STARTUP ECOSYSTEM HITS NEW HEIGHTS

Hong Kong's startup ecosystem has been steadily maturing in recent years, leading to a surge in early-stage firms with significant potential.

According to the latest statistics from Invest Hong Kong (InvestHK), the number of startups in the city reached a record high of 4,694 this year, a 10% increase compared to last year and approximately 40% more than in 2020. Growth has been particularly strong in the health and medical sector, and in the sustainable technology/green technology sector.

Startups are also making a substantial contribution to the labour market. In 2024, they employed nearly 18,000 people, reflecting a 7% year-on-year increase and growth of around 65% since 2020.

Director-General of Investment Promotion Alpha Lau said that the startup sector's robust growth can be attributed to proactive government measures aimed at supporting its development. “The Hong Kong Government has spent a lot of effort to promote emerging sectors and emerging companies, resulting in remarkable growth in the total number of startups.”

One local fintech startup, Riverchain, was established two years ago and provides a digital financing platform for the construction industry. The company highlighted that Hong Kong's well-established financial infrastructure has been instrumental to its development.

Riverchain Chief Executive Officer Ben Wong remarked: “Hong Kong was very strategic to our growth. We want to be more than just a Hong Kong company, we want to be an international company. Hong Kong provides us with a strategic location, just a four-hour ride to Southeast Asia.”

Mr Wong emphasised the quality of talent in Hong Kong, stating that it is among the best in the world, offering a reliable pool of highly skilled and knowledgeable individuals.

One emerging segment in Hong Kong's innovation landscape is femtech, which focuses on technology solutions for women's health. One startup in this area, Femtech Future, is a consulting firm that assists other femtech startups.

The company's founder and CEO, Maaike Steinebach, stated: “Hong Kong has an amazing entrepreneurial ecosystem, so firstly it is very easy to set up your company here. It took me about a week to set it up – the company secretariat and accountants are readily available. There are also amazing co-working spaces, making it convenient for a startup like me.”

In the coming year, InvestHK will continue to engage with companies around the world through its 34 global offices. The department aims to provide potential investors and businesses in the Mainland and overseas with the latest information about Hong Kong's business environment, encouraging them to set up or expand their operations in the city.

InvestHK is also focused on enhancing its investment promotion capabilities by expanding its overseas network, particularly in countries along the Belt & Road Initiative. This includes establishing a new office in Türkiye that is expected to become operational in the first quarter of 2025.

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