S for IT speaks on Innovation and Technology Venture Fund
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Reporter: Mr Yang, can you further elaborate how the Innovation and Technology Venture Fund can help local start-ups and when do you plan to form a committee you've just mentioned?
Secretary for Innovation and Technology: Yes, I've just said it in Chinese. First of all, this Venture Fund is targeted to fill a gap in the current venture funding system in Hong Kong, which is what we call Series A or Pre-Series A gap. Series A funding refers to the amount of funding that a start-up will need after proven its business model. Then it needs significant funding to help it grow fast or, in business term, to scale up. So this is actually lacking in Hong Kong. So what we hope to do with the $2 billion is we combine force with the well-known so-called venture capital funds. We'll invest one part, and then the venture fund will invest two parts. We'll basically share one-third the risks for the venture fund. Then we'll attract them to invest in Hong Kong's start-ups, therefore fill the gap that we currently have.
Reporter: So how about the committee you've just mentioned? The committee is to monitor the fund?
Secretary for Innovation and Technology: No, the committee is to help to select the venture capitals. The fund, basically each venture capital, these are huge funds, we have a certain scale requirements, they have to be responsible to their investors, and they are so-called seasoned, experienced and reputable venture funds, so they have to deliver. So we're using the market mechanism to help to make this work.
(Please also refer to the Chinese portion of the transcript.)
Ends/Saturday, July 23, 2016
Issued at HKT 13:41
Issued at HKT 13:41
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