According to the Global Innovation Index 2019, Hong Kong is the third most innovative state in Southeast Asia, East Asia, and Oceania. The last year has been amazing for the Hong Kong startup ecosystem. This growing ecosystem has caused Hong Kong to enter the list of top 25 startup hubs. This has been declared in the Global Startup Ecosystem Report of 2019.
According to lnvestHK’s 2019 startup survey reports, significant improvement has been observed in all key parameters that decide the growth of the startup ecosystem of a particular region. Some of these factors include:
- Up to 21 per cent increase in the total number of Hong Kong startups raising the number to 3,184 startups.
- Over 31 per cent increase in the employment rate causing the total number startup of employees to rise to 12,478.
“The backbone of this ever-growing startup ecosystem is the multi-cultural group of founders,” says Julia Markle of ClothingRIC. “They keep on creating job opportunities for the economy of Hong Kong.”
As a result of this, there has been a remarkable rise in the number of accelerators, coworking spaces, and incubators. This ecosystem is backed with a solid network of stakeholders and builders.
The rapidly growing startup ecosystem of Hong Kong
The Hong Kong startup ecosystem has been growing by leaps and bounds. In 2019, the total investment in the startup industry raised to US$720 million. Today, Hong Kong has over seven official unicorns. The government has not only lowered the taxes but has also eased its progressive visa policies.
This has caused the tech and non-tech talent from all across the world to contribute to the growth of Hong Kong’s economy. With access to the latest technology, considerable government funding, and utilisation of technology to reduce business expenditure, the Startup Ecosystem of Hong Kong is expected to reach unprecedented heights in the near future.
Let’s discuss what is causing the startup ecosystem of Hong Kong to expand at such a rapid pace. So, without further ado, let’s dive deep into the details.
Funding from a diverse group of investors
“Global investors have realised the potential that the startup ecosystems of East Asia have,” claims Alex Reynolds of EMUCoupon. “Since Hong Kong has the fastest-growing of all Asian ecosystems, it has been attracting the most diverse group of investors from major origin countries.”
The interest of non-local funders is taking this ecosystem to the top of the list of global investment opportunities. Today, 34 per cent of the Hong Kong startup founders are non-locals. 59 per cent of these founders are local, whereas seven per cent are Hong Kong returnees.
The non-local founders are from diverse territories including the US, the UK, Australia, France, Canada, Mainland China, Italy, India, Singapore, Germany, and more.
Access to the widest range of industries
Today, every industry has been growing. There is no field that entrepreneurs don’t want to enter. Young developers in Hong Kong are designing apps with international appeal, disrupting fintech, and providing unique and innovative solutions to retailers. There’s hardly an industry that is not being reshaped by startups.
According to 2019 stats, the following are the industries that have the highest number of startups:
- Fintech has over 456 startups
- E-commerce/supply chain management have 342 startups
- Logistics technology and information is leading with 342 startups
- Computer and technology operates 322 of the startups
- The design has taken over 301 startups
- Professional or consultancy services cover around 287 of startups
- Data analytics has taken over 224 startups
- The hardware industry owns 210 startups
- Education and learning cover 158 of the total startups
- Health and medical is running 151 startups
- Biotechnology has 32 startups
- Robotics and smart manufacturing industry has added 33 startup
- Foodtech is operating around 41 startups
- Social innovation and venture has 54 startups
- Retail technology covers 61 of the total Hong Kong startups
- The sustainable green technology industry is expanding with 93 startups
- The smart city has 104 startups
- Gaming and digital entertainment owns 135 startups
The future of Hong Kong startup ecosystem
To grow at an even faster pace, the Hong Kong startup ecosystem needs more of everything from more talent to entrepreneurs, accelerators to angel capital, education of coworking space, there is a lot that still needs to go in to maintain the unprecedented growth of the Hong Kong startup ecosystem.
With the ever-growing startup ecosystem awareness, the young generation has become more conscious about entrepreneurship. For startups in Hong Kong, it is a great opportunity that should be utilised. The authorities should especially promote a culture of entrepreneurship where innovation and ingenuity are valued.
Also Read: Hong Kong startup ecosystem reaching for the top floor
Regardless, Hong Kong has an incredible startup environment that welcomes people from diverse areas of life. Here, every individual regardless of the skill he possesses can find a meaningful career. To support this startup ecosystem, it is important to bring parents on board.
Within the past five years, the Hong Kong startup ecosystem has gone through tremendous progress. The success of this ecosystem can be attributed to entrepreneurs without whom it couldn’t have happened. However, talent, technology, and education have also played equal roles in promoting startups and earning them funding from all across the world.
This Asian startup ecosystem offers amazing investment opportunities that bring a high return on investment and more.
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