner, and two other General Partners, Dr. Robert LI and Ms. Vanessa HUANG. BVCF focuses on investments in international growth stage life sciences companies. Investment subsectors include biopharmaceuticals, medical technology, healthcare IT and healthcare services.

Greater Bay Area Homeland Development Fund

Greater Bay Area Homeland Development Fund was established in 2018. The fund management team is led by veterans in the industry. The Greater Bay Area Homeland Development Fund focuses on investing in consumer, healthcare and innovative technology sectors in the Greater Bay Area.

Hendale Fund

Hendale was established in 1995. The fund management team is led by Mr. Henry LEE, Managing Partner, and Mr. Geoff LEE, Partner. Hendale looks for sectors with robust growth characteristics supported by long term trends and its investments are open to all sectors.

Hong Kong X Technology Fund

Hong Kong X Technology Fund was established in 2016. The fund management team is led by three Founders & Partners, Mr. SHEN Nan Peng, Prof. LI Ze Xiang and Prof. CHEN Guan Hua. Hong Kong X Technology Fund focuses on investing in Fintech, big data, artificial intelligence, robotics, biotechnology, medical science, medicine, microelectronics, materials and energy.

Isola Capital

Isola Capital was established in 2014. The fund management team is led by Mr. Anthony Chan, Chief Executive Officer, Shareholder and Member of the Board of Isola Capital Group and Mr. David Zhang, Managing Director. Isola Capital focuses on investing in consumer and related sectors with companies that possess intellectual property, such as fintech, online-to-offline commerce, and development of technologies relevant to education, financial services, insurance, health and wellness, as well as food and beverage sectors.

Lingfeng Capital

Lingfeng Capital was established in 2015. Lingfeng Capital focuses on investing in fintech. The fund management team is led by Mr. Ning Ma, Founder and Partner and Mr. Ming Shu, Partner.

Mindworks Ventures

MindWorks Ventures was established in 2014. The fund management team is led by two Founding Partners, Mr. David CHANG and Mr. Joe CHAN. MindWorks Ventures seeks to make investments in growth-stage technology companies with a focus in Fintech, logistics, travel and artificial intelligence.

Radiant Tech Ventures

Radiant Tech Ventures was established in 2016. The fund management team is lead by Dr. Gordon YEN, Founding & Managing Partner, and Mr. CHOW Ching Ning, Michael, Managing Partner. Target sectors include internet economy, FinTech, robotics, healthcare technology, smart city, autonomous driving, artificial intelligence and new materials.

Other Fintech Investors in Hong Kong

AFG Partners

AFG is a FinTech VC fund that is uniquely positioned and differentiated in Asia. It is AFG's thesis that the next generation of FinTechs that will transform Asian financial services will be Enterprise / B2B FinTechs that partner with both incumbent financial institutions to counter the wave of disruption as well as new emerging players in big tech / e-commerce that want to secure their place in a world where tech and finance are merging.

Alibaba Entrepreneurs Fund

The Alibaba Entrepreneurs Fund is a not-for-profit initiative of Alibaba Group that provides entrepreneurs and young people with investment capital, strategic guidance and internship opportunities to help them better achieve their goals.

AngelHub

AngelHub is the tech investment platform enabling investors to co-invest on a deal by deal basis along our fund & institutional investors.

AngelHub combines a highly selective due diligence process, diverse network of partners, and the WHub start-up ecosystem to empower tech entrepreneurs for success,

Bertelsmann Asia Investment (BAI)

Founded in January 2008, Bertelsmann Asia Investments (BAI) now manages funds exceeding $3 billion and has invested in more than 160 portfolios including 10 IPOs and 20+ unicorns. BAI focuses on sectors including Urbanization and Retail, Finance, China Based Global Company, Social/ Media/ Content and Tech & Infrastructure. As an evergreen fund, BAI accompanies portfolios’ growth with a long-term and strategic vision. BAI also has access to Bertelsmann’s vast resources and global channels to facilitate the expansion plans of startups. Bertelsmann is a media, services and education company that operates in about 50 countries around the world.

Betatron Venture Group

Betatron Venture Group invests in early-stage, Asia-focused companies. Betatron Venture Group is hands-on and committed to helping founders grow.

Bitrock Capital

BitRock Capital is a leading investment firm, with a focus on Fintech innovations disrupting the traditional financial services market.

BitRock Capital invests in rapidly growing segments including supply chain finance, consumer finance, payment, and Fintech infrastructure such as AI, blockchain, big data and cloud.

BitRock Capital is sponsored by GLP, a leading global investment manager specializing in logistics and related technology investments, with US$64 billion of assets under management in real estate and private equity funds around the world.

CCV

Founded by former KPCB China Managing Partner, Wei Zhou, together with his TMT investment team of 10 years at the firm. CCV backed founders building iconic companies from the early stage.

Chow Tai Fook Enterprises (CTFE)

CTFE is a premier family investor with strategic investments in energy, aircraft leasing, healthcare, education and media; marquee investments in prime real estate and hospitality services; private equity investments in quality growth companies mainly in the technology sector and a liquid portfolio of equities and bonds.

Click Ventures

Click Ventures is an early stage venture capital firm investing in highly scalable technology startups across a variety of promising sectors.

Gobi Partners

Gobi Partners is a leading Pan-Asian venture capital firm investing in early-stage startups across a wide range of technology sectors since 2002. Gobi Partners has 12 offices, a footprint that covers Northeast Asia, Southeast Asia, South Asia, and the Middle East. In Hong Kong, Gobi is the exclusive General Partner (GP) for the Alibaba Entrepreneurs Fund (AEF), building the Greater Bay Area ecosystem.

HashKey Capital

HashKey Group participates in high potential digital asset investment opportunities for institutional investors and creates and funds their own investment initiatives in the blockchain space.

HKSTP Ventures

HKSTP Ventures (officially known as the Corporate Venture Fund) is an HKSTP-created fund that gives early-stage Hong Kong technology startups a chance to fully develop their ideas and create revolutionary new tech products and services.

Kenetic Capital

The Venture Capital team invests in equity of Series A / B Blockchain Technology companies.

Koala Fund 考拉基金

考拉基金是2015年由拉卡拉创始人、董事长孙陶然先生发起创立，并由专业投资团队管理的市场化风险投资基金。在管基金规模超过20亿元人民币。重点关注拥有巨大市场潜力的早期和成长早期项目，主要投资领域包括：大数据和人工智能、金融创新和企业服务。

LFX

LFX is an offshoot of Li & Fung, the world’s leading orchestrator of one of the most extensive supply chain networks.

Building on our insights into the supply chain, LFX was founded to create digital ventures that will transform the supply chain and retail industries. LFX is building a global ecosystem of entrepreneurs, technologists, and supply chain stakeholders who innovate and put great ideas into action, collaborating with these stakeholders to build an agnostic platform of digital supply chain and retail transformation solutions.

Lightspeed China Partners

Lightspeed China Partners is a leading Chinese venture capital firm focusing on early-stage investments. Their investment focuses are consumer Internet, Internet+, enterprise services and deep tech. They manage five USD funds and one RMB fund.

LQ Pacific

Companies operating under LQP Group include regulated entities in Hong Kong and Mainland China licensed for advisory and asset management. LQP Group offers private equity financing and advisory services globally to selective growth and late stage disruptive technology companies, including merger and acquisition, fund raising and IPO advisory services, and liquidity solutions for private companies.

Ping An Global Voyager Fund

Ping An Voyager Partners, LP, is a growth stage venture fund that will make investments in fintech, healthtech and related businesses around the world. Targeted at institutional investors, Voyager Partners has secured approximately US$200 million in commitments toward its planned US$475 million offering.

QBN Capital

QBN Capital invests across Asia and Europe to build companies with global ambitions. They look for highly scalable technology that can disrupt a significant market, with their primary focus on Series A-B FinTech and DeepTech with commercial traction.

Raffles Family Office

Raffles Family Office (RFO) is an award-winning multi-family office with a comprehensive suite of services for ultra-high-net-worth individuals and families. As an integrated platform that encompasses independence, advisory expertise and a vast network of top financial institutions, RFO delivers bespoke wealth preservation solutions and build lasting family, investment, and operational governance structures for families. Headquartered in Hong Kong, RFO has a presence in other locations across Asia, including mainland China, Taiwan and Singapore.

RGAX

Change in life and health insurance continues to build momentum, propelled by advances in technology, data analytics, and an improved understanding of human behavior. RGAX’s mission is to partner with carriers and organizations both inside and outside the insurance industry to harness this change and advance transformational capabilities focused on helping people everywhere live longer, healthier, more financially secure lives.

SC Ventures

SC Ventures is a platform and a catalyst for Standard Chartered to promote innovation, invest in disruptive financial technology and explore alternative business models. Focused on “Rewiring the DNA in banking”, SC Ventures leverages on human-centric design, lean start-up approach and fintech enablement, while nurturing an intrapreneurial culture by empowering people to take initiative. SC Ventures delivers forward-thinking innovations through an open platform and a network of people and partnerships.

SOSV

SOSV is a multi-stage venture capital investor. SOSV runs multiple world-class vertical accelerator programs, and provides seed, venture and growth stage follow-on investment into superstar companies. SOSV's unique full-stack model has delivered a net IRR over the last 20 years that puts us in the top 10% of all venture funds worldwide.

Token Bay Capital

Token Bay Capital is an early-stage venture fund based in Hong Kong focused on identifying niche investment opportunities in the digital assets and blockchain space in Asia Pacific.

Vectr Ventures

Vectr is a global early-stage venture studio based in hong kong that combines capital, creation and partnership to deliver game-changing impact. Vectr strives to be the ideal partner for founders that are building transformational products and looking to expand their businesses into Asia.

Trustar Capital (CITIC Capital)

Founded in 2002, CITIC Capital Holdings Limited ("CITIC Capital") is a global alternative investment management and advisory company. Core businesses include Private Equity, Real Estate, Structured Investment and Finance, Special Situations, and Asset Management. The firm combines a deep knowledge of the Chinese business and financial markets with world-class investment expertise to create and maximize value for its investors.

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