Original author: Techub NewsSource: mirrorWith just an idea, Hong Kong native entrepreneur Ivan, born in the 1980s, received a subsidy of HKD 100,000 from the Hong Kong government, and subsequent subsidies of millions of Hong Kong dollars are still beckoning to him. Ivan’s project DanceFit wants to combine AI, Web3, and fitness stage social platforms, allowing users to dance on AI-recognized devices, share videos, and earn incentives.All of this is thanks to the Hong Kong government’s support for entrepreneurship in the Web3 field, and Cyberport takes on the responsibility of directly supporting startups. In January 2023, Hong Kong established the “Cyberport Web3 Base” and announced a funding of HKD 50 million in the fiscal budget to accelerate the development of the Web3 ecosystem.On Father’s Day, June 18, Hong Kong Financial Secretary Paul Chan Mo-po wrote that since the establishment of the Cyberport Web3 Base, more than 150 Web3 companies have settled in Cyberport.If you want to establish a Web3 company and smoothly settle in Cyberport to receive more than one million Hong Kong dollars in subsidies, Techub News will help you create a guide.1. Cyberport’s million-dollar subsidyIn September 2022, Ivan had an idea to combine AI, Web3, and fitness dance social platforms, allowing users to dance and share videos on any AI-recognized device while earning rewards.The following month, the Hong Kong government announced a declaration on virtual assets.Ivan also began to organize his entrepreneurial ideas.He invited a friend who knew the policy situation to dinner, talked about his entrepreneurial ideas, and his friend encouraged him to apply for Cyberport’s incubation program. After dinner, Ivan immediately applied for Cyberport’s CCMF (Creative Micro Fund) incubation program on Cyberport’s official website.In January 2023, Hong Kong established the “Cyberport Web3 Base” and announced a funding of HKD 50 million in the fiscal budget to accelerate the development of the Web3 ecosystem.In February, Ivan’s project DanceFit received an interview notice. Out of more than 100 applicants, about 40 projects passed the screening and entered the interview stage, and about 10 projects passed the interview.
“I looked at the list and there are two web3 projects, including mine. Most of the others are from other technology fields. The team background includes people from India, South Korea, and Japan, but most of them are from China,” Ivan told Techub News.
Ivan revealed that he received a subsidy of HKD 10,000 after passing the initial interview.
Cyberport is owned by the Hong Kong Special Administrative Region Government and is committed to nurturing technology talent, supporting startups, and creating a technology ecosystem. Since its completion in 2004, it has brought together 1,900 startups and technology companies, many of which are unicorns, such as Klook and Animoca Brands, as well as GOGOX, which has been listed in Hong Kong.
Ivan told Techub News that in February and March of this year, when everyone began discussing Hong Kong’s policies, many entrepreneurs came to him to ask how to apply for Cyberport’s support.
“Each company can apply for up to HKD 1.3 million in funding without having to give up equity, which is equivalent to free funding.” Linda, who specializes in providing consulting services for companies applying for Cyberport, told Techub News that there are two main types of projects for startups to apply for Cyberport’s support: the Creative Micro Fund (CCMF) and the Incubation Program (CIP).
The requirements for CCMF are relatively low, and as long as there is an idea related to the web3 field, you can apply for funding of up to HKD 100,000. The incubation cycle is six months, with interviews conducted every two months. Funding is granted in stages for successful applicants. HKD 10,000 is granted in the first stage, HKD 45,000 in the second stage, and HKD 45,000 in the third stage.
Ivan told Techub News that his project has already received full support of HKD 100,000.
However, for non-Hong Kong residents, the process is not so smooth. For example, during the process of fund disbursement, you must have a Hong Kong bank account to receive the subsidy. If you miss the incubation cycle, funding will no longer be available.
“If you don’t have a Hong Kong ID, you need to have an office in Hong Kong to open an account, which means the minimum cost of opening an account is to apply for a workspace at Cyberport, which costs HKD 1,780 per month.” Linda told Techub News.
“For things like opening an account, Cyberport will have specialized people to help you with it.” Ivan introduced.
Since the CCMF program is mainly aimed at young entrepreneurs in the early stages of development, applicants must be between 18 and 30 years old. If applying as an individual, you must have a Hong Kong ID card. If applying as a company, team members must be between 18 and 30 years old.
In contrast, the application threshold for CIP is higher.
“CIP wants you to have a clear product business that can be advanced, or at least a product that will be launched within 12 months of successful application, and a 12-18 month marketing plan.” Linda told Techub News.
Therefore, newly established projects can first apply for CCMF, and then apply for CIP after being selected.
CIP’s hard requirements for application include:
1. The applicant must be a company registered in Hong Kong;
2. The project was established less than 7 years before the application;
3. The applicant must hold more than 51% of the company’s shares. If not, a shareholder authorization letter is required;
4. For approved companies, at least one team member needs to be stationed in Hong Kong for 1 year, but does not need to work at Cyberport.
According to the visiting experience of Liu Ye Jinghong, the chief editor of Weisman Notes, if you settle in Cyberport, there will be a 30% attendance requirement, and the attendance rate will be calculated based on the punch-in and punch-out records. It doesn’t require sitting in the office, you can leave after punching in, but the 30% attendance rate is not clearly defined as one week or one year.
“So you can see that there are many vacancies in Cyberport’s office, but they have actually been rented out.” Ivan said.
Entrepreneurs who apply for CIP can receive up to HKD 500,000, and the incubation period is two years, which is distributed in four stages.
Once approved, you can receive HKD 100,000. Passing the first round of interviews will get you HKD 50,000; passing the second round of interviews will get you another HKD 50,000; and once you pass the third and fourth rounds of interviews, you can receive HKD 100,000 at once. There is a 6-month period for each round of interviews.
In addition, if the applying company receives other trophies or awards from other competitions during the incubation period, they will receive an additional HKD 200,000 in funding after the fourth round of interviews.
Furthermore, after the half-year or two-year incubation period ends, entrepreneurs will become graduates, and projects that have graduated within 5 years can also apply for the CASP (Accelerated Support Program), which is specifically designed to help projects expand into international markets and can provide up to HKD 300,000 in funding.
Additionally, there is an MDSS support plan for developing the continental market, with an application for funding of HKD 200,000.
If the project participates in multiple acceleration plans at Cyberport, there is also a funding plan of HKD 200,000 that can be applied for.
Therefore, if a project successfully obtains all applications, it can receive up to HKD 1.3 million in subsidies.
Kong Jianping, a director of Cyberport, said in April that “we have just evaluated a batch of projects at Cyberport, and about a dozen Web3 projects can receive HKD 500,000 in incubation funds.”
On May 24th, hardware wallet OneKey announced that it had received HKD 500,000 in funding from Cyberport and had also been provided with office space by Cyberport.
2. Cyberport Ecosystem
Kelvin Chen, Joint Chairman of the Hong Kong Digital Finance Association and a judge for Cyberport’s incubation program, has shared his criteria for evaluating Web3 entrepreneurship projects: first, innovation accounts for 30%, which depends on whether there are too many similar projects at present; second, application accounts for 30%, whether the project can bring value to Hong Kong rather than being impractical; third, the project’s self-drive accounts for 30%, whether the team has been operating stably for a period of time; and finally, social responsibility accounts for 10%, whether the project has a sense of social responsibility.
Chen said that Web3 entrepreneurship in Hong Kong will not be affected by mainland policies, and that Hong Kong’s move towards becoming a global virtual asset innovation center is a long-term plan.
Yan Diyu, Cyberport’s Director of Fintech, said that although the Cyberport incubation program is only two years long, participating companies, like graduates, do not necessarily leave Cyberport after “graduating”. Many “graduates” still maintain close contact with Cyberport.
Yan believes that because of Cyberport’s resources and the entire ecosystem, it is helpful for their future development. At the same time, these relatively mature companies will also provide a lot of help for their “junior brothers and sisters”, and even directly invest in projects they are optimistic about. For example, Animoca Brands has already invested in more than 300 Web3 projects. This forms an industry ecosystem with endogenous driving force.
Currently, the application for Cyberport funding program has entered the second phase, with a deadline of July 3, 2023. Applicants can sign up on the official website.
3. Choosing to Settle Talent in Hong Kong
The Hong Kong Technology Talent Immigration Scheme refers to the introduction of overseas and mainland technology talents for qualified companies to work in research and development in Hong Kong. After the company applies for a quota, it can apply for a work visa for technology talent within the 24-month validity period.
Linda told Techub News that the threshold for companies settled in Cyberport to apply for the talent introduction plan would be greatly reduced. This can help companies recruit out-of-town employees and provide convenience for them to apply for work visas or Hong Kong identities.
In addition, companies that have applied for the immigration plan for technology talents can also continue to apply for the “Research Talent Pool” subsidy plan. This plan aims to subsidize companies and tenants of Hong Kong Science Park and Hong Kong Cyberport to help them hire research talents for research and development work.
For example, the company will provide 36 months of funding for company researchers, with a monthly salary of HKD 18,000 for bachelor’s degree, HKD 21,000 for master’s degree, and HKD 32,000 for doctorate degree.
“If companies that have passed the CIP plan want to apply for research talent subsidies, it will be relatively easier because companies that have passed the CIP plan already meet the requirements for talent subsidies,” Linda said.
He believes that the talent prices in Hong Kong are high, and subsidies can only help companies reduce their burden, and even cannot cover costs. It is unlikely to make money by relying on subsidies.
“For example, theoretically, a company can hire four doctoral students and receive a subsidy of about HKD 1.53 million in a year, and a subsidy of about HKD 4.6 million in three years. But you should know that the price of four doctoral students in Hong Kong may be more than HKD 32,000 per month.”
Tips:
1. Fill in the application form in English, and choose English for the roadshow, which will directly increase the probability of selection.
2. Write contact information such as email and phone on the application form to prevent being unable to contact.
3. The applicant and the person who signed the contract should preferably be the same person.
4. Companies applying for CIP must have at least one person in the team holding a Hong Kong work visa.
5. The current waiting period of 4 months will be reduced next year.
6. The roadshow time is only 6 minutes, please speak about the important parts.
Like what you're reading? Subscribe to our top stories.
We will continue to update Gambling Chain; if you have any questions or suggestions, please contact us!
