Is Hong Kong a great place for startups?
When you think about participating in the incredible bunch of startups, you will experience new opportunities. Various startups in this world have embarked into the business world to gain profit. Approximately half of the startups have also achieved their success. Those startups had made their mind clear about the idea and the business place while other half entrepreneurs have to face the failure stage.
So, how will you decide which startups or which business world you have to choose? To experience unique possibilities for embarking into the business world, you need to make sure that you have selected the right place for it. Because when you need to be aware of the ecosystem, taxation, government schemes, and the strength of the finance center.
And when you set up the business in Hong Kong, you will find these options very convenient as per your business objectives. This place is not just a land of diverse cultures and rich heritage, but also a home of the most robust and dynamic startup ecosystems of the globe.
These groups of multicultural startup founders have become the backbone of Hong Kong’s startup ecosystem. These startups are creating various job opportunities for the Hong Kong economy. Moreover, an ample number of incubators, and accelerators, supported by a strong network of ecosystem builders and stakeholders, also showing a remarkable interest in the ecosystem.
If you want to gather information regarding the startup ecosystem of Hong Kong, deep dive into this article-
From financial center to key FinTech Hub
Do you know that with the advancement in the technology, and new opportunities presented by the thriving startup ecosystem, Hong Kong has become the FinTech hub? Now, Hong Kong is usually known for its position as a leading global financial center. However, over the last three years, Hong Kong has been transitioning from a leading Financial center to a key FinTech Hub. Below shared are the contributing factors that have helped Hong Kong to become the Fintech hub for several startups.
Contributing factors include:
- FinTech associations and events
- Corporate — startup collaboration
- Regulatory framework
- Its safeguard for intellectual property and data protection
- A growing and diverse ecosystem
- Regulators and government support
- Strength of its financial sectors
- A strong talent pool
- Recent FinTech startups that have raised funding
- Hong Kong’s position as a gateway to regional and Mainland China markets
- Supportive community builders
FinTech startup activity and unicorns
As a matter of fact, startups are known for their growth and disruption of the resources. In Hong Kong, you will see extensive activity in the startup ecosystem, an estimated 3,000+ startups. The unique and strategic positioning of this place allows having fast and high scalability to the business owners. Moreover, with the help of a hyper-connected population, products can be tested easily. With the strong presence of genuine support and solidarity within the ecosystem, Hong Kong has been able to boost its attractiveness in the business world.
Specifically, the city has boasted the nine homegrown unicorns, and of which four in the FinTech sector-
- WeLab (raised US$425 million)
- AirWallex (raised US$202 million)
- The TNG FinTech Group (raised US$115 million in Series A, the largest series A investment for a FinTech company)
- BitMEX (the trading history of over US$34 billion worth of Bitcoin since its launch)
Support initiatives for FinTech
If you are thinking about setting up the business in the FinTech sector, then you will be pleased to know that the city’s supportive ecosystem is geared up with the HKSAR Government initiatives. To further develop Hong Kong as a sustainable and powerful FinTech hub, several government programs, regulations, and policies have been initiated by the HK government.
Since FinTech is a key technology area that requires investment and attention, Hong Kong has been doing its best to present more opportunities to fintech startups. That’s why Hong Kong has been recognized as a leading global financial center for some time now. In fact, it is expected to launch several virtual banking licenses authorized by the Hong Kong Monetary Authority, and more are expected to follow soon.
Government initiatives in the GBA
Concerning the GBA, the government of Hong Kong has also initiated several programs. This economic cluster incorporates the 11 cities of the Guangdong-Hong Kong-Macau regions. With the help of these initiatives, Hong Kong is promoting growth, innovation, and also building better relationships between countries and the regions. Well, this synergy is intended to collaborate China’s human capital resources, efficient supply chains, large-scale consumer markets with Hong Kong’s financial system together.
Hong Kong’s corporate community has initiated the Greater Bay Area Homeland Development fund for continued innovation and technological development in the region. It will also provide a financial boost to the technology companies operating in the GBA. Moreover, this platform is also expecting to include important information about patents and IP.
Corporate initiatives and community builders
Another connected pillars which will help to operate your business successfully in Hong Kong are corporate initiatives and community builders. The FinTech synergies are opening with the corporates, startups, and incumbents in several technological and financial sectors. All these parties enjoy symbiotic relationships with each other. In fact, they also show the various sets of competitive challenges and advantages to develop win-win collaborations and partnerships in the dynamic FinTech arena. Moreover, these startups are also supported by the community builders to drive the FinTech ecosystem successfully.
Best spot for setting up the business
Being known for the gateway of China, the financial center of the country, and the business hub, Hong Kong provides several opportunities to the business owners. In fact, this place is also holding the tagline for the foreign business owners to set up their businesses. Below shared are some of the reasons-
- Trustworthy economy
- World-class infrastructure
- Tax-friendly jurisdiction
- International market
- A productive legal system
Some people think that the ease-of-doing-business and healthy entrepreneurial spirit of the place is considered as the same thing. However, they both possess different meanings. But when you set up the business in Hong Kong, you will experience a positive impact from both of the points.
Moreover, as per the world’s bank report 2020 — Ease of doing business, Hong Kong spotted on the third position globally.
By now, you would have got an idea about Hong Kong’s startup ecosystem, and the government initiatives or schemes designed to set up the business. So, if you are thinking about whether Hong Kong is a great place for launching for a startup or not, we believe that now you should have got your answer. Setting up the business in Hong Kong also means that you are opening a new way to enter the Chinese market.
Hong Kong is flooded with an ample number of resources and opportunities that are just more than enough to grow the business. Be prepared with your business idea, the funds, and just land in the utopian land of business owners. And for any professional help like registering and incorporating your business, you can hire Startupr.