Hong Kong is a major trade and financial centre. Its strong capital base and access to the Chinese market provide an attractive hotbed for startups.
AI firm SenseTime and smart handsets developer Tink Labs achieved unicorn status in 2018 after logistics on-demand service GoGoVan becoming the first unicorn one year earlier.
However, the market is still volatile. Despite being backed by global giants such as SoftBank and Foxconn, Tink Labs shut down its operations within a year after passing a $1 billion valuation benchmark.
Total venture capital and technology investments reached $2.3 billion in 2018. Almost 90 percent of the investments made in Technology, media and telecommunication firms. Artificial Intelligence and mobile services are the main attraction points within the technology industry.
Hong Kong private equity industry also has a particular interest in technology and fintech along with healthcare and environmental protection due to the high-demand in mainland China. It is the second-largest private equity market in Asia and hosts 19 percent of the total capital pool in Asia.
MBK Partners, Affinity Equity Partners, CITIC Capital are among the top private equity firms in Hong Kong.