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Following is the transcript of remarks by the Secretary for Innovation and Technology, Mr Nicholas W Yang, at a media session after attending a radio programme today (January 18):
Reporter: Mr Yang, can I ask about the Innovation and Technology Venture Fund? Under what sorts of criteria will the Government select the projects that they work with?
Secretary for Innovation and Technology: First of all, we're going to openly invite the VCs, the local venture capitalists and also the global venture capitalists. Obviously, we're going to try to see if their expertise, network, professional knowledge and experience are probably the most relevant to Hong Kong. As you know, Hong Kong will not be good in everything. But probably in those areas, some of these venture capitalists will probably have good experience, good track record. So this would be one so-called very important criteria to do. And then the second thing here is their commitment to this region, if they just want to come here and set up a side fund rather than show strong commitment to support this part of Asia. This is also important. I think that those are fairly common factors. In fact these are the criteria used by other countries, like Israel, Singapore, when they co-invest in the VCs funds.
Reporter: So what will not be acceptable?
Secretary for Innovation and Technology: What will not be acceptable? Like I said, if they just treat this as a small side fund or the start of a new venture, probably we'll consider that not favourable. Again, if they show commitment, whenever we talk the VCs funds, they have to show that and we know there is a lot of VCs who are interested in Hong Kong. At the right risk level, they'll enter into this market. The intention of the Government is to share that risk with the venture capitalists. If that risk is properly shared, they see the opportunity to so-called make a profit, they will invest.
Reporter: How will the risk be shared? Will the Government be taking a smaller risk?
Secretary for Innovation and Technology: The risk will be shared via, as I said, the funding. Because as a limited partner, we're putting our money in, letting the general partner manage. That's how one way the risk we share. And if we can attract a pool of VCs, generally the venture capitalists will syndicate the investment. Even we say big projects like Google, not one VC will take on the project. They will share the risk, they will syndicate it among themselves. So one VC will lead, the other will follow and things like that.
Reporter: One final question, the Innovation and Technology Bureau got lots of funding that will have to get approval from LegCo. How confident or how difficult do you think it will be to get the funding approved in LegCo?
Secretary for Innovation and Technology: We do not expect it will be easy. But however, as you know, since I joined the bureau, we have government funding approved. Although we're looking at much bigger scale, I think the most important thing is we can present all the facts and all our details and answer all the questions. I expect LegCo members will very likely support this application.
(Please also refer to the Chinese portion of the transcript.)
Ends/Monday, January 18, 2016
Issued at HKT 14:20
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