ALICE WOODHOUSEalice.woodhouse@scmp.com
PUBLISHED : Wednesday, 30 September, 2015, 5:36pm
UPDATED : Wednesday, 30 September, 2015, 5:37pm
The Next Technologist Entrepreneurial (NxTEC) programme will offer business coaching and help identify investors. Photo: SCMP Pictures
A joint programme by JP Morgan, Hong Kong Science and Technology Park and a network of angel investors will help 200 young companies in the city develop business management skills and make connections to potential investors.
The Next Technologist Entrepreneurial (NxTEC) programme, launched on Wednesday, will provide coaching on business skills and how to identify investors in a plan to help diversify Hong Kong’s economy and create 500 jobs.
“There’s no lack of innovation or creativity [in Hong Kong], but sometimes even if you have a very good product, if you don’t know how to create a sustainable business model, the company’s not going to go anywhere,” said Diana Tsui, JP Morgan’s head of global philanthropy for Asia Pacific.
The financial firm’s JP Morgan Chase Foundation assists small-and medium-sized enterprises to help support economic growth.
Hong Kong Science and Technology Park is teaming up with JP Morgan and angel investors to give local start-ups a boost in a bid to further diversify the city's economy. Photo: SCMP Pictures
The two-year programme will select 20 of the most promising companies for further training including more than 300 hours of consultancy services and mentorship over a six-month period.
Investment in Hong Kong start-ups has been robust in recent years. Some HK$156 million (US$20.13 million) was raised by entrepreneurs in the first five months of 2015 with the aid of HKSTP, compared to HK$200 million for the whole of 2014.
“We believe that continuous talent development and long-term success for technology start-ups will be the powerhouse for the city’s re-industrialisation, which in turn leads to a more vibrant economy with more job opportunities,” said Allen Ma, the CEO of HKSTP.
Hong Kong Business Angel Network, a non-profit organisation, will help connect the selected start-ups with its network of 100 angel investors.
READ MORE: Microsoft, HKSTP invest US$1 million to turn Hong Kong into internet of things hub
Hong Kong’s cautious investor community, who usually feel more comfortable with real estate and financial markets than risk-heavy start-ups, should open themselves more to a broader range of opportunities, said Aumeo Audio founder Paul Lee.
“The whole environment is quite different and quite foreign to them,” Lee said.
He said he had spoken to 200 investors over the last four years and found most of them wary of wading into unfamiliar waters because they are used to the long-term reliability of the housing market, rather than placing their trust in new ventures with little or no guarantees.
“They have to trust you and understand your domain and competitors,” Lee said.
http://m.scmp.com/news/hong-kong/economy/article/1862797/next-technologist-programme-run-jp-morgan-and-hkstp-help-200
