Hong Kong aims to encourage VC investment in local startups with a government funding of HK$2 billion (US$254 million) through the commission

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Hong Kong’s Innovation and Technology Commission on Tuesday announced the first round of five venture capital (VC) funds that have been selected as co-investment partners for Innovation and Technology Venture Fund (ITVF).

The five funds are:

  • Beyond Ventures I Fund LP, managed by Beyond I Capital Ltd
  • BVCF IV LP, managed by BVCF IV GP, Ltd
  • Hendale Fund, LP, managed by Hendale GP Ltd
  • MindWorks Ventures Fund 3 SPC, managed by MindWorks Ventures Investment Management (Cayman)
  • X Technology Fund, LP, managed by X Tech Holdings Ltd

ITVF aims to encourage VC investment in local startups with a government funding of HK$2 billion (US$254 million).

The co-investment partners are responsible for identifying investment targets, conducting due diligence, and making investment proposals to the Government.

Also Read: Hong Kong’s central bank rolls out blockchain-based trade finance

The government will co-invest at an investment ratio of about 1:2. The maximum aggregate government investment with each partner is HK$400 million (US$50.9 million) and the maximum aggregate government investment in each of the startups is HK$50 million (US$6.3 million).

From September 2017 to January 2018, the Hong Kong government invited VC industry players to join as partners, and has received applications from 14 funds. The funds were selected based on fund’s capabilities, management team’s expertise, and adequacy of local resources and knowledge.

“We are very pleased to have these five VC funds co-invest with the ITVF in local innovation and technology startups. In addition to obtaining new capital, start-ups will benefit from our investment partners’ guidance on operation strategies and extensive business networks,” said Secretary for Innovation and Technology Nicholas W. Yang.

e27 has reached out to co-investment partners to find out more details about their plans following the selection.

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Image Credit: Brandon Wong on Unsplash

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