Startup ecosystem hits new heights

December 28, 2024

Strong momentum:

Ms Lau highlights that startups in the health and medical sector, and in sustainable or green technology, have seen the largest increases, reflecting the government’s focus on innovation and technology, and green energy.

Strategic advantages:

Riverchain Chief Executive Officer Ben Wong (right) believes Hong Kong’s favourable location and highly skilled talent make it the ideal place for business development.

Supporting entrepreneurs:

Femtech Future Founder and CEO Maaike Steinebach (left) highlights the ease of establishing a company in Hong Kong and the financial services sector’s support for small and medium enterprises as being instrumental.

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Voiceover: 
Hong Kong's startup ecosystem has been steadily maturing in recent years, giving rise to numerous early-stage firms with huge potential. This year, both the number of startups and of startup employees in Hong Kong reached record highs. 

According to the latest statistics from Invest Hong Kong, the number of startups in the city this year has reached 4,694, a 10% increase compared to last year, and around 40% more than in 2020. This year, growth in the health and medical sector, and in green technology, has been particularly strong.

The city's startups have also contributed significantly to the labour market. This year, startup firms employed nearly 18,000 people, reflecting a 7% year-on-year increase, and growth of about 65% compared to 2020.

Director-General of Investment Promotion Alpha Lau stated that the startup sector's robust growth can be attributed to proactive government measures aimed at supporting its development.

Director-General of Investment Promotion Alpha Lau : 
The Hong Kong Government has spent a lot of effort to promote emerging sectors and emerging companies, so this year the 2024 startup survey shows that we have got a remarkable growth in the total number of startups. Now we have 4,700, up 10% from last year, and this year we have seen some new sectors emerging, indicating that the Hong Kong Government’s effort to promote industries in this area has now seen a very good result.

Voiceover : 
This local fintech startup, Riverchain, was established two years ago. Its business includes providing a digital financing platform for the construction industry. The company says Hong Kong's well-established financial infrastructure has been instrumental to its development.

Riverchain Chief Executive Officer Ben Wong : 
Hong Kong was very strategic to our growth, because of course we want to be able to launch our business in Hong Kong, but we want to be more than just a Hong Kong company, we want to be an international company and Hong Kong provides us with that base on the strategic location – you know, in just a four-hour ride we are able to go into Southeast Asia.

The talent in Hong Kong to me, when it comes to be able to support a financial business, is one of the best in the world. They are highly skilled, and also highly knowledgeable, to be able to help us grow our business.At the same time, we have been able to also attract international talent.

Voiceover : 
Hong Kong's innovation and technology sector is thriving. One emerging segment in recent years has been femtech, or technology solutions that support women's health. Femtech Future is a consulting firm that assists femtech startups in their entrepreneurial journeys – and is also a startup itself.  Its founder says Hong Kong's business ecosystem is highly conducive to entrepreneurship.

Femtech Future Founder and CEO Maaike Steinebach :
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 some amazing co-working spaces where you can work here, and it is very, very convenient for a startup like me, where I have to visit a lot of new clients on a daily basis. Also the financial services industry has been very accommodating for small and medium enterprises. 

Voiceover : 
In the coming year, InvestHK will continue to engage with companies around the world through its 34 global offices. It will provide potential investors and businesses in Mainland China 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 aims to enhance its investment promotion capabilities by expanding its overseas network, particularly in countries along the Belt & Road Initiative. This includes the establishment of a new office in Türkiye that is expected to become operational in the first quarter of next year.

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.