First-hand experiences with ITF SERAP programme Hong Kong Government Funding for Start-ups [email_address] @lissovski

Overview and Goals S mall E ntrepreneur R esearch A ssistance P rogramme “ Technology upgrading in the industry, competitiveness of HK" Emphasis on the innovation, IP component Pre-venture capital funding Great for bootstrapped start-ups Funds R&D only Equipment, tools, project staff salaries, other direct costs Won’t pay for office space, marketing, trademarking, etc. Project duration up to 2 years

S mall E ntrepreneur R esearch A ssistance P rogramme

“ Technology upgrading in the industry, competitiveness of HK"

Emphasis on the innovation, IP component

Pre-venture capital funding

Great for bootstrapped start-ups

Funds R&D only

Equipment, tools, project staff salaries, other direct costs

Won’t pay for office space, marketing, trademarking, etc.

Project duration up to 2 years

Eligibility Stand-alone HK incorporated company Less than 100 employees Normally at least two people

Stand-alone HK incorporated company

Less than 100 employees

Normally at least two people

Funding Gov matches Co's contribution dollar-for-dollar Up to HKD 4,000,000 Co contributes cash or manpower Really means cash; cash pays for manpower Quarterly contributions and disbursements Essentially unsecured interest-free loan Repaid from proj-related revenue or follow-on investment 5% of gross revenue 10% of follow-on investment Until fully repaid

Gov matches Co's contribution dollar-for-dollar

Up to HKD 4,000,000

Co contributes cash or manpower

Really means cash; cash pays for manpower

Quarterly contributions and disbursements

Essentially unsecured interest-free loan

Repaid from proj-related revenue or follow-on investment

5% of gross revenue

10% of follow-on investment

Until fully repaid

Application Process – #1: Online Application “ Abstract” – 200 word elevator pitch “ Other Information in Support of the Application” – extended pitch 5-slide “deck” Team, product / innovation, market, opportunity, competition Team CVs Supporting materials Prototype screenshots, mock-ups, etc.

“ Abstract” – 200 word elevator pitch

“ Other Information in Support of the Application” – extended pitch

5-slide “deck”

Team, product / innovation, market, opportunity, competition

Team CVs

Supporting materials

Prototype screenshots, mock-ups, etc.

Application Process – #2: Preliminary Meeting Meet with 2 ITC people for 1-2hrs Must convince/intrigue them Working prototype / proof of concept goes a long way Revisions to the application suggested

Meet with 2 ITC people for 1-2hrs

Must convince/intrigue them

Working prototype / proof of concept goes a long way

Revisions to the application suggested

Application Process – #3: Behind the Scenes ITC people from prelim meeting write a report You don’t see it 2-3 subject matter experts selected from a pool Application might be rejected at this stage

ITC people from prelim meeting write a report

You don’t see it

2-3 subject matter experts selected from a pool

Application might be rejected at this stage

Application Process – #4: The Panel Meet about once a month 20-30 minutes per application Intense Q&A with 2-4 panelists + chairman Market, opportunity, competition, innovation, go-to-market, etc. Panelists far more informed than you might expect Yay/Nay decision same day

Meet about once a month

20-30 minutes per application

Intense Q&A with 2-4 panelists + chairman

Market, opportunity, competition, innovation, go-to-market, etc.

Panelists far more informed than you might expect

Yay/Nay decision same day

Yay. Next Steps Detailed project plan Quarterly milestones with concrete demonstrable progress Itemized expenditures by quarter Funding schedule Separate proj bank account Funding agreement signed Co’s first contribution, first Gov disbursement Off to the races

Detailed project plan

Quarterly milestones with concrete demonstrable progress

Itemized expenditures by quarter

Funding schedule

Separate proj bank account

Funding agreement signed

Co’s first contribution, first Gov disbursement

Off to the races

During the Project ITC Case Officer assigned to the proj Project Coordinator, Deputy Project Coordinator on the Co side Typically quarterly milestones Progress reports online In-person progress meeting Scheduled contributions and disbursements Formal process for project changes

ITC Case Officer assigned to the proj

Project Coordinator, Deputy Project Coordinator on the Co side

Typically quarterly milestones

Progress reports online

In-person progress meeting

Scheduled contributions and disbursements

Formal process for project changes

Project Completion Unused gov funds returned + gov’s portion of proj bank account interest Proj bank account closed Formal audit of the proj bank account

Unused gov funds returned

+ gov’s portion of proj bank account interest

Proj bank account closed

Formal audit of the proj bank account

Observations Application process a significant effort By design Reasonable overhead during the proj ITC people are genuinely there to help you succeed Benevolent bureaucracy Process Mission

Application process a significant effort

By design

Reasonable overhead during the proj

ITC people are genuinely there to help you succeed

Benevolent bureaucracy

Process

Mission

More info http://www.itf.gov.hk/eng/SERAP.asp

http://www.itf.gov.hk/eng/SERAP.asp