All about Hong-Kong business angels
Hong Kong administration uses every effort in supporting businesses for higher tax returns. As a business economy, no effort is spared in ensuring that all businesses blossom and generate higher tax substance. For investors, the route to the top is never easy.
From funding to training requirements, entrepreneurs often find it difficult to maintain a smooth growth trajectory. However, there are established government and private support programs that can support your enterprise to steer faster growth and success. This is a summary of these support initiatives and how a startup can take advantage of them.
Business funding initiatives for startups
Business funding initiatives are conceived to help startups raise the necessary cash for supporting their work. Often, the process of incubating ideas and early stages of marketing require a lot of cash that beginners do not have. By providing the required funding and leadership support, many startups can look beyond the incubation stage and focus on growth that ultimately makes them big multinationals.
This is a very dedicated agency that operates under the Hong Kong Commerce and Economic Development Bureau. The focus of the agency is ensuring that the Hong Kong economy remains creative at all levels to spur growth. As a government agency, it is involved in policy formulation as well as implementation to ensure that all the potential initiatives are identified and funded appropriately.
To realize this important mandate, the CreateHK agency works with private establishments to ensure that every venture with a potential to stir growth is anchored in law. If your firm is in the creative sector, make sure to check whether it fits in the CreateHK requirements for financial support.
Hong Kong is led by a very ambitious administration that will go to any length to ensure that startups in the tech sector are properly supported. The program targets to nurture the ICT industry to form the next baseline for economic growth in Hong Kong. This can be realized via a strategic partnership with different companies such as Alibaba that inject cash towards specific tech initiatives. It is important to carefully review your company operations to see whether they fit the jurisdiction of the Cyberport program.
The Hong Kong Angel Investment Network
This network is built on the basis of identifying entrepreneurs with potential, and that require support. The network targets funding enterprises to spur growth and help businesses overcome the obstacles that lay on the way.
To the Hong Kong Angel Investment Network, a good enterprise should be supported because it is the main stepping stone to taking the economy to the next level. Because of this focus, the support goes beyond providing monetary support to enhancing capacity for progressive growth. From the startup leadership to general management, nothing is left behind to ensure that the supported enterprise will cruise to success.
Bright Seeds Capital
If your business is built on a very good idea and its future is very potential, Bright Seeds Capital will always be there to help it realize its main objectives. The focus of Bright Success cuts across all areas of an enterprise operations. They are particularly emphatic on the leadership because it is the central pillar that guides a startup to success. Besides, they focus on building capacity in marketing to ensure that the startup can take the services/products to the Hong Kong and international market.
Though the main focus of Bright Seeds Capital is Internet of Things, Internet security, technology enablers, and services, you can also reach them for direct support in normal business operations. They assess the business operations to establish the gaps and help to fill them for faster growth. The moment you start working with the Bright Seeds Capital, rest assured of a smooth road because they cater for the finances so that all the inventions can be fully refined and successful.
One of the main methods of getting funding for a startup is the use of initial public offering. However, as the company grows, it needs ample capitation for marketing, product development, and research. This is where Mind Fund comes in. The fund helps potential startups to raise funds and operate profitably until they go public through initial public offing.
Therefore, enterprises that get funding from Mind Fund should consider the association as a journey towards getting listed publicly. At this point, raising large sums of cash for expansion in Hong Kong and the rest of the world will be easy.
Programs funding creativity and design applications
Designing new products and services in the tech sector can be complex. Often, entrepreneurs might get consumed in the process and fail to come up with the right operational model. For example, it is possible for an app designer to fail to appreciate the marketing dynamics of the Hong Kong market. If the startup is not supported well, it could easily fizzle out.
Therefore, the programs that fund creativity seek to identify these initiatives at the earliest possible stages and ensure they are supported to full application. Some of these funding programs for creativity and designs include;
This initiative targets the creative industry and seeks to speed the development of creative industries especially in Hong Kong and the Far East. To participate in the initiative, the applicant must be a registered entity such as a limited liability company or research institution. Other types of formations that can also apply include professional bodies, academic institutions, and trade groups.
The initiative does not have any limitation on the amount it can fund. Once you are qualified for the initiative’s support, the funding is given as a grant and released in phases. This makes it easy for the initiative to follow and inspect the progress of the selected initiative. The initiative further targets to spur creativity among the startups so that they can get similar support. This is the trend that will help to spur an innovative based Hong Kong economy.
The design business collaboration scheme
This is one of the most inclusive initiatives because it targets all the industries. The main objective of the program is spurring interest in the small to medium enterprises by demonstrating that they can follow the right path to become big multinationals.
By identifying the right deliverables, using appropriate leadership models, and intellectual property rights, any startup can grow and reach maximum potential. The scheme ensures that investors can identify their establishment’s strengths and exploit them fully at all levels to win a competitive advantage over other operators in the market.
To qualify for this funding, you have to be a registered entity such as a limited liability company, a research institution, or an SME. Unlike other funding programs, the design business collaboration scheme financing is limited to $100,000.
Funding opportunities in environmental management
Over the last seven decades, concerns about the environment have grown tremendously. The realization that the globe has finite resources made have more governments, companies, and even private entities to start seeking solutions to major environmental problems with an objective of making the globe a better place. Therefore, if your startup or initiative is in environmental management and conservation, the following funding opportunities will be available;
The Carbon Audit Pilot Fund
The target of this fund includes companies and startups in the export, wholesale, insurance, business services, and even financing. Other establishments that are eligible include logistics, hotels and catering, engineering, and communication.
The main objective of the initiative is to encourage startup companies to focus on areas of environmental management. By supporting companies to reduce their carbon footprints with related products such as filters in automobiles or industries, your company can apply for the funding. Note that even startups in areas that are not related to environmental conservation can still apply if they have good initiatives that are helping to cut on emissions.
Though the funding is provided on a matching basis, there is a cap on the maximum that a single company can get. For every application, the maximum that your enterprise can get is HK$30,000. However, you can even make later application to support other initiatives in the same company.
The cleaner production Partnership program
The main target of this program is companies in the chemical and food production niches. Also, those in the furniture industry, engineering, and beverage sectors can apply.
The key goal of the program is to promote cleaner production in production chains. By adopting the relevant technologies, companies do not just reduce emissions to make the environment clean, but also help to raise efficiency by a great margin.
Your startup should apply for funds and Visa to help acquire better technology for water consumption reduction or minimize the air pollutants emissions. To get this funding, it is important to demonstrate vividly the implications of cleaner production in the facility and outside.
Applicants are required to be registered companies operating facilities in Hong Kong. Besides, rigorous on-site assessments are done on the facilities to ensure that the funds will have the maximum possible impact in making Hong Kong cleaner, safer, and a better place for doing business.
Research and development opportunities
Perhaps research and development are the most expensive undertakings that many businesses are reluctant to undertake. Despite the immense potential that research and development hold, lack of funding can hamper its success. Many new companies might prefer to commit more funds to marketing while relegating R&D. However, this could mean that the fire of innovation might ebb out soon and make the company to start declining.
To help companies and businesses maintain their focus on research, the following funding opportunities are available.
Enterprise support scheme (ESS)
This funding is targeted at the technology industry and is provided under the Innovation and Technology fund (TIF). The main objective of the funding is encouraging investors to focus more on research and development. Hong Kong administration holds the view that anything that can keep the innovative and creative sector vibrant should be supported. It is through R&D that new technologies and innovations will be discovered to help take the Hong Kong economy to the next level.
The funding program has a cap of HK $10 million that is provided as a grant on a matching basis. The project should also not exceed a period of two years, and the respective recipient company must have exclusive intellectual property rights for the resulting product after the project is over.
To be eligible for the funding, the applicant must be a limited liability company incorporated in Hong Kong. Besides, it must not be a subsidiary of any government organ. However, you must meet the set criteria of the specific project that is being funded for research and development.
Innovation and technology support program
Though this program targets those in the tech industry, the application is relatively broad and covers more industries. The training, in this case, is specific because the program demands that the recipient of the funds must go to a public research institute such as the Vocational Training Council, the local universities, The Hong Kong Productivity Council, Or Hong Kong Institute of Biotechnology.
To be eligible, you must have a company registered in Hong Kong under the Companies Ordinance and has a good connection to Hong Kong. It must also prove its tax substance before any funds can be released. The applicants are, therefore, required to ensure their operations are carefully defined before applying for the funds.
The research end development rebate program
The main aim of this program is fostering a culture of cooperation between private and public institutions. In many cases, the private entities are vibrant in their innovation because of less bureaucracy while the public firms lag behind. The funds are, therefore, meant to promote research that fosters stronger partnership.
The selected company gets a rebate of up to 30% on associated expenditure. By promoting the flow of research and technology between institutions, Hong Kong can march forward as a unit. The funding is restricted to specific research institutions in Hong Kong.