To assist recent immigrants from Hong Kong in starting enterprises in the UK, a business group formed by Hong Kong residents in London is creating a startup program.
The initiative was unveiled by the coordinator, the Hong Kong Business Hub, on August 8 in London. Each successful application will receive a minimum $64,000 in equity funding, with a total investment of just over $635,000 for the program.
Many Hong Kongers who relocate to the UK are interested in starting their own businesses, but Puifung Leung, the co-founder and head of the Hong Kong Business Hub, noted that they might not be familiar with the regional business climate. Following 2019, when China started cracking down on supporters of democracy in a former British colony, most of the hub’s participants and potential participants left Hong Kong.
Leung stated, “They may have outstanding concepts, but they may not have the resources, knowledge, or money to make it happen.” With this startup training program, Hong Kong Business Hub wants to assist these friends. They can obtain funding and immediately provide the investor with their goods and services and clarify why they require the funding.
“Book a date”
The center withheld the name of the financier who, according to Leung, wishes to quietly support Hong Kong business owners.
She promised that the organization would give the parties enough time to match. She explained the procedure by saying that investors and investees must go on a date. “We act as a matchmaker when they got to know one another.
In accordance to the Hong Kong Business Hub, the program has the backing of the Confederation of Small and Medium-sized Businesses and the London’s Chamber of Commerce and Industry.
The center, which was established in 2021, aims to assist, support, and link Hong Kong entrepreneurs with businesses growing in the United Kingdom and the United States. Simon Shen, a researcher in international politics at the Taiwanese National Sun Yat-sen University, & Pat Woo, a former dean at the Li Ka Shing Faculty of Medical at the University of Hong Kong, are two other co-founders.
Program director Eric Yung stated that although the investor may offer exposure to networks and expertise as well as a position on the board in the firm it is sponsoring, it is unlikely to participate in day-to-day operations.
With the successful application, the investor’s equity participation would be negotiated; typically, the investor’s holding share would not exceed 20%, according to Yung.
Successful participants could meet the potential investor at seminars and networking opportunities for free, according to Yung.
Applications for the initiative will be taken until September 17. The applicant’s company must have been founded in 2020 or later, at least half of its shares must be held by the founding team, and one of the founding members must be a recent immigrant from Hong Kong who owns a minimum of thirty percent of the company’s shares.
A judging panel will look at the business aspects and take into account four other areas for points with bonuses, including whether the venture serves the community in Hong Kong and is consistent with the basic principles of the Hong Kong Business Hub.
The hub will receive a referral fee equal to 1% of the amount invested from successful applicants, which will be used to support the operation and expansion of the program.
Yung predicted that several businesses will submit applications.
One of those considering participating in the incubation program is a recent immigrant from Hong Kong who operates a cybersecurity business in the U.K. His business already takes part in a mentorship program for its members that is run by the Hong Kong Business Hub. He anticipates that more mentees will share his passion.
“An external investor would provide funding and resources to companies that wish to establish themselves and grow in the U.K., which will positively support our businesses,” the immigrant stated.
The immigrant informed that although he was worried about discovering the investor’s identity, he was willing to tolerate the initial element of mystery so long as he knew it before any contracts were signed.
Due to his immigration status, another recent immigrant from Hong Kong who wished to remain anonymous is requesting refuge and has not yet launched his firm. He expressed his belief that the program would aid the first-time Hong Kong residents who desire to pursue new endeavours.