Since its inception in 2001, the Hong Kong Science and Technology Parks Corporation (HKSTP) has played a pivotal role in promoting the growth and development of startups. Known as Science Park, HKSTP provides incubation and acceleration programmes not just for local but global startups as well. Unlike traditional accelerators, the organisation provides a continuum of programmes from ideation to market scaling, catering to a diverse community of 800 startups.

In this interview, Derek Chim, Head of Incubation and Acceleration Programmes at HKSTP, delves into the HKSTP’s distinctive approach and the unique benefits, challenges, and opportunities it brings to the global startup landscape.

Edited excerpts:

How is HKSTP’s programme different from other similar acceleration programmes?

At HKSTP, we need to deal with the whole spectrum of startup growth rather than focusing on a particular stage. While traditional accelerators focus on seed or pre-seed round startups, Science Park in Hong Kong covers programmes starting from ideation-incubation, i.e., ideating companies and helping them create minimum viable products (MVPs) and push their products into the market for testing, etc.

On the other hand, we have a programme for startups with an MVP that has secured their first few customers. We at HKSTP help them scale. This is an extension of the ideation-incubation programme.

Also Read: How HKSTP can help international startups in the next stage of their expansion journey

At HKSTP, we have a community of 800 startups and provide them with various services, such as go-to-market, scaling, matching with corporate customers and investors, and partnership opportunities among themselves.

How many applications do you receive on average from across the globe, and how many do you admit per batch?

Last year, we received nearly 2,000 applicants for ideation-incubation and acceleration from Hong Kong and globally, of which we admitted around 1,000 startups for the Ideation Programme (50 per cent).

The incubation is a three-year programme focusing on monetisation, go-to-market, gaining the first customer, etc. That means we incubate about 300 startups annually, covering different sectors, including hardware, ESG, and biomedical.

For acceleration, we are more selective; for every ten applicants, we select one or two.

When it comes to scaling and expanding globally, most Hong Kong-based companies look eastward, not west. Why so?

No, it is not correct. While Mainland China is an excellent place that evokes great interest, only a small number of startups have moved there in the past three to four years.

Today, our startups operate in 20-30 countries, although many of them still prefer Hong Kong. In the past two years, we have not only helped them start rolling out their products in Hong Kong and China but also brought their products to other countries like the Middle East and the US.

At Science Park, we have a lot of management people with international connections. We help startups partner with those in the West.

What benefits does HKSTP offer to global startups from outside of Hong Kong?

First of all, no matter what product you’re building, the world is divided. If you want to build a product in Asia, I think Hong Kong is one of the best choices, in addition to Singapore and South Korea. The government is very supportive in Hong Kong; it has implemented many business-friendly policies and tax benefits.

Secondly, we have a lot of good researchers in Hong Kong. When you get incubated or accelerated at the science park, we’ll take you along to other countries and big corporations.

For example, if you’re creating a fintech product and want to meet the HSBC CEO or top management, we can arrange that meeting. That is the power of being part of the startup community at Science Park. If you want to meet him on your own, you won’t be able to meet any of the bank’s top execs.

How do you compare the venture capital industry in Hong Kong with that of, say, Singapore?

As we know, there are different types of startup investors, and when it comes to institutional investments, Singapore is very strong.

However, we have many angel and corporate investment networks in Hong Kong that can write cheques worth US$100,000 to US$200,000 per startup. HKSTP engages them as mentors for our startups. We hold tech events almost daily, and these angels attend and interact with these ventures.

Also Read: Here are the five innovative startups we met at Hong Kong Science and Technology Park

When these startups graduate and get admitted to our acceleration programme, we help the founders improve their pitching skills. While most founders in our programme have great technology and products, they lack the skills to pitch the problems they solve and the opportunities they see. Our team of investors helps them upskill how they structure their business model.

We have a network of over 1,000 investors in Science Park, and we can connect these investors with our startups. Some are corporate ventures, such as HSBC and Gobi Partners. We help them with the match with these corporates.

HKSTP also has a corporate venture fund worth HK$1 billion, from which we co-invest in our startups with corporate VCs. In the past four years, we have received HK$19 each from corporate investors for every dollar we invested in startups.

We are still in the initial stage in Hong Kong, so we can leverage these three things to grow the engine.

What are the significant challenges faced by startups based in Hong Kong?

The challenges encompass four areas: pitching skills, go-to-market strategies, funding, and talent acquisition.

Lack of pitching skills: Our startups are great at technology and products but lack the skills to pitch the way it should be. While they can pitch about their technology and products, they fail when it comes to pitching the problems and opportunities.

Lack of proper go-to-market strategy: Suppose you are a producer of chopsticks. You can think of chopsticks as eating utensils, which is a great market. The same chopsticks can be recycled to make carbon-negative furniture, which is another great opportunity. However, many founders fail to see this opportunity. This is because they are so young and limited by their scope of imagination. How startups position their inventions and products in a particular market could change how they go to market.

Lack of funding: Startups need our support to raise capital. They often easily fall into unavoidable traps in their rush to raise capital and raise money from those who have no idea about the business you run or the product you develop. Raising money from the wrong people could backfire. You should always try to raise smart money.

Lack of talent: Hong Kong has good researchers, scientists, and businesspeople, but it doesn’t have good product managers or marketing people.

These four areas are exactly what most startups in Hong Kong need help with.

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In April, Malaysia-based Plixstar was named one of the top three startups from Alpha Startups for Women’s Demo Day, hosted by 1337 Ventures.

The company aims to revolutionise the plastic industry by creating an online platform for small and medium plastic manufacturers. It helps them undergo digital transformation, grow their business, and embrace plastic recycling with just one platform.

“Traditional businesses often resist change, with stakeholders wary of embracing new technologies due to concerns about disruption or unfamiliarity. To address this, we offer a guided journey to demonstrate our platform’s seamless solutions, reassuring stakeholders of the ease of tapping into its benefits,” explains Abby Teoh, Founder of Plixstar, in an email interview with e27.

“Another challenge is the perceived high initial costs of digital solutions. However, through our platform, businesses can establish their presence at a fraction of the cost of hosting their digital platform. We only charge a small transaction fee, making it financially viable for them to join.”

To support small and medium-sized plastics manufacturers in their digital transformation, Plixstar offers the following features:

Extensive Supplier Network
Plixstar offers access to a vast network of suppliers, enabling manufacturers to find the best deals and materials tailored to their requirements.

Also Read: The climate change and gender equality connection: How to support underfunded women-owned business

Market Insights
The platform provides regular updates and insights, keeping manufacturers informed about the latest trends and pricing fluctuations in the plastics industry. This empowers them to make well-informed decisions.

Deals of the Day
On the 15th of each month, Plixstar presents exclusive deals on plastic resins, offering manufacturers cost-effective options for procuring materials.

Online Sales Platform
Plixstar assists small and medium manufacturers in selling and promoting their products directly on the platform. This helps them establish an online presence and reach a wider audience, with Plixstar also supporting marketing efforts to enhance visibility.

“Businesses can advertise their products within our platform for increased exposure and visibility among industry peers. This additional service incurs a small fee but provides valuable access to the ecosystem that Plixstar hosts in the digital space,” Teoh says.

“Concerns about data security and privacy are also prevalent. To address this, our platform gives manufacturers full control over the data and information they choose to share, ensuring their sensitive information remains protected.”

Also Read: Gobi Partners backs Humble Sustainability that helps organisations reduce e-waste

Collaboration to support plastic manufacturers

Plixstar has established strategic partnerships and collaborations across various sectors to support plastic manufacturers’ objectives.

These alliances include government agencies such as Matrade and the Penang Green Council and esteemed industry associations such as the Malaysian Plastics Manufacturers Association (MPMA) and mid-tier consortia. Additionally, partnerships with leading petrochemical companies such as Lotte Chemical Titan, TPC, Idemitsu, Teijin, and Miliken provide pivotal platforms for introducing innovative products.

Regarding supporting plastic manufacturers with information and knowledge, Plixstar’s collaboration with Commoplast, a reputable plastic news agency, ensures manufacturers are well-informed about the latest industry trends and pricing insights. It also set up alliance with Fuller Academy, known for its comprehensive online courses on sustainability and ESG principles.

The company also has a key partnership with Nuplas Solutions, a Circular Economy implementation partner and consultant, which exemplifies this commitment by promoting material circularity practices across the industry.

In the future, Plixstar aims to be the leading B2B platform in plastic circularity, connecting all stages of the supply chain from raw materials to waste management.

Also Read: Why these startups focus on informal plastic waste workers in the fight against climate crisis

“We prioritise transparency in pricing, materials, and market insights, making it easier for stakeholders to make informed decisions,” Teoh closes.

From its base in Penang, the company is run by a team of eight and is currently bootstrapped.

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Image Credit: Plixstar

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Singapore-based early-stage startup investment firm ThinKuvate has launched its first India-focused fund with a total corpus of INR 100 crore (US$12 million)

ThinKuvate India Fund will look to invest in 12 to 15 startups annually across different tech verticals with an initial amount of up to INR 3 crore (US$360,000).

Also Read: Lack of pitching skills is a major problem Hong Kong-based startups face: HKSTP’s Derek Chim

The fund prefers to invest in revenue-generating product startups that have built early traction and market acceptance.

The investment vehicle has received the approval of the Indian market regulator SEBI. It expects to hit the first close within this quarter.

ThinKuvate Founding Partner Ritesh Toshniwal said: “Over the last seven years, we have built a strong portfolio of over 22 companies in India and Southeast Asia. Our understanding of both the markets puts us in a unique position of facilitating international LPs’ growing interest in India.”

“From our existing portfolio, we have already invested in Indian startups and the performance of these companies coupled with macros of the Indian economy, growing investors’ interest played a crucial role in ThinKuvate launching an exclusive India fund,” he added.

According to Partner Addison Appu, ThinKuvate is already evaluating several startups and is in the advanced stages of discussions with them. “The surge in digital adoption and conducive policy environment has led to the emergence of products and technologies from India with a “glocal” approach, blending global perspectives with local relevance. Drawing from our experience in mentoring and advising startups, we recognise the potential to extend the India playbook to Southeast Asia.”

Founded by Toshniwal, Ghanshyam Ahuja, and Vikas Saxena, ThinKuvate primarily invests in B2B and B2B2C startups across various sectors, including healthtech, fintech, IoT, AI-ML, consumer-tech, and martech. It participates in seed, angel, and pre-Series A rounds to support promising startups in their early stages of development.

Also Read: Embracing global entrepreneurship: Redefining startup success beyond Silicon Valley

Initially investing approximately US$1.5 million in nine startups in Southeast Asia and India, ThinKuvate Ventures has since facilitated investments totalling US$5 million in 22 regional startups. It has two exits thus far, with one portfolio company listing on the Australian Stock Exchange.

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Earlier this month, sustainability-focused deep-tech venture builder Singapore Deep-Tech Alliance (SDTA) hosted its annual flagship demo day, the Sustainable Innovation Asia (SIA) 2024.

As the third edition of SIA, this event aims to serve as a platform where deep tech meets sustainability to showcase the latest advancements of SDTA’s portfolio ventures.

“At Sustainable Innovation Asia 2024, our showcased ventures from the SDTA24 portfolio stand out for their innovative approaches to addressing pressing climate-related challenges. These ventures have undergone a rigorous nine-month venture-building programme, emerging with pioneering solutions that align with the Sustainable Development Goals (SDGs). What distinguishes these ventures is not just their technological advancements but also their commitment to sustainability and their potential for meaningful impact,” explains Luuk Eliens, Founding Partner at SDTA, in an email to e27.

“We see many startups leveraging advanced technologies such as AI, IoT, and blockchain to address environmental challenges and drive sustainable solutions. This intersection of technology and sustainability presents exciting opportunities for innovation and impact, and it is something we are closely monitoring and supporting within our venture-building programme.”

In this interview, Eliens explains SDTA’s mission, its approach to supporting deep tech startups, and its long-term plan for the market.

Also Read: Deep tech startup Nibertex secures funding for sustainable textile technology

The following is an edited excerpt of the conversation.

Can you explain SDTA’s core mission and objectives in fostering a deep tech ecosystem in Singapore? What problem does it solve for deep tech startups?

SDTA is dedicated to becoming the world’s most impactful venture builder that uses advanced technologies to fast-track global goals. We partner with founders to swiftly develop, test, and grow climate tech startups focused on advancing sustainability in critical sectors such as energy, healthcare, manufacturing, and semiconductors. This is achieved through a strategic alliance involving corporations, investors, research institutions, and government and regulatory agencies.

The challenge with deep tech ventures is that they typically require extensive research and longer-term investment to go to market successfully. However, once market share is achieved, it’s challenging for competitors to replicate their innovations, leading to market disruption.

The key to our approach is the alliance model: We closely collaborate with all alliance members, from corporates to research institutes to government partners to entrepreneurs, and ensure all stakeholders have a vested interest in new venture creation. By doing so, we diversify risk so that we can build game-changing new ventures together.

How does SDTA collaborate with corporations, investors, research institutions, and government agencies to support the development and scaling of sustainable deep tech ventures?

We actively engage with corporates, investors, research institutions, and government agencies to pool resources and expertise, ensuring a holistic support system for our ventures. One key aspect of our strategy involves building diverse teams of entrepreneurs and technical talents around next-generation technologies sourced from leading research institutions worldwide. This facilitates knowledge exchange and ensures that our ventures are equipped with the best-in-class expertise to tackle complex challenges and drive impactful innovation.

Also Read: Uncovering the rise and challenges faced by deep tech startups in Singapore

This year, to extend the impact of our work at SDTA, we are furthering our partnership with Dentsu to extend our innovation capabilities to their networks. We aim to work with Dentsu to foster growth and innovation, enabling their partners to achieve tangible progress towards their sustainability goals and drive impactful outcomes.

Furthermore, SDTA is also deepening our partnership with Lenovo to provide more mentorship and guidance to SDTA ventures in mapping out their product development journey, with Lenovo offering strategic insights and access to its smart manufacturing ecosystem. As a long-standing co-innovation partner of SDTA since 2022, Lenovo’s sponsorship of Sustainable Innovation Asia 2024 demonstrates our continued commitment to jointly bringing sustainable innovation to market.

During Sustainable Innovation Asia 2024, SDTA announced Singapore Science Park (SSP), owned by CapitaLand, as its new home base. By doing so, SDTA gains access to world-class facilities, resources, and a thriving ecosystem of startups, researchers, and industry partners.

Together, SDTA and SSP are committed to driving innovation and sustainability across key industries such as manufacturing, healthcare, energy, and semiconductors. The partnership will foster collaboration, knowledge sharing, and entrepreneurship, paving the way for groundbreaking solutions that address pressing societal and environmental challenges.

How do you envision the organisation’s future? What is the long-term plan?

SDTA is the gold standard in impact-driven deep-tech venture building and our future is clear – to harness advanced technologies as catalysts for achieving global goals with unparalleled efficacy. Through collaboration with our esteemed Alliance Partners from both the public and private sectors, we are methodically cultivating a portfolio of sustainable ventures.

Also Read: Runa Capital plans to propel Asian deep tech startups onto the global stage

These ventures are not just addressing environmental and social challenges but are actively commercialising cutting-edge technologies to do so. Additionally, we are committed to nurturing entrepreneurial and technical talents, empowering them to transform these innovations into thriving ventures. Our long-term plan is to continue this trajectory, expanding our reach and influence and ultimately leaving a mark on the world’s sustainability landscape.

Can you share one important insight about Singapore’s deep tech ecosystem? What is the most notable trend you notice recently?

Deep tech in Singapore is coming of age. Singapore has been consistently investing in research and innovation for several decades now, and increasingly, the excellent research conducted in Singapore is finding its way towards the market.

As a testimony to this mega-trend, we have seen a sharp increase in the number of deep tech venture investment deals in Singapore, growing 31.4 per cent in volume from 2022 to 2023. This makes deep tech a category that is the fastest-growing segment in the venture capital space. Investors are starting to recognise that deep tech companies might require a bit more capital in the early days. However, once products are brought to market, in many cases deep tech companies have a long-term sustained competitive advantage because of the proprietary technology that underpins the businesses.

To dive a bit deeper, as of late, we’ve seen an increased push from both the public and the private sector to ensure more research ends up in the hands of everyday customers and consumers. Slowly but surely, all the right elements are in place to make Singapore Asia’s deep-tech hub from talented entrepreneurs to capital, to the willingness of universities and research institutes to enable technology commercialisation to the support of the government through grants and subsidies to enable deep-tech companies to bring technology to the market.

Finally, especially in the last year, we have seen that many of the technologies and ventures being developed have a strong focus on sustainability and clean tech. This trend was also evident at Sustainable Innovation Asia 2024, the SDTA’s annual flagship demo, where SDTA24 portfolio ventures working on innovative sustainability-related deep-tech solutions were featured.

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Image Credit: SDTA

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There is a wide spectrum of potent results from strategic collaborations. Their contributions can propel sustainability. Their assistance might be invaluable in enhancing the working environment of your staff. Finally, and most importantly, they have several methods they may assist you in expanding your firm.

Finding the correct partner to work with can help you grow substantially more rapidly than you could on your alone. Enhance your company’s growth prospects by mastering the art of smart collaborations.

Increase the number of customers you have

It should come as no surprise that building your client base directly is one of the primary ways in which a strategic collaboration may help your company expand. A new possibility presents itself to the companies to communicate with the audience of their collaborator while at the same time making use of the solid reputation of that collaborator to, in a sense, get their foot in the door.

Cut down on expenses

The reduction of expenses is the primary goal of other strategic collaborations. Many businesses will naturally be motivated to select a logistics partner who can proactively assist them in lowering their costs and improving their operational budget. This is because many businesses are in the process of selecting a partner.

When expenses in a core sector are reduced, it can have a significant impact on the financial health of the firm as well as their ability to engage in other activities (such as expanding into a new market). It should come as no surprise that numerous collaborative collaborations have the potential to cut costs and provide value for both of the parties participating in the alliance.

Grow and develop your company more effectively

In many cases, strategic collaborations and partnerships are centred on meeting immediate requirements. However, when your company adopts a long-term perspective that includes the utilisation of these collaborations to promote long-term business development, they have the potential to become even more important for growth.

Also Read: Human-AI collaboration: The key to unlocking Gen AI’s potential

Businesses are able to put themselves on the fast track to improving these and other areas that drive success by utilising the resources and insights that are only made possible through collaborations of this kind. When the correct partnerships are formed, they have the potential to become a continuous contributor to a wide variety of development efforts.

Businesses have the ability to ensure a long-term boost to their growth and development if they put in the effort to form successful strategic collaborations right now.

Resolve the issues

Every forward-thinking company is willing to recognise when it requires the aid of a partner in order to address difficulties, whether those problems are internal to the company or problems that the company wishes to have an effect on the world as a whole.

You will be in a much better position to tackle these difficulties in a way that will result in effective outcomes that will grow your business if you seek the assistance of a qualified strategic partner. This is true even if the growth of your company is not a direct goal.

Establish trust

Building trust with customers and the industry as a whole is another way that strategic collaborations can assist in the expansion of your company. Your company reaps the benefits of the positive reputation that your partner possesses when it becomes connected with a partner that is already well-known and trusted by other people. As a consequence of this, prospective clients who become aware of your collaboration are far more likely to demonstrate an interest in conducting business with you.

It is possible to observe the significance of trust by observing the rise of influencer advertising and the impact that it has had on the way in which brands attempt to communicate with consumers. Due to the trust and credibility that they have already established with their own audiences, businesses choose to collaborate with athletes, bloggers, and other individuals who have a niche influencer following. Proof that your brand can be trusted and that you provide quality products or services is the presence of marketing collaborations and other types of partnerships.

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