The Ultimate Guide to Start-Up Business Funding for Tech Entrepreneurs in Hong Kong
Venturing into a tech business in HongKong is often more critical than other businesses, especially in getting funding. It is the biggest challenge that most entrepreneurs in this field are facing. Though there is a lot of funding available, knowing how to get it is important in the said field as Hong Kong is considered as one of the largest global business hub. Thus, in order for the tech business to be recognized, they need to be better than other competitors. That is the reason that you need a strong financial back up. You need to create better products that most of the market can benefit long term especially if you are a start up business funding – you need to stand out to achieve your desired goals.
This guide explores multiple funding sources that help tech startups thrive.
Why Funding Is Essential for Tech Startups
Funding is essential for Tech Start-ups because of the cost of doing the said business. The basic expenses like the rent, salaries and technology upgrades – the funding is needed to support and focus more on innovation in order for the start-up business to be recognized and competitive enough to the market. Creating products will require research, plan, trial and error and that every bit of it entails expenses; this is why funding is important in the tech industry.
Government and an Institutional Fund
Hong Kong has funding to assist in technology and innovations. These fundings are:
HKSTP Funds
(HKSTP) or Hong Kong Science and Technology Parks Corporation is a funding program that provides different solutions or funding initiatives for start-up businesses and it depends on different stages such as Ideation Programme for beginners, Incubation Programme for mentoring and networking opportunities, Acceleration Programme for expansion and Technology Voucher Program for small medium enterprises that are promoting tech solutions to enhance productivity. These types of fundings not only provide financial support but also provide access to research facilities, co-working spaces and a good number of industry connections.
Innovation and Technology Fund (ITF)
This is a type of funding that encourages companies to improve or upgrade their tech tools and introduce new innovative methods through funding schemes. This funding can help a company better fund its digital resources especially those that are first time in the tech field.
Venture Capital and Angel Investors
For startups seeking equity investment, venture capital firms (VCs) and angel investors specializing in tech startups. These are some of the investors: Hong Kong X Technology Fund it focuses on early-stage tech startups. Horizons Ventures, invests in disruptive technology companies and Gobi Partners, which provides funding for startups in the Greater Bay Area.
Getting investors requires a competitive business plan, market strategy and revenue model. Business entrepreneurs in this field should prepare to show their products, value proposition, potential growth in the market and financial projections.
Startup Competitions
There are funding companies that initiate competitions to attract further business opportunities such as HKSTP’s Elevator Pitch Competition (EPiC), Cyberport Incubation Programme, and Alibaba Entrepreneurs Fund. The winners are provided with mentorship for their kind of program as they chose.
Other Sources
Other sources like crowdfunding and startup accelerators are also funding sources for tech start-ups. They usually offer Equity Crowdfunding, Reward-Based Crowdfunding and Startup Accelerators.
Conclusion
Funding is one the primary things that the tech start-up should consider without it might lead the business to failure. With this kind of funding, there will be so much that can be done for companies who are willing to venture and maximize their resources.
