Weakest link in Hong Kong’s tech ecosystem? Scale-up funding

With venture capital and IPO growth weak globally, start-ups should aggressively seek international commercialisation, leverage marketing strategies and connect with power players overseas

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The absence of a robust series of funding escalators – from Series A to C, leading to trade sales or IPOs – risks producing numerous start-ups with innovative ideas but lacking commercially viable products. Photo: Shutterstock

Scott ChengandDavid Ketchum

Published: 4:30pm, 24 Dec 2024

Hong Kong has made significant strides since the establishment of Cyberport and Hong Kong Science Park decades ago, which have since evolved to become vital incubators for innovative start-ups. Early tenants such as logistics group GogoX (formerly GoGoVan), AI pioneer company SenseTime and blockchain video-gaming firm Animoca Brands have become strong players in their fields.

The Global Innovation Index by the World Intellectual Property Organisation (WIPO) ranks Hong Kong fifth in Asia and 18th globally. The ambitious remaking of Hong Kong as the Silicon Valley of Asia remains a work in progress. While many success factors are present, elements of the information technology value chain still need to develop and interconnect.

Silicon Valley serves as a model for driving innovation value, characterised by several key factors: strong ties with world-class research universities, government support through contracts and subsidies, a critical mass of leading companies, access to growth capital, and opportunities for acquisitions and initial public offerings (IPOs). How does Hong Kong compare?