Hong Kong: a fertile ground for global startup growth

Summary:

• Hong Kong’s success as a startup ecosystem can be attributed to its unique position as a global gateway and strong institutional backing.
• The city prioritizes investment and development in high-potential areas such as AI, fintech, digital assets, health sciences, and climate and energy solutions.
• HSBC Innovation Banking offers a global platform with comprehensive transaction banking and financing solutions. It also facilitates collaborations with innovation ecosystem players, and supports initiatives like the EPIC startup competition to foster startup growth.
• Unlock EPIC opportunities by signing up for this year’s edition of the event.

If you turned back the clock to 1945, you’d be hard-pressed to recognize Hong Kong. Back then, it was a tiny bombed-out port on the edge of the Pearl River Delta, offering no signs that it would eventually become the global financial powerhouse that we know today.

And yet transform it did, building on the strengths of its shipping and maritime industries to become a regional manufacturing hub and a heart of Asian Pacific wealth.

Photo credit: Guitar photographer / Shutterstock

Now, the city is undergoing yet another evolution, becoming the center of a thriving startup ecosystem.

In 2025, Hong Kong was named Startup Genome’s 27th best global startup ecosystem, leaping 20 spots up the list from the previous year. The city registered 4,694 companies in 2024 – a record high that could herald the arrival of a new age of innovation.

“Hong Kong is a strategic gateway, and we’re seeing many startups globally look to the city as a base to build infrastructure across the Greater Bay Area,” says Jonathan Yip, managing director and head of innovation banking for Asia, at HSBC.

Its potent combination of financial acumen, government support, and global connections have made the city fertile ground for innovation, and HSBC plays a key role as an enabler and champion of startups in and beyond Hong Kong.

Focus on AI, fintech, and climate

In Yip’s view, startup investment is still running hot despite today’s economic headwinds.

“The market estimates that there’s roughly US$300 billion deployed by global venture capital every year,” he says. “Investors aren’t holding back, and there continues to be a lot of money channeled into startups building businesses for tomorrow.”

Jonathan Yip, managing director and head of innovation banking for Asia at HSBC / Photo credit: HKSTP

Much of this funding flows into major hubs like Silicon Valley, London, and Hong Kong, as well as key segments such as AI and automation.

Aside from AI, fintech and digital assets are also seen as core growth areas. The same goes for health and life sciences – themes that align with society’s focus on aging populations and affordable healthcare.

Another focus is energy and climate solutions, which Yip says are important given Asia Pacific’s surging demand for affordable and reliable power.

Its openness and adaptability make Hong Kong an exciting place for these solutions to thrive.

“Hong Kong has a history of embracing the new,” says Hilda Chan, chief marketing officer at the Hong Kong Science and Technology Parks Corporation (HKSTP), a public entity set up by the government to transform the city into an innovation hotbed. “Its people are always resilient and ready for anything thrown their way,”

Gateway to the world

What’s driving the growth of Hong Kong’s startup ecosystem?

For Yip, what makes the city stand out is its massive connector market for not just investors looking to tap into the China opportunity, but also for mainland firms looking to take their technologies and solutions abroad.

Hilda Chan, chief marketing officer at HKSTP / Photo credit: HKSTP

“Hong Kong’s legal system, low tax structure, sophisticated investor base, and blend of Eastern and Western influences … have allowed it to solve global problems and tap into global opportunities across any sector,” he says.

Another big factor are enablers such as HSBC, an institution with a storied 160-year legacy in Hong Kong.

“We’ve been supporting entrepreneurs and businesses at various stages of growth for decades and generations,” says Yip. “At the core of our philosophy is that innovation is the art of turning great ideas into real solutions that create value.”

As part of that philosophy, HSBC established its Innovation Banking proposition in 2023 with the specific goal of addressing the unique needs of high-growth startups through its global platform.

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Different cross-border regulations or market requirements can make accessing financial services tricky for startups, especially if they have complex ownership structures.

“That can create a lot of friction as startups look to expand overseas or get plugged into an economic system,” explains Yip.

To help its portfolio companies navigate these challenges, HSBC Innovation Banking leverages its connections in Hong Kong’s startup ecosystem, as it did in the case of one of its China-based portfolio companies. HSBC brought together well-established infrastructure to help the startup – a fast-growing female fashion brand and ecommerce platform – quickly set up an account and corporate treasury center in Hong Kong.

“Our holistic solution enabled the startup to centralise its financial functions and manage risks more effectively,” he adds. Meanwhile, HSBC’s cash management and FX solutions allowed the startup to gain a foothold in other markets like the US and Singapore.

“We make it simple for startups to access banking services in the key markets we operate in,” says Yip.

An EPIC connector

While funding is a central concern for growing startups, getting access to the right connections can be equally – if not more – important for enabling companies to scale abroad.

Photo credit: lentamart / Shutterstock

That’s why another aspect of HSBC Innovation Banking’s offerings includes a significant ecosystem and networking component. According to Yip, founders can tap into the bank’s vast global network of partners to help them access the resources they need to thrive, whether that’s financing, talent, or relationships with key stakeholders.

“Fundamentally, what we’re trying to do is to bring the entire bank –not just basic services but HSBC’s entire network – to the community of people who are building and investing for the future.”

Yip shares that the bank regularly engages in conversation with founders to better understand their needs and goals.

“Many of them want to go overseas, so we talk to them about how we can help them monetize that global opportunity,” he says. “We’re happy to introduce them to new partners that we know across the ecosystem.”

A platform to grow globally

HSBC Innovation Banking’s support extends to staging events such as the annual EPIC startup pitching competition. The event’s name stands for “Elevator Pitch International Competition.”

Since its inaugural edition in 2017, EPIC has provided a global platform for startups to directly connect with investors and partners in Hong Kong and the Greater Bay Area. The 2025 edition is set to take place in early November at the Kai Tak Cruise Terminal, a historic airport located in the heart of the city.

HSBC Innovation Banking participates in EPIC through the bank’s long-time partnership with HKSTP.

Photo credit: maroke / Shutterstock

Events like EPIC play a massive role in unearthing “hidden gems” with the potential to become global giants within the next decade, such as Tozero, a sustainability-focused German startup that developed a battery recycling solution to recover critical minerals. In 2023, Hong Kong startup Skyland Innovation won the grand prize for its real-time 3D modelling technology.

Yip emphasizes the significance of partnerships, such as the one between HSBC and HKSTP, in driving Hong Kong’s innovation economy.

“We’ve partnered with HKSTP for many years,” notes Yip. “They’ve got a very structured framework for supporting startups in their growth journey and plenty of connections.”

“HKSTP has done a great job over the last decade in progressing Hong Kong, and together with like-minded partners, we are committed to building a brighter future.”

EPIC is one of Hong Kong’s largest platforms for startups to scale and connect with the investors or partners they need to expand globally. Held in Hong Kong, the event is organized by the Hong Kong Science and Technology Park Corporation (HKSTP).

To learn more about EPIC and how you can sign up to join, click on this link.

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This content was produced by Tech in Asia Studios, which connects brands with Asia’s tech community. Learn more about partnering with Tech in Asia Studios.