Hong Kong’s start-ups gather momentum after SenseTime, GoGoVan and Lalamove
Hong Kong is gradually being recognised as a hub for start-ups, even as entrepreneurs and investors cite a lack of funding and entrenched monopolies as obstacles
Momentum appears to be gathering for Hong Kong entrepreneurs and start-ups, as the city’s technology incubators are begging to make their impact felt, while three early-stage companies raised enough money to increase their valuations to US$1 billion, to reach the so-called unicorn status.
Before the successful fundraising by SenseTime, GoGoVan or Lalamove vaulted into, or close to, the unicorn club, Hong Kong was criticised for being late in embracing the city’s start-ups, compared with mainland China or even other Asian cities.
Singapore had five times as many tech venture capital deals last year than in Hong Kong, according to Pitchbook Data. Hong Kong attracted just over US$1 billion in tech venture capital deals, compared to US$2.2 billion in Singapore.
While a business friendly environment bas been a catalyst for entrepreneurs - it also led to entrenched monopolies, start-up entrepreneurs say, which limit competition and make it difficult for them to make headway.
The city’s government is trying to change that. Chief Executive Carrie Lam Cheng Yuet-ngor outlined major cuts to tax rates amid efforts to expand the innovation and technology sector in her maiden policy speech.“We must develop a high value-added and diversified economy,” she said, adding that Hong Kong had the potential to become the Silicon Valley of Asia.
