[Startup Funding] When local entrepreneurs look for startup funding, they can consider government funding schemes, NGO startup funds, first-time business startup loans, etc. Do you want to get some funding to pursue your startup dream? Below is a list of 13 government funds, startup funds and business expansion grants that you can apply for, so you can find out which Hong Kong startup funds are the most suitable for you and how you can apply for them.
If you have a plan to start a business, it's not enough to have an idea and enthusiasm – you also need to develop a sound business plan and budget for the expenses. First of all, there are necessary expenses for starting a business, including trade licences and company registration fees. According to Companies Registry, the fee for registering a company limited by shares is HK$1,720 (for hardcopy delivery) or HK$1,545 (for electronic delivery), and you'll also need to pay HK$2,200 for a Business Registration Certificate (BR) starting from 1 Apr 2024.
On top of that, you'll need to take into account the manpower expenses, including recruiting staff, paying for workers' compensation insurance and Mandatory Provident Fund (MPF). There are also expenses for shop or office rent, equipment, production costs, purchasing costs, inventory, and so on. Once you are in business, you will need to consider promotional and advertising costs to help attract customers, increase awareness and maintain the company's financial viability.
To better manage your startup capital, you can use the Budget Analysis Worksheet provided by the government to calculate your expected expenses, which will help you set a reasonable budget and calculate the time and ways of breaking even.
Capital is the first issue of starting up a business. When there is insufficient capital, there are a number of ways to raise a start-up fund. In Hong Kong, there are many start-up funds that are suitable for new businesses, including government-initiated start-up funds, start-up funds provided by non-governmental organisations (NGOs), as well as industry-specific grants and incubation programmes. Depending on your business needs and funding requirements, you can study the following 13 start-up funds and incubation programmes to find the best way to raise start-up capital.
*The above information is for reference only. Please refer to the official websites of respective schemes for the latest information.
Innovation and Technology Venture Fund (ITVF)
Funding amount:
1. Aggregate amount of investments not more than HK$50 million for each investee
2. 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.
Eligibility:
1. Hong Kong company incorporated within the last 7 years
2. engaging in I&T business
3. with fewer than 250 employees
Application procedures:
1. Startups shall contact potential co-investment partners for investment opportunities
2. Upon receipt of a CP's co-investment proposal, the ITVF Secretariat will conduct evaluation in consultation with the ITVF Advisory Committee according to the assessment framework.
Innovation and Technology Fund for Better Living (FBL)
Offered by the Innovation and Technology Commission, the scheme aims to assist startup projects that can benefit the society; project themes include daily living, education, environment, health, safety, transport, etc. Projects should involve the innovative application of technologies, and the project deliverables should be developed and rolled out within 1 year. Funding amount:
1. An approved project will receive a grant up to 90% of the total eligible costs of the project or HK$5 million, whichever is the less
Eligibility:
1. Non-governmental organisations receiving subvention from the Social Welfare Department
2. Public bodies under Section 2 of the Prevention of Bribery Ordinance (Cap. 201), except the Government Bureaux/Departments, the Executive Council and the Legislative Council
3. Professional bodies
4. Trade associations
5. Social service organisations exempted from tax under Section 88 of the Inland Revenue Ordinance (Cap. 112)
Application procedures:
1. Apply through the online FBL management system
HKSTP Venture Fund
The scheme is offered by Hong Kong Science and Technology Park and focuses on providing financial support to promising startups that demonstrate high growth potential and innovative ideas. The investment fund totalled HK$1 billion.
Funding amount:
not stated
Eligibility:
technology startup which is in early to growth stage
Application procedures:
applicants shall email to capital@hkstp.org and contact HKSTP
Cyberport Creative Micro Fund (CCMF)
Through 4 sub-programmes, Cyberport provides funds to support the development of digital innovative ideas and early-stage startups with potential. Application to Cyberport Incubation Programme after completion of CCMF will be granted priority.
1. Professional Programme
2. Hong Kong Young Entrepreneur Programme
3. Cyberport Greater Bay Area Young Entrepreneurship Programme
4. Cyberport University Partnership Programme
Funding amount:
HK$100,000
Eligibility:
varies for the 4 sub-programmes; refer to respective website for more details
Application procedures:
all 4 sub-programmes accept Individual Application and Company Application; refer to respective website for more details
Patent Application Grant (PAG)
Offered by the Innovation and Technology Commission, PAG aims to encourage local companies and inventors to capitalise their intellectual work through patent registration.
Funding amount:
HK$250,000 or 90% of the sum of the total direct costs of patent application (including the cost for patent search-cum-technical assessment), whichever is the lower.
Eligibility:
1. have never owned any patents in any countries or territories
2. For individual applicants, the applicant must be the sole inventor or one of the joint inventors of the invention
3. For company applicants, the inventor(s) of the invention shall be (a) directly related party/parties to the applicant company
4. All applications for functional patents and inventions with technology elements and susceptible of industrial application are eligible
Application procedures:
The implementation agent of the PAG, the Hong Kong Productivity Council (HKPC), will first conduct a patent search-cum-technical assessment to ensure that there is a reasonable chance of obtaining a patent.
1. Email application: Two copies of the duly completed application form are to be submitted to the implementation agent, HKPC, or the Innovation and Technology Commission (ITC)
2. Mail application: submit your PAG application online through this website
CreateSmart Initiative
Managed by Create Hong Kong under the Culture, Sports and Tourism Bureau, CreateSmart Initiative aims to promote and speed up the development of local creative industries so as to build Hong Kong into Asia's Creative Capital.
Funding amount:
Up to HK$10 million
Eligibility:
An applicant should normally be a locally registered institution/organisation, which include the following: local academic institutes, industry support organisations, trade and industry associations, professional bodies, research institutes and companies.
Application procedures:
Application should be submitted through Create Hong Kong Funding Administration and Information System; each application can only cover 1 project.
Cyberport Incubation Programme
The programme is offered by Cyberport and aims to support entrepreneurs and start-ups with resources that accelerate their growth.
Funding amount:
1. Up to HK$500,000
2. Rent-free working space
Eligibility:
1. Company that is incorporated in Hong Kong less than 7 years upon application deadline
2. The founders of the Applicant collectively (legally and beneficially) must hold at least 51% of the company shares or absolute control.
3. A viable business plan for a product or service to be ready for marketing in 12 to 18 months
Application procedures:
Apply through the Entrepreneurship Management System
*The above information is for reference only. Please refer to the official websites of respective schemes for the latest information.
Design Incubation Programme (DIP)
The programme is provided by Hong Kong Design Centre and aims to help startups from the design industry.
Funding amount:
1. Rent-free office space in the 1st year; subsidised office space for the 2nd year which in total valued at around HK$240,000
2. Financial support of up to HK$280,000 to help with operational, marketing and development costs
Eligibility:
1. Required an office space of less than 350 square feet
2. Must have at least 2 full-time staff that are based in Hong Kong (including the applicant)
3. At least one of the full-time staff must be the major shareholder and must be a designer in a recognised design discipline
4. The aggregate shareholding percentage or interest of the full-time designer(s) must be in majority
Application procedures:
Applicants can apply online or email the completed form and required information to dip@hkdesigncentre.org
Funding Scheme for Youth Entrepreneurship
The scheme was initiated by Po Leung Kuk and co-organised with the Home Affairs Department, Youth Development Commission and We Venture. It provides funding and guidance to entrepreneurs aged 18-40, supporting startup ideas based in Hong Kong or the Greater Bay Area.
Funding amount: up to HK$600,000
Not stated
Eligibility:
1. Feasible startup ideas that can be executed within a year in Hong Kong or GBA cities
2. Startups that have been operating less than 3 years, industries not limited
Alibaba Entrepreneurs Fund
Alibaba Group set up a HK$1 billion fund to invest in promising young companies with breakthrough business and technologies in the start-up. It is divided into AEF HK Fund and AEF GBA Fund.
Funding amount:
Not stated
Eligibility:
1. The majority of founders must be Hong Kong Permanent Residents
2. The business has moved beyond the brainstorming phase and has customers, or a prototype, or a viable product; The company possesses innovative and unique business ideas that are scalable, financially viable and have high potential to grow
3. Sector agnostic, but currently focuses on startups in AI, industry 4.0, consumer goods, fintech, healthcare and sustainability
4. Companies that can utilise resources from the Alibaba ecosystem will be prioritised
Application procedures:
Applicants need to submit their introduction and business proposals on the official website and go through the selection process.
The Mills Fabrica Incubation Programme
Fabrica incubation programme nurtures the next generation of sustainable techstyle startups and entrepreneurs through the fostering of connections, exposure and practical business guidance. It is suitable for techstyle and agrifood tech startups.
Funding amount:
Not stated
Eligibility:
1. Sustainable startups in the agriculture & food, and textiles & apparel industries
2. Startups that have a proven prototype and traction
3. Legal entities registered in Hong Kong or the UK
Application procedures:
1. Email to contact@themillsfabrica.com to invite investment
2. Fill in the application form on the official website
*The above information is for reference only. Please refer to the official websites of respective schemes for the latest information.
Gear Up HKU Startup Seed Fund Incubation Programme
The scheme is established by iDentron HKU Innovation and Entrepreneurship Hub, in collaboration with the Home and Youth Affairs Bureau, The Youth Development Commission and We Venture. Through providing seed funds and incubation support, the programme helps entrepreneurs aged 18-40 to turn their business ideas in Hong Kong or the Greater Bay Area into reality.
Funding amount:
Up to $HK600,000
Eligibility:
1. Aged between 18 and 40
2. have concrete business plans/ideas in Hong Kong and/or Mainland GBA cities within one year
3. have been running their start-ups for not more than three years
Application procedures:
Visit the official website for details and submit an application. After the first round selection, the team will be invited to join a roadshow and compete for the seed fund.
HK Tech 300
HK Tech 300 is a large-scale flagship innovation and entrepreneurship programme organised by City University of Hong Kong (CityU) for aspiring entrepreneurs among CityU students, alumni, research staff and others to launch start-ups and ignite their entrepreneurship journey. The programme aims to create 300 start-ups in three years, providing educational and growth opportunities for CityU students, and translating CityU research results and intellectual properties into practical applications.
Funding amount:
1. Training: 8 weeks of sponsored training
2. Seeding: seed fund of HK$100,000
3. Incubating: angel fund of HK$1,000,000
4. Launching: financial support of up to HK$10,000,000
Eligibility:
1. CityU students, alumni, research staff
2. general public who wishes to use CityU’s Intellectual Property and/or technology in their startups
Application procedures:
Apply through the official application system. Applicants should complete the training and teams which have passed the selection process could apply to enter the seeding stage.
Technology Voucher Scheme
If you want to expand your business after starting up, you can apply for the Technology Voucher Scheme. Administered by the Hong Kong Productivity Council (HKPC), the Technology Voucher Scheme (TVS) is a funding scheme to support local enterprises and organisations in the use of technology-based services and solutions for productivity enhancement and business process upgrading. The scope of funding includes technology consultancy services, customised equipment/hardware, software and purchase, rental or subscription of technology services or solutions.
The maximum number of approved projects for each enterprise is 6 and the maximum cumulative funding ceiling is $600,000. The scheme is open to enterprises and organisations of all sectors, and applications may be considered as long as the projects meet the requirements and objectives of the scheme.
Application for the scheme can be made through the TVS's management system by submitting an application form and the required supporting documents. Eligible applications will be considered by the TVP Committee while ineligible applications will be returned to the applicant. Applications supported by the Committee will be submitted to the Commissioner for Innovation and Technology for approval of funding.
2. KFund financing solution
KFund SME financing solution aims to finance SMEs to swiftly obtain capital, allowing them to manage their cash flow more flexibly and achieve other purposes like strengthening their marketing strategy, upgrading hardware, expanding customer base, developing new product development, purchasing products, etc. This helps the merchants seize business opportunities and expand their businesses.
How does KFund SME financing solutions help with your cash flow management?
1. Opening up a new store
2. Buying advanced machinery, upgrading management software and hardware
3. Developing new products, purchasing products and stocking up
4. Training employees
Benefits of KFund SME financing solutions:
1. Industry agnostic: suitable for most industries and business nature; you can choose the most effective revenue-based financing solutions
2. Simple process: no collateral is required so that you can easily obtain your capital
3. Flexible repayment: flexible and automatic repayment; we will deduct a specific amount from your daily revenue as repayment. You can check the records on your merchant App anywhere anytime
*The application flow, actual time for loan approval and the loan disbursement may vary depending on the information and documents provided by the merchant. Official announcements from partners will supersede this information.
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