It still remains a dream to millions of start-ups to be a ‘Unicorn’ or achieve such a status. A unicorn status is acclaimed by startups claiming the valuation of 1 Billion USD. The new article revolves around something related.
Hong-Kong’s Significant Growth in Information Technology
The Information technology industry in Hong-Kong has grown at a rapid pace in the last few years. From approximately 1000 Information technology companies in 2014 the number has singinifcalty increased to 4000 in 2021. This also triggered the count of investment capitalists to step into the IT industry. The investment amount surged from 1.2 Billion USD to about 1.47 Billion USD in the above mentioned timeline.
Adding more to this, to widen the key areas of investment other than the 2 Billion USD, Hong-Kong Government has set up the Corporate Venture Fund and the Cyberport Macro Fund. This step helped widen the investment areas for the upcoming start-ups.
Hong- Kong Racing Towards The Unicorn
The Hong-Kong government has witnessed immense growth in the information technology companies, specifically the start-ups. The two IT flagships of the Hong-Kong government joined hands offering tech funds to companies and worked as an extended arm for the support services to them. This brought the unicorn startups to the count of ten.
Hong-Kong will launch a fund worth 637 Million USD next month in order to support the regional start-ups to help them reach the unicorn status. Raising such an investment may probably attract foreign investors to step in.
According to the Financial Secretary Paul Chan Mo-po the Strategic Investment as the tech funds for companies will act as a bridge between Series A and Series B financing. This may further lure the investors to back the projects and vision of the entrepreneurs in Hong-Kong.
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An Investment Adding a Feather to The Cap
For a note, Series A Funding is the seed capital for the early stage startups to grow and nurture. Whereas Series B funding focuses on established startups who have already generated revenue from sales.
Several other countries are making a run towards financing the information technology sectors. Temasek – Singapore’s wealth fund, is aiming towards the enhancement of various industries including finance and IT. This was included as a part of a future fund established in 2015 with an allocation of HK$200 Billion.
Source: https://www.thecoinrepublic.com/2022/07/28/hong-kong-invests-637-million-is-the-information-technology-sector/