At first blush, there is a lot in common between Hong Kong and Singapore. Both are small countries with large populations, started as a trading port, and turned into financial hubs. But, looking into the startup ecosystem and communities of both, there are still many similarities, but it seems like Singapore is perhaps 5 years ahead of HK on the development timeline.
Seed Funding
Similar: Both have government funding available along with various ways of helping to incubate or otherwise support startup companies.
Different: In Singapore, if you ask, you can usually get $50K SGD ($300K HKD) for starting a company. In Hong Kong, the best we have at this level is the FFF (Family, Friends, and Fools). If Hong Kong is going to grow a vibrant and robust startup ecosystem, we need to find some way to fill this seed funding gap.
Angel and VC Funding
Similar: There is access to angels and VC funding in both places.
Different: From feedback from several Singapore financiers and entrepreneurs, there is ample seed funding, but it is difficult to find the next round of funding. It seems like this is the reverse in HK, which is why I think making seed funding more available will be quite effective.
Incubation and Mentorship
Similar: There are several programs available in both places and there are mentors in both places.
Different: I think the HK programs at Cyberport and Science Park may be better than what is available in Singapore based on the discussion I had there, however, I think the active mentorship that is available in HK is difficult to access, especially for those in these programs. The incubation programs here are probably great for companies that either have an established business they are building off of, or that have already gotten funding in place. What is lacking is active participation both between the incubators and their companies and also between the incubatees themselves. In Singapore, there is more openness between companies there, especially within incubation programs.
I think there is a very good opportunity for a private incubation program in HK that provides seed funding and mentoring which would compliment the government programs that are available.
Startup Community
Similar: Both locations have active startup companies that have some community connecting them.
Different: It seems like the Singapore community is just better established at this point. I think this also has an effect on the number and quality of startups since you would not get that feedback loop going into a younger startup, which helps to mentor them by example. I think this will continue to improve in HK, but we really have to keep actively pulling together as a community.
Asia as a Whole
Similar: To one extent or another, being in a startup company is not that well supported by families. For instance, in Japan, apparently it is common for young entrepreneurs to hide the fact from their families. It seemed like it is pretty common for many entrepreneurs from the region to have been educated overseas or they are ex-pats.
Different: It seems like each market has varying levels of government support and cultural tolerance to failure. I would guess that as we develop a positive track record for startups in the region, that it will become more accepted, and so many of the other aspects may become easier (ie. it is easier to find Family funding if they know about the company you are founding). Actually, even for me, an American in HK, my in-laws don’t really know that much detail about what I’m doing because my wife finds it difficult to explain it to them.
So, what can help? I think following the Lean Startup methods is a good start. It will help to have people fail in a safe way and find success among the remains of those failures. For HK, it seems like it is building an active community and also making it easier to find seed level funding along with active mentorship.
Thanks for reading this, if you have any different views, please chime in the comments.