The government of Hong Kong is all set to launch a $637 million tech fund (HK 5 Billion) to benefit the startups looking to reach the unicorn status, commented Hong Kong’s Financial Secretary Paul Chan.
Paul Chan, stated that the government is hoping to use the strategic tech fund for filling the gaps between Series A and B startup financing, and also encourage investors in backing the Hong Kong tech entrepreneurs.
The tech fund was firstly introduced in Hong Kong’s yearly budget speech in February, which was already a part of the “Hong Kong Growth Portfolio”, a HK$22.4 billion investment vehicle.
Basically, Hong Kong Growth Portfolio is a fund scheme that carries similarities with ‘Temasek’, Singapore’s sovereign wealth fund. Both aim at enhancing financial services and innovation and also being a part of a “Future Fund” established by the local government in 2015 with an allocation of over HK$200 billion.
Hong Kong is a base for almost 600 FinTech companies, with 7% of them in the blockchain sector.
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