Unveiling HKSTP’s latest measures to support startups

The saying “Money can’t buy you happiness” may be true for the average person, but as a business owner, cash sure can buy you many useful things.

That’s why on April 7 this year, the Hong Kong Science and Technology Parks Corporation (HKSTP) launched its latest initiative, a new fund for its Co-Acceleration Programme. This aims to support startups’ growth through offering capital, mentorship, and opportunities to test their solutions.

“We’ve always believed that innovation and technology are a key pillar of Hong Kong’s future prosperity,” said Paul Chan, financial secretary of Hong Kong, at the fund’s launch ceremony.

(Center) Paul Chan, financial secretary of Hong Kong / Photo credit: HKSTP

It’s a significant milestone for the territory’s innovation efforts and its tech industry, as the program marks the first public-private partnership in the sector.

It involves big names such as Cathay Technologies, a subsidiary of the Cathay Pacific airline; Fook Man Development, a subsidiary of construction firm Dongguan Communications Investment Group; Hangzhou Industrial Investment Group, a rubber products manufacturer; and Zhejiang Communications Investment Group, which provides transportation support services.

Together with these partners, HKSTP will co-invest in and mentor startups in the following areas: generative AI, intelligent connected systems, and sustainability.

“By bringing these significant partners into our ecosystem, HKSTP is expanding its influence by blending capital, business expertise, and global market access,” says Sunny Chai, chairman of HKSTP.

Meeting of the minds

One of the key reasons for executing this initiative as a public-private partnership is to tap into the corporations’ expertise and resources, giving startups the opportunity to test out their proofs-of-concept in real scenarios.

“When selecting partners, we ensure that they are not only looking to make profits through investments, but more importantly, that they can bring in substantial industry value and resources during the growth phase of tech companies,” said Derek Chim, head of startup ecosystem and development at HKSTP, during a media briefing.

On the flipside, these large companies would get access to cutting-edge tech that can help them further their strategic goals, whether it’s in incorporating generative AI capabilities, developing intelligent connected systems solutions, or sustainability.

“We’re looking to have a better understanding and dialogue with all the participating startups so that we can fully understand the tech they offer and then match that with our business needs,” says Navin Chellaram, CEO of Cathay Technologies, a subsidiary of Cathay Pacific meant to bring in innovation and digital products to the airline.

(Right) Navin Chellaram, CEO of Cathay Technologies / Photo credit: HKSTP

This is something that Chellaram is excited about, given that Cathay has had a positive experience with similar efforts in the past.

For example, Cathay Technologies has worked with Fano Labs, an AI communications solutions provider based in the Hong Kong Science Park campus, to develop a chatbot that can respond to Cathay Pacific customers’ queries.

“We expect that there will be many opportunities to work with startups to support our strategic focus areas, such as sustainability and operational excellence. For example, one HKSTP startup turns organic food waste into materials that can be substituted for plastics,” Chellaram shares.

Naturally, these opportunities can benefit startups too, as they can get guidance from experienced business leaders and additional exposure to test their products.

“Hopefully with initiatives like this, we can help put some of the more successful startups onto the world stage,” the CEO adds.

Well underway

Under the Co-acceleration Programme, HKSTP and its private sector partners will support more than 70 companies. One such company is FCC Analytics, which provides anti-money laundering compliance solutions to firms in the financial sector.

For the startup, joining the program was an opportunity to develop and expand its AI solutions for fighting financial crime. It’s also looking to tap into the program’s ability to access funding from investors and support from strategic partners so that it can scale its solutions even further.

“Though it’s still early days in the program, we’ve already gained visibility and recognition for our innovative use of anti-money laundering tech,” says Wallace Chow, founder and CEO of FCC Analytics. “We see this program as a valuable opportunity to showcase our tech, increase efficiency, and attract further investment.”

(From left) Alan Leung, China tech lead of TG0; Aldric Chau, general manager of Cathay’s digital team; Derek Chim, head of startup ecosystem and development at HKSTP; Wallace Chow, founder and CEO of FCC Analytics; and Vanham Fan, co-founder, general manager, and CEO of Janaenergy Technology / Photo credit: HKSTP

Apart from FCC Analytics, other startups in the program include TG0, which develops interactive surfaces for users to control machinery, as well as Janaenergy Technology, a sodium-ion battery company.

“We believe that with the support of HKSTP, we can accelerate our development, gain more investment opportunities, and drive innovative tech even faster,” said Alan Leung, China tech lead of TG0, at a recent media event.

This joint program and its combined public-private efforts will also be enhanced with the launch of Arena, a platform for HKSTP to showcase 23 hand-picked startups.

These companies will be selected based on their potential for growth and ability to gain market share locally and overseas. Each of these firms will be under one of the following categories: AI, digital transformation, sustainable materials and tech, advanced electronics and robotics, as well as life and health tech.

Some of the solutions displayed by companies in the Arena platform / Photo credit: HKSTP

Under the Arena platform, more than 1,000 investors and corporate partners can directly access HKSTP’s startup ecosystem, opening up opportunities for potential collaborations or investment deals.

“By showcasing these companies’ innovative technologies through Arena, we hope to gain the confidence of businesses and investors and subsequently, provide targeted support for startups,” said HKSTP’s Chim.

The future is bright

With these shiny new support ecosystems in place, the future of startups in Hong Kong is looking bright. But even with such a strong starting point, HKSTP is not done with the fund and program just yet.

According to Chim, the organization is still on the lookout for even more partners, focusing on those who can drive strategic value.

We’ve always believed that innovation and technology are a key pillar of Hong Kong’s future prosperity

In the meantime, many of its partners have also expressed their confidence in HKSTP to run the program collaboratively, with the ultimate goal of serving Hong Kong startups and taking them to the next level.

“We have full confidence in their ability to choose which startups to invest in and help drive innovation to contribute to Hong Kong’s development as an information and technology hub,” says Cathay Technologies’ Chellaram.

As one of the largest innovation and technology ecosystems in Hong Kong, HKSTP is home to over 2,200 technology companies and aims to develop Hong Kong into an international hub for innovation. The organization is committed to building a world-leading microelectronics ecosystem. To get in touch with HKSTP, click here

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