Guide to landing Web3.0 in Hong Kong Cyberport: How to receive a subsidy of 1.3 million and a free office?

Landing Web3.0 in Hong Kong Cyberport: How to get 1.3M subsidy and free office?

Ivan revealed that he received a subsidy of HKD10,000 after passing the first-round interview.

The main body of Cyberport is Hong Kong Cyberport Management Company Limited, which is wholly-owned by the Hong Kong Special Administrative Region Government and is committed to cultivating technology talents, supporting start-ups, and creating a creative and scientific ecosystem. Since its completion in 2004, it has gathered 1,900 start-ups and technology companies, many of which are unicorns such as Klook and Animoca Brands, as well as GOGOX, which has already been listed in Hong Kong.

Ivan told Techub News that in February and March of this year, when people began to discuss Hong Kong policies, many entrepreneurs came to him to ask how to apply for Cyberport’s support.

“Each company can apply for a maximum of HKD1.3 million without having to give up equity, which is equivalent to free funding.” Linda, who provides consulting services specifically for companies applying to Cyberport, told Techub News that there are mainly two types of projects for start-ups to apply for Cyberport’s support: CCMF (Creative Micro Fund) and CIP (Incubation Programme).

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The requirements for CCMF are relatively low, as long as there is an idea about the web3.0 field, you can apply, and the funding can reach HKD100,000. The incubation period is half a year, and interviews are conducted every three months. If the interview is passed, funding can be obtained in stages. The first stage is HKD10,000, the second stage is HKD45,000, and the third stage is HKD45,000.

Ivan told Techub News that his project has now received full support of HKD100,000.

However, for non-Hong Kong residents, it is not so smooth. For example, in the process of fund disbursement, you must hold a Hong Kong bank account to receive the payment. If you miss the incubation period, the funds will no longer be disbursed.

“If you are not a Hong Kong resident, you need to have an office in Hong Kong to open an account. This means that the minimum cost of opening an account is to apply for a workstation at Cyberport, which costs HKD1,780 per month.” Linda told Techub News.

“Cyberport will have specialized staff to help you with tasks such as opening an account.” Linda explained.

As the CCMF program mainly targets young entrepreneurs in the early development stage, applicants must be between 18 and 30 years old. If an individual is the main applicant, they must have a Hong Kong resident identity card. If a company is the main applicant, team members must be between 18 and 30 years old.

Compared with CIP, the application threshold for CCMF is relatively low.

“CIP hopes that you have a clear product business that can be promoted, or at least a product that will be launched within 12 months after the application is approved, and a 12 to 18 month marketing plan is required.” Linda told Techub News.

Therefore, newly established projects can first apply for CCMF and then apply for CIP after being selected.

The hard requirements for applying for CIP include:

1. The applicant must be a company registered in Hong Kong;

2. The project was established less than 7 years before the application;

3. The applicant must hold more than 51% of the company’s equity, or obtain a shareholder authorization letter if not;

4. For enterprises that have passed the application, at least one person in the team needs to be stationed in Hong Kong for 1 year, but it is not necessary to work in Cyberport.

According to the visiting experience of Liu Ye Jinghong, the chief editor of the self-media Weissman Note, if you settle in Cyberport, there will be a 30% attendance rate requirement, and the attendance rate will be calculated based on the punching records of entry and exit, and there is no requirement to sit in the office, you can leave after punching the card, but the 30% attendance rate is not clear whether it is per week or per year.

“So you can see that there are many vacancies in the Cyberport office, but in fact they have all been rented out.” Liu Ye said.

Entrepreneurs applying for CIP can receive up to HK $500,000, with a incubation period of two years, which is distributed in four stages.

Once the application is approved, you can receive HK $100,000, and if you pass the first round of interviews, you can receive HK $50,000; if you pass the second round of interviews, you can receive another HK $50,000; if you pass the third and fourth rounds of interviews together, you can receive HK $100,000 at once. There are 6 months for each round of preparation.

In addition, if the application enterprise wins other competitions or awards during the incubation period, they will receive an additional HK $200,000 in funding after completing all four rounds of interviews.

In addition, after the half-year or two-year incubation period ends, entrepreneurs will become graduates, and projects that have graduated for no more than 5 years can also apply for CASP (Accelerated Support Program), which is a plan specifically designed to help projects develop international markets, with an application fund of up to HK $300,000.

In addition, there is also a support plan for developing the mainland market, MDSS, with an application fund of up to HK $200,000.

If the project participates in multiple acceleration plans in Cyberport, there is also a HK $200,000 subsidy plan that can be applied for.

So, if a project passes all the applications, it can receive a maximum of HKD 1.3 million in subsidies.

In April, Kong Jianping, a director of Cyberport, stated: “We have just evaluated a batch of projects at Cyberport, and there are about a dozen Web3.0 projects that can receive HKD 500,000 in funding from the incubation program.”

On May 24, the hardware wallet OneKey announced that it had received HKD 500,000 in funding from Cyberport and was provided with office space by Cyberport.

2. Cyberport ecosystem

Chan Ka-ho, co-chairman of the Hong Kong Digital Finance Association and a judge for Cyberport’s incubation program, has shared his evaluation criteria for Web3.0 start-up projects: first, innovation accounts for 30%, which depends on whether there are too many similar projects at present; second, application accounts for 30%, which depends on whether the project can bring value to Hong Kong instead of being unrealistic; third, self-driving force accounts for 30%, which depends on whether the team has been operating stably for a period of time; and finally, social responsibility accounts for 10%, which depends on whether the project has a sense of social responsibility.

Chan Ka-ho said that Web3.0 entrepreneurship in Hong Kong will not be affected by mainland policies, and that Hong Kong’s advancement towards a global virtual asset innovation center is a long-term plan.

Yan Diyue, director of Cyberport’s fintech division, said that although the Cyberport incubation program only lasts for two years, companies that participate in the program, like graduates, do not necessarily leave Cyberport after “graduating”. Many “graduates” still maintain close contact with Cyberport. Yan Diyue believes that because of Cyberport’s resources and the entire ecosystem, it is helpful for their future development. At the same time, these relatively mature companies will also provide a lot of help to “junior brothers and sisters”, and even invest directly in projects they are optimistic about. For example, Animoca Brands has invested in more than 300 Web3.0 projects itself, forming an industry ecosystem with endogenous motivation.

Currently, applications for Cyberport’s funding program have entered the second phase, with a deadline of July 3, 2023, and applicants can register on the official website.

3. Choosing to settle in Hong Kong

The Hong Kong Technology Talent Immigration Program refers to importing overseas and mainland technology talents for eligible companies to engage in research and development work in Hong Kong. After the company’s application is approved for a quota, it can apply for a work visa for technology talents within the 24-month validity period.

Linda told Techub News that the threshold for applying for the talent introduction plan will be greatly reduced for companies that are stationed at Cyberport. This can help companies recruit employees from other places and provide convenience for them to apply for work visas or Hong Kong identity.

In addition, companies that have applied for the Technology Talent Immigration Scheme can also continue to apply for the “Research Talent Pool” subsidy program. This plan aims to support the incubation companies and tenants of Hong Kong Science and Technology Park and Hong Kong Cyberport, helping them hire research talents for research and development work.

For example, the plan will provide support for corporate researchers for 36 months, with HKD18,000 per month for bachelor’s degree, HKD21,000 per month for master’s degree and HKD32,000 per month for PhD holders.

“If companies that have applied for the CIP plan want to apply for research talent subsidies, it may be easier, because companies that have applied for the CIP plan themselves have already met the requirements for talent subsidies.” Linda said.

He believes that the high price of talents in Hong Kong can only help companies reduce their burden through subsidies, and it may not even cover the cost. It is unlikely to make money by relying on subsidies.

“For example, theoretically, a company can get a subsidy of about HKD1.53 million a year by hiring 4 PhDs, and a subsidy of about HKD4.6 million in three years. But you need to know that the price of 4 PhDs in Hong Kong may be more than HKD32,000 per month.”

Tips：

1. Use English to fill out the application form and choose English during the roadshow, which will directly increase the probability of being selected.

2. Write down contact information such as email and phone number on the application form to prevent being unable to contact.

3. The applicant and the person who signed the contract should be the same person.

4. For companies applying for CIP, at least one person in the team holds a Hong Kong work visa.

5. The current four-month waiting period for review will be reduced next year.

6. The roadshow time is only 6 minutes, please speak the important parts.

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