Launch of Startup Incubator for Recent Hong Kong Immigrants to the UK

17 Aug, 2023

Launch of Startup Incubator for Recent Hong Kong Immigrants to the UK.

Hong Kong Business Hub, an organization established by Hong Kong natives in London, is introducing a startup initiative aimed at assisting recent Hong Kong immigrants in establishing their businesses within the United Kingdom.

Unveiled in London on August 8th, the program promises successful candidates a minimum equity investment of $64,000 each, with a total investment pool exceeding $635,000. The co-founder and director of Hong Kong Business Hub, Puifung Leung, emphasized that numerous Hong Kong immigrants to the U.K. are enthusiastic about entrepreneurship but lack familiarity with the local business landscape. Many of the potential program participants and hub members had left Hong Kong following China's crackdown on the pro-democracy movement in 2019.

Leung explained, "While they possess fantastic ideas, they often lack the necessary funds, experience, resources, or know-how to translate these ideas into reality. Hong Kong Business Hub aims to support these individuals through this startup training program, offering them funds and direct access to investors to articulate their funding requirements."

The identity of the investor supporting Hong Kong entrepreneurs behind the scenes was not disclosed by the hub. Leung underlined the significance of building a strong rapport between the investor and the entrepreneurs, comparing the process to dating and matchmaking. She emphasized, "The investor and investees should engage in a preliminary meeting. Once they've acquainted themselves, we step in as intermediaries to facilitate the connection.". Once they get to know each other, then we will see if they can get married."

Endorsed by the Federation of Small Businesses and the London Chamber of Commerce and Industry, this program finds support from Hong Kong Business Hub. Founded in 2021, the hub's mission revolves around supporting, promoting, and connecting Hong Kong entrepreneurs and companies expanding in the U.K. and the U.S. Its co-founders include Simon Shen, an international relations scholar at Taiwan's National Sun Yat-sen University, and Patrick Woo, former head of the Department of Microbiology at the University of Hong Kong.

Eric Yung, the program director, clarified that the investor would secure a board seat within the funded startup, providing access to networks and advice without involvement in day-to-day management. Equity negotiations would determine the investor's stake, typically capped at 20%. Successful participants would gain complimentary access to training, networking events, and a chance to meet potential investors.

The application window extends until September 17th. Eligible candidates must have founded their companies in 2020 or later, with the founding team retaining at least half of the shares. Furthermore, one of the founders must be a recent Hong Kong migrant owning a minimum of 30% of the company's shares.

Applicants will be evaluated by a judging committee based on business aspects, with bonus points granted for factors like positive impact on the Hong Kong community and alignment with Hong Kong Business Hub's core values. Successful candidates will need to contribute a 1% referral fee from the investment amount to support program operations and development.

Anticipating dozens of applications, Eric Yung believes that the initiative will attract a substantial response. Entrepreneurs like Forster Chiu, a new Hong Kong migrant who heads a cybersecurity company in the U.K., find the concept appealing. Chiu, who participates in the hub's mentorship program, sees external investor support as beneficial to businesses seeking growth opportunities.

Another anonymous Hong Kong migrant, currently seeking asylum and planning to launch a business, expressed optimism about the program's potential to empower newcomers to forge new paths. He remarked, "For individuals like me who departed Hong Kong in a rush and lack funding, training, and a network, this program offers a rare chance to pursue our entrepreneurial dreams."