BarCamp Hong Kong 2009 -- SERAP Funding for Start-ups

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

Eligibility
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

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.

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

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

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

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

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

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

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

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

BarCamp Hong Kong 2009 -- SERAP Funding for Start-ups

by Andrei Lissovski on Sep 11, 2009

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BarCamp Hong Kong 2009 -- SERAP Funding for Start-ups — Presentation Transcript