The relevance of venture capitalists’ expertise, network, professional knowledge and experience to Hong Kong is the most important criteria to become co-investors with the Government in innovation and technology projects, Secretary for Innovation & Technology Nicholas Yang says.
Speaking to reporters after attending a radio programme today, Mr Yang said another criterion for them to co-invest under the Innovation & Technology Venture Fund is their commitment to Hong Kong.
The fund proposed in the 2016 Policy Address is to co-invest with private sectors on a matching basis.
"If they just treat this as a small side fund or the start of a new venture, probably the Government will consider that not favourable," he said as the intention of the Government is to share that risk with the venture capitalists.
"If that risk is properly shared, they see the opportunity to make a profit, they will invest," he said, noting that the Government, as a limited partner, will put money in while leaving management to the general partner.
If the scheme can attract a pool of venture capitalists they will syndicate the investment among themselves to share the risk, he said.
"So one VC will lead, the other will follow."
Mr Yang said getting funding approval from the Legislative Council to launch the Policy Address' inno-tech initiatives will not be easy, but the Government will present facts and details to legislators and answer their questions when seeking funds.
