Innovation and Technology Venture Fund

Innovation and Technology Venture Fund (ITVF) in Hong Kong is a government-established fund with a capital of HK$2 billion, launched in 2017 to attract venture capital investments into local innovation and technology startups. In 2024, HK$1.5 billion was redeployed to optimize the fund by setting up joint funds with the market on a matching basis, focusing on startups in strategic industries.

Objectives:

• To co-invest with venture capital funds in local I&T startups.
• To stimulate growth in strategic industries: artificial intelligence and data science, life and health technology, and advanced manufacturing and new energy.
• To strengthen Hong Kong’s I&T ecosystem by supporting startups that contribute to local economic development.

Target Beneficiaries:

• Eligible local I&T startups incorporated within the last seven years.
• Companies with offices, main operations, or key management in Hong Kong.
• Startups with fewer than 250 employees globally.
• Companies that commit to spending at least 50% of the investment in Hong Kong operations.

Key Features:

• Fund Manager Model: Selected fund managers set up limited partnership funds, with government contributing HK$1 for every HK$3 raised from the market.
• Co-investment Model: ITVF co-invests alongside selected Co-investment Partners (CPs) at a ratio of approximately 1:2.
• Investment caps include HK$400 million aggregate per CP, HK$50 million per investee company, and a maximum of 40% or HK$30 million per co-investment.
• ITVF acts as a passive investor, evaluating proposals with an advisory committee.
• Investments must focus on Hong Kong’s I&T ecosystem, with at least 50% invested in Hong Kong companies or those with significant Hong Kong operations.

Application Process:

• Fund manager selection was completed by March 19, 2025.
• Co-investment proposals are invited from CPs and evaluated by the ITVF Secretariat and Advisory Committee.
• Interested parties can contact the Innovation and Technology Venture Fund Secretariat for enquiries.

This fund aims to leverage private sector investment to boost innovation and technology development in Hong Kong, focusing on strategic sectors and fostering local economic growth.