Support for SMEs

To attract more venture capital (VC) funds to co-invest in local innovation and technology (I&T) startups in Hong Kong.

The Innovation and Technology Venture Fund (ITVF), through a special-purpose vehicle "The Innovation and Technology Venture Fund Corporation" (ITVFC), will co-invest with VC funds selected as Co-investment Partners (CPs) in eligible local I&T startups (investee company).

Co-invest at a matching ratio of approximately 1(ITVF): 2 (CP).

 ITVFC's matching investment ceiling:

1. Aggregate amount of matching investments with a CP not more than HKD400 million;
2. Aggregate amount of investments in an investee company not more than HKD50 million; and
3. For each co-investment in an investee company, the matching investment shall constitute not more than (i) 40% of the original total target investment amount sought by the investee company, or (ii) HKD30 million, whichever is the lower.

An "eligible local I&T startup" must meet the following criteria -

1. it or its wholly-owned Hong Kong company was incorporated under the Companies Ordinance within the last seven years and with one of its offices (headquarters or regional office) or its main business operation or its key management or leadership team being located in Hong Kong;
2. it or its subsidiar(ies) (if any) have been engaging in I&T business, covering any part of the research and development or production chain in Hong Kong; and
3. it and its subsidiar(ies) (if any) have a total number of employees (including Hong Kong, Mainland China and overseas offices) being less than 250.

ITVF will NOT accept applications or investment proposals submitted by individual startups directly. Instead, CPs are responsible for identifying and recommending eligible startups to ITVF for co-investment. Startups may contact the CPs direct to explore investment opportunities. The list of the CPs is available on ITVF website.