I&T Fund Adds New Partners

The Innovation & Technology Commission today announced that the Innovation & Technology Venture Fund has added three venture capital funds as co-investment partners.

The commission called for a new round of applications from venture capital funds to become co-investment partners of the fund early this year.

It received 11 applications.

Based on the assessment criteria including the venture capital fund's capability, its investment strategy and performance, its management team's expertise and experience and its local network and resources, as well as the advice of the fund’s advisory committee, the commission selected three co-investment partners at the first stage.

They are Greater Bay Area Homeland Development Fund, Isola Capital and Lingfeng Capital.

The remaining selected partners will be announced later.

The Government set up the fund with an aim of encouraging venture capital investment in local innovation and technology (I&T) startups and creating a more vibrant startup ecosystem in Hong Kong.

The co-investment partners are responsible for recommending suitable investment targets to the Government which will co-invest with them at a ratio of approximately 1:2 in eligible startups.

The fund signed co-investment agreements with six venture capital funds in the third quarter of 2018.

The Government has co-invested with the partners through the fund in 19 local I&T startups so far. Its investment has totalled around $100 million, attracting over $500 million of private investment.

The business areas of these I&T startups include supply chain management, e-commerce, financial technology, biotechnology and artificial intelligence.