Innovation and Technology Venture Fund (ITVF)

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Objective

The Government has set up a HK$2 billion Innovation and Technology Venture Fund (ITVF) in 2017 with a view to attracting more venture capital (VC) funds to co-invest in local innovation and technology (I&T) start-ups in Hong Kong.

Eligibility

The ITVF, through a special-purpose vehicle "The Innovation and Technology Venture Fund Corporation" (ITVFC), will co-invest with VC funds selected as Co-investment Partners (CPs) in eligible local I&T start-ups (investee company).

An "eligible local I&T start-up" must meet the following criteria: -

1. it was incorporated under the Companies Ordinance within the last seven years with one of its offices (headquarters or regional office) or its main business operation or its key management or leadership team being located in Hong Kong;
2. it and its subsidiar(ies) (if any) have been engaging in I&T business, covering any part of the research and development or production chain in Hong Kong; and
3. it and its subsidiar(ies) (if any) have a total number of employees (including Hong Kong and overseas offices) being less than 250.

Key Features

• Co-investment scheme targeted at eligible local I&T start-ups.
• Matching investment ratio of approximately 1(ITVF): 2 (CP).
• ITVFC"s matching investment ceiling:
  
  1. Aggregate amount of matching investments with a CP not more than HK$400 million;
  2. Aggregate amount of investments in an investee company not more than HK$50 million; and
  3. For each co-investment in an investee company, the matching investment shall constitute not more than (i) 40% of the original total target investment amount sought by the investee company, or (ii) HK$30 million, whichever is the lower.

Co-investment Arrangements

ITVF will be a passive investor, making direct matching investment in the eligible local I&T start-ups concurrently with the CPs upon invitation of the latter.

Assessment

Upon receipt of a CP"s co-investment proposal, the ITVF Secretariat will conduct evaluation in consultation with the ITVF Advisory Committee according to the assessment framework.

Frequently Asked Questions

To learn more about ITVF, please see ITVF FAQs.

• ITVF FAQs.

Others

To learn more about ITVF, please see the following:

• Background of ITVF ((FCR2016-17)67 - Finance Committee of the Legislative Council)
• ITVF Advisory Committee
• ITVF Co-investment Partners
• ITVF Investment Portfolio