Startup entrepreneurs and venture capitalists are not too excited about our chief executive’s announcement of a HK$2 billion Innovation and Technology Venture Fund that will co-invest with the private sector in local startups.
While any amount is better than nothing, the terms of the fund are not that attractive, they say.
Under the scheme, the government will match every two dollars the private sector puts up with one dollar of investment. Some say that amount is too conservative.
“We would rather supply that additional one third of capital ourselves to avoid the constraints of government administration,” one venture capitalist told the Hong Kong Economic Journal.
The government is also urged to provide other forms of help.
“Lots of startups want to break into the international market, but there is no support in this area whatsoever,” young entrepreneur Ping Wong wrote in her blog.
In forming technology policies, the government should invite startups to join relevant committees because they are more familiar with the latest trends, Wong added.
It is also suggested that the government devote more resources to help turn research and development results into commercially viable products, as well as take the lead in buying the products as part of its procurement plans.
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