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- HKSTP Corporate Venture Fund completes its first investment Incubatee receives HK$3 million
(Hong Kong, 19 February 2016) - Hong Kong Science and Technology Parks Corporation (“HKSTP”) today announced its Corporate Venture Fund (“CVF”) has made its first investment since its establishment. The investment amounting to HK$3 million was provided to Showmuse™, one of HKSTP’s incubatees in Hong Kong Science Park.
In cultivation of a sustainable environment for entrepreneurship, HKSTP set up CVF in May 2015 to encourage angel and institutional investors to provide financial support to high potential start-ups. Since its establishment, a team of professional consultants from CVF has done a lot of groundwork to enable eligible and high potential Park companies to attract investors. The work comprises the identification of these companies and the provision of support in aspects such as strengthening corporate governance, improving corporate structure and integration of financial statements.
Showmuse™ has recently completed its pre-Series A round financing, including HK$3 million through the CVF. The start-up, by combining creativity and innovative technology, revolutionised the way of learning and content sharing. Using renowned lecturers to deliver educational content in a video format, Showmuse™ provides a complete, interactive online-to-offline learning experience to the public. Showmuse™ is committed to widening its users’ horizons and helping them develop their networks so as to improve their lives.
“Many start-ups encounter difficulties in their early stages due to the lack of financial support and guidance. We are grateful for HKSTP in helping us to get the financial support from investors through CVF. HKSTP’s team of professional consultants also gave us valuable advice on our business plan, business model and corporate governance, which has helped us immensely,” said Dennis Cheung, Founder of Showmuse™.
Creating a win-win situation for investors and local technology start-ups
Allen Ma, Chief Executive Officer of HKSTP, said: “As an international financial centre, Hong Kong has sufficient capital, but investment in early stage or Series A funding for start-ups is not so common still. It is because a lot of investors who are interested in investing in start-ups choose to go to the Mainland which has more projects, and tend to overlook the booming innovation and technology ecosystem in Hong Kong. Through Showmuse’s case we are happy to see that we are adopting the right strategy for our incubation programmes and the professional services from CVF are providing start-ups with comprehensive and solid support.”
Details of CVF
CVF is open to over 800 early-stage technology companies including HKSTP’s current incubatees and graduates, as well as Science Park’s partner companies. Since its establishment, CVF has been in discussion with dozens of start-ups from different technology clusters including Electronics, Information & Communications Technology (ICT), Green Technology, Biomedical Technology, Material and Precision Engineering, providing them with advice and support on everything investment related.
To help companies achieve the investment matching requirement of this scheme, investment managers from HKSTP connects start-ups without investors with potential investors. Once the matching fund is in place and all the necessary qualifications are met, HKSTP will process the investment and it means a start-up can raise up to at most HK$8 million from CVF.
CVF is managed by an investment committee consisting of HKSTP’s management, HKSTP board members and independent investment experts, who all work together to approve investment and supervise the CVF’s operations. HKSTP personnel with experience in investment will be responsible for the fund’s daily operations, and report to the investment committee about CVF’s operations regularly.
For incubatees and Park companies who are interested in applying for CVF, Ma said: “In addition to having innovative and reliable products and services, start-ups need to have good corporate governance and transparency to attract the attention of the Investment Committee for an increased chance of securing CVF.