Two hundred local technology startups will be selected to receive training and coaching under a two-year program, aiming to enhance their business skills and fundraising opportunities.
Jointly provided by J.P. Morgan, Hong Kong Science and Technology Parks (HKSTP) and Hong Kong Business Angel Network (HKBAN), the Next Technologist Entrepreneurial Champion (NxTEC) program aims to provide business, management skills and fundraising planning that are lacked among most technology startups.
Of the 200 startups, 20 of them will be chosen to get enhanced support services including mentorship, consultancy and fund-raising matching opportunities.
According to a survey conducted by Invest Hong Kong this August, a total of 1,558 startups were registered in Hong Kong, up 46% from last year. Information, computer and technology is the largest sector taking up 19% of the total number of startups.
Investments in technology startups have also grown significantly in Hong Kong. Funds raised through HKSTP’s facilitation were HK$156 million ($20.2 million) in the first five months of this year, compared to HK$200 million in 2014.
Sharpen business skills
Under the NxTEC program, J.P. Morgan will not only offer funding but also advisory services such as technology, legal, accounting and business management to the participating startups.
“We believe the program will help remove some of the obstacles and hurdles that entrepreneurs encounter when they seek to launch, grow and expand their business,” said Andrew Butcher, senior country officer for Hong Kong at J.P. Morgan. “Our intention is to equip them with additional skills and knowledge on innovation, idea generation, productivity, capital raising and business plan development.”
Sophia Leung, CIO for Asia Pacific at J.P. Morgan added, “Investments in financial technologies and emerging technologies in Hong Kong are just a small fraction when compared to the United States. Our team in Asia has expertise on various areas such as technology, legal and accounting. We will provide our professional knowledge and networking opportunities to help startups to grow.”
The NxTEC program includes two series: basic training and advanced services. The basic training targets 200 technology startups in Hong Kong. Twenty startups with the highest perceived potential will move forward to the advanced services level. At this level, the entrepreneurs will receive more than 300 hours of consultancy services and mentorship, as well as investment matching opportunities through networking and pitching events over a six-month period.
From IT to biotech
The criteria of joining the program are simple. “The technology entrepreneurs must be [running] startups that are registered in Hong Kong,” Peter Mok, head of incubation programs at HKSTP told Computerworld Hong Kong.
“The core technologies they are engaged can be in any technology clusters such as IT, electronics, special materials and precision engineering, green technology or bio technology,” he said.
“When selecting startups, we will take into account whether their management teams are committed to their businesses and can develop sound business models for their core technologies,” Mok added.
Angel investors, accountants, lawyers and other professionals will also be invited to share their experiences or professional knowledge with the participating technology startups.
Samson Tam, chairman of HKBAN, hopes that NxTEC could help nurture successful startups.
“NxTEC is an output-driven program which enables startups to equip with better presentation skills, develop good business models and build up a broad investment matching network,” said Tam. “With this program, we hope to incubate more unicorns [success cases] in Hong Kong.”