Author: Meta Era
Twitter: https://twitter.com/MetaEraCN
In Hong Kong's thriving cryptocurrency market, with frequent government support and positive policies, investors and creators are full of confidence in Web 3.0 and blockchain technology. In this booming market, Cyberport located at Telegraph Bay is becoming the digital technology flagship of the emerging Web 3.0 market in the Hong Kong region.
Cyberport, wholly owned by the Hong Kong Special Administrative Region Government, currently has more than 380 fintech companies in various fields such as blockchain, cybersecurity, AI, big data, wealth management, and trading engineering. Thanks to the Hong Kong government's active embrace of virtual assets, more and more project teams hoping to make a mark in the Web 3.0 field are pouring into the Pearl of the Orient.
So how can Web 3.0 practitioners from mainland China gain a foothold in the coveted Hong Kong? In fact, Cyberport has ample financial support, talent resources, and venues. Web 3.0 project teams can make full use of these abundant resources for entrepreneurship and innovation. This guide will provide the most comprehensive assistance.
Basic Requirements for Mainland Web 3.0 Practitioners to Settle in Cyberport, Hong Kong
First of all, it is important to note that currently only companies registered in Hong Kong can apply to settle in Hong Kong Cyberport. So how can mainland Web 3.0 project owners register a company in Hong Kong?
The process is actually not complicated:
The first thing you need to do is determine the type of company. Currently, there are two types of companies in Hong Kong: limited liability companies and guarantee companies. The former has capital and the legal liability of company members is limited to the unpaid amount of shares held by each member according to their respective articles of association. The latter has no capital and the legal liability of company members is limited to the amount promised to be paid as company assets in case of liquidation. Next, you need to have a company name. The requirements for company names in Hong Kong can be found in the "Guide on the Registration of Company Names in Hong Kong".
Once these two simple things are settled, you can visit the "Companies Registry" of the Hong Kong Companies Registry and submit your application as required (you can also submit physical documents offline). If your application is approved, the Hong Kong Companies Registry will send you an electronic version of the "Certificate of Incorporation" and "Business Registration Certificate" (paper copies are also available). With these certificates in hand, your company is basically registered.
So, how can you turn your Web 3.0 idea into reality? The answer is simple: funding. For Web 3.0 projects that seek funding support, rest assured that Hong Kong Cyberport has sufficient funding support. Next, let us tell you how mainland Web 3.0 practitioners can apply for funding from Hong Kong Cyberport, which is also the most important part of this article.
Start-up companies usually go through four stages: "start-up-incubation-acceleration-leap". And Cyberport provides funding support for Web 3.0 practitioners in these four stages, namely: "Cyberport Creative Micro Fund" in the initial start-up stage, "Cyberport Incubation Programme" in the incubation stage, "Cyberport Accelerator Support Programme" in the acceleration stage, and "Cyberport Investment and Entrepreneurship Fund" in the breakthrough stage.
1. Initial start-up funding application to Cyberport (HKD $100,000)
The most important thing to take a Web 3.0 idea from 0 to 1 is to have start-up funding, and Cyberport provides the "Creative Micro Fund" (CCMF), aiming to support the development of innovative and creative digital technology ideas and early-stage start-ups.
Applicants can apply for the Creative Micro Fund in their personal or company name. If applying as an individual, the principal applicant must hold a Hong Kong resident identity card; if applying as a company, the company must be established and registered in Hong Kong.
Currently, the Creative Micro-fund includes 4 sub-plans, which are:
Professional Plan
Hong Kong Youth Entrepreneurship Program
Science and Technology Park Greater Bay Area Youth Entrepreneurship Program
Science and Technology Park University Partner Program
To cater to the needs of different target groups, each sub-program is fully supported by the Creative Micro Fund. It is worth mentioning that participating in the Creative Micro Fund program not only provides cash support, but also access to other support from Hong Kong Science and Technology Park in various aspects of entrepreneurship, such as training, mentorship programs, business consulting, business development and networking, local and global business network support, publicity and promotion support, industry recognition and certification, and support for program graduates. What's more, if you have successfully obtained funding for a Web 3.0 project from the Creative Micro Fund, you will also receive priority consideration for the Cyberport Incubation Program.
It is not an exaggeration to say that successful application to the Creative Micro Fund is the "key" to entering Hong Kong Science and Technology Park. Therefore, understanding the evaluation criteria and procedures of the Creative Micro Fund is crucial for the success rate of Web 3.0 project applications. In terms of evaluation criteria, the application will be reviewed by an independent evaluation committee, which includes venture capitalists, scholars, industry experts, and members of industry associations. The evaluation will be based on the following four criteria:
Quality and capabilities of the project management team (30%)
Operational model and time to market (30%)
Project creativity and innovation elements (30%)
Social Responsibility (10% )
In terms of the review process, all supported projects of the Creative Micro Fund will be selected by an independent review committee composed of members of the Enterprise Development Advisory Group (ECAG), and will be divided into three stages: preliminary screening, review, and brief demonstration. The independent review panel will select the final eligible projects to become recipients of the Creative Micro Fund.
2. Apply for the Cyberport Incubation Programme in Hong Kong (HKD 500,000)
If your Web 3.0 project has successfully passed the "start-up" stage and you wish to receive incubation support from Cyberport in Hong Kong, then you can apply for the "Cyberport Incubation Programme". This programme aims to provide comprehensive support for entrepreneurship and help entrepreneurs and start-ups grow rapidly. Similarly, after joining the incubation programme, Cyberport in Hong Kong will also provide a one-stop entrepreneurship support platform to assist Web 3.0 entrepreneurs in their development.
So, how can a Web 3.0 project apply for the Cyberport Incubation Programme?
Firstly, you need to meet the following eligibility criteria:
A feasible business plan for a product or service that is ready for the market within 12 to 18 months;
The applicant must be a limited company registered under the Companies Ordinance of the Hong Kong Special Administrative Region (or in the process of being established);
The main applicant working for the applicant company cannot be a founder, co-founder, or director of any of the following companies: any company that is currently participating in incubation programmes operated by CMCL, Hong Kong Science and Technology Parks Corporation, or Hong Kong Design Centre and has a similar nature to those programmes (collectively referred to as "Hong Kong Incubators"); any company that has previously served in incubation programmes operated by Hong Kong Incubators and has a similar nature to those programmes.
The founder(s) of the applicant must collectively hold at least 51% of the company's shares or absolute control at the time of application submission and throughout the entire plan period.
Furthermore, there are requirements for the nature of the project, such as being rooted in the field of digital technology and not having received funding from other public funding programs.
Additionally, it is important to note that Web 3.0 projects must be submitted online through the Cyberport Entrepreneurship Management System (EMS) and accompanied by supporting documents (if necessary). The information must be filled out by the main applicant (if a non-corporate applicant) or the directors or shareholders of the applicant (if a corporate applicant), otherwise it will not be processed.
The evaluation criteria for the Cyberport Incubation Program are as follows:
Significant market vitality and contribution to the Cyberport strategic cluster (30%)
Quality and capability of the management team (20%)
Business scalability (20%)
Functional prototype or product that effectively solves practical problems through design (20%)
Innovation (10%)
3. Apply for Acceleration Funding from Hong Kong Cyberport ($300,000 HKD)
After incubation and cultivation, Cyberport has also established a cooperation network with multiple accelerators and provides funding. Applicants of the "Cyberport Accelerator Support Programme" must be currently participating in or graduated from the "Cyberport Incubation Programme" and have successfully obtained admission to an accelerator programme recognized by Cyberport (As of June 16, 2023, Cyberport recognizes 89 global accelerator programmes, which can be accessed through their official website for specific details).
The "Cyberport Accelerator Support Programme" also requires applicants tosubmit their application online, and the form must be filled in English or Chinese with the applicant's name clearly indicated. Online applications must be filled out by the applicant (if an individual) or the director or shareholder of the applicant (if a company). Otherwise, they will not be processed. It should be noted that, unlike other programmes, "Cyberport Accelerator Support Programme" applications and supporting documents must be submitted 5 business days before the start date of the accelerator programme.
4. Apply for Series A or Later-stage Funding from Hong Kong Cyberport (Total Investment of $400 million HKD)
Once the Web 3.0 project successfully completes the acceleration phase and begins to move towards formalization, if there is a desire to achieve rapid breakthroughs and advancements, one can try applying for investment support from the Cyberport Macro Fund (CMF). The total investment amount of CMF is HKD $400 million, with individual investment sizes typically ranging from $1-20 million, mainly used for:
Providing seed project investments and funding for Cyberport digital tech entrepreneurs, up to Series A or later-stage financing, to aid in rapid business development;
Promote the development of the entrepreneurial investment ecosystem in Hong Kong to further expand the entrepreneurial space for digital technology entrepreneurs.
The eligibility criteria for applying for the Cyberport Investment Fund are as follows:
Incubated companies and graduates of Cyberport's entrepreneurial programs
Cyberport Smart-Space companies
Cyberport office tenants
The weightage of the assessment criteria for applying for the Cyberport Investment Fund are as follows:
Comprehensive business assessment, including but not limited to compliance, governance, financial condition, and feasibility of the business
Potential investment return
Actively participate in Cyberport's digital community activities
How to smoothly enter Hong Kong using Cyberport policies
When you have the funds for your Web 3.0 project, the next step is to recruit talents. How can you attract excellent Web 3.0 talents to come to Hong Kong? In fact, Cyberport has provided the "Technology Talent Admission Scheme" to facilitate the entry of qualified overseas and Mainland technology talents for research and development work in qualified technology companies/organizations in Hong Kong. Tenants and incubation companies of Hong Kong Science and Technology Parks Corporation (HKSTP) and Hong Kong Cyberport Management Company Limited (Cyberport) are eligible to apply as long as they are engaged in areas such as artificial intelligence, data analysis, and fintech.
For more details, please refer to the official website of Innovation and Technology Commission, Hong Kong Special Administrative Region, here.
How to obtain office space using Cyberport policies
In fact, Cyberport is the pioneer of the shared office concept in Hong Kong. Its subsidiary, Smart-Space, was launched as early as 2009 and recently introduced Smart-Space 8. Web 3.0 project parties can apply for three types of spaces (office, workstation, and flexible space) online (different types have different costs).
In terms of usage period, Smart-Space offers both flexible terms (minimum of 1 month) and fixed terms (maximum of 12 months) services. It should be noted that applicants must provide key information such as business registration number, company registration certificate, and company website.
Summary
With the booming cryptocurrency market in Hong Kong and the policy support for Web 3.0 and blockchain technology, more and more Mainland Web 3.0 practitioners hope to find development opportunities in Cyberport, Hong Kong. The basic requirement for settling in Cyberport is to register a company in Hong Kong, which is not a complicated process. Cyberport has abundant entrepreneurial resources and provides funding support for Web 3.0 projects. From the initial startup stage to the breakthrough stage, Cyberport offers funding support programs for different stages, providing a good entrepreneurial environment and opportunities for Web 3.0 practitioners.
