HKUST engineers entrepreneurship fund

Hong Kong University of Science and Technology (HKUST) has put up HK$50m ($6.4m) for a new university venture fund targeting its early-stage spinouts, OpenGov Asia reported yesterday.
HKUST Entrepreneurship Fund (E-Fund) will run for five years and will invest up to $250,000 per company, facilitating early-stage activities such as R&D, market scoping and business development.
Aside from HKUST’s initial contribution, E-Fund will additionally seek donations made in support of the university’s innovation and technology strategy.
E-Fund will enter rounds alongside qualified co-investment partners such as corporate venturing units, VC firms and family offices, giving precedence to investors possessing a strong track record in venturing, innovation and technology.
The vehicle is open to businesses founded within the past five years where shares are owned by HKUST faculty, staff, students or alumni.
HKUST hopes the move will serve as another signal for its entrepreneurial ecosystem, helping embryonic businesses with financial support crucial to their survival.
The fund is also regarded as aligned with Hong Kong’s efforts to build a diversified economy. Hong Kong is currently home to 340,000 startups and small and medium-sized enterprises, which together support some 45% of the special administrative region’s private-sector jobs, according to OpenGov Asia.
John Chai, vice-chairman of HKUST’s university council and chairman of its knowledge transfer committee, said: “While it appeared more funding is available for startups these days, it remains difficult for early-stage startups to secure financial support.
“Yet [the funding] is most crucial for their survival and sometimes determines if a brilliant idea can be turned into something that changes life.”