The Corporate Venture Fund (CVF) is an HKSTP-created fund that gives early-stage Hong Kong technology startups a chance to fully develop their ideas and create revolutionary new tech products and services.
At HKSTP, we want to turn creative inspirations into outstanding ideas.
And sometimes, our partner companies may simply have an initial concept.
However, a concept itself has the potential to change the world.
We recognised the need to foster and nurture these early-stage technology startups, so our local talent can have the opportunity to bring changes on a global scale.
Created for this sole purpose, CVF combines HKSTP’s resources with those of investors in the private sector to foster and nurture early-stage technology startups and give local talent the opportunity to bring changes on a global scale.
CVF serves dual purposes:
- Facilitate high-potential early-stage technology companies in raising seed to Series A funding.
- Expand Hong Kong’s startup ecosystem by encouraging more private funding or angel investment from angel investors and venture capitalists.
All investment returns will be injected back into the CVF to fund other early-stage Hong Kong technology startups.
The Investment Committee oversees the CVF, and makes investment decisions after a thorough assessment of the following criteria:
- A full business assessment
- Potential future growth and return on investment
- The capabilities of the co-investor(s)
The CVF's absolute maximum investment per case is HK$8 million.
To ensure that the CVF's funds are efficiently managed, the CVF can:
- Only invest if there's also a third-party co-investor(s)
- Invest up to the same amount as being invested by the co-investor(s)
- Hold less than 20% of the equity of the startup
The investment will be on the same terms and valuations as that received by the co-investor.
The procedures for CVF investment are similar to those of a VC or Angel Investment fund:
- Receipt of Teaser and Business Plan
- Preliminary Due Diligence
- Negotiation of Terms
- Investment Committee Decision
- Detailed/Confirmatory Due Diligence
- Finalise Definitive Documentation
To offer tech startups maximum flexibility, they can identify a co-investor before submitting an application to the CVF, or work together with HKSTP and explore our extensive networks to find an ideal co-investor.
The CVF is earmarked for Seed Stage up to Series A funding rounds, and eligible early-stage Hong Kong-registered technology startups include:
- HKSTP Incubatees
- Incubation Programme graduates
- Current Science Park tenants