NEST, Hong Kong’s people-focused investment incubator, is a local driving force in developing Hong Kong as a global hub. With a track record in developing consumer lifestyle businesses, NEST takes a hands-on approach with young companies in their seed and start-up phases.
We spoke to CEO Simon Squibb, and he said that NEST has invested HK $30 million into startups, and plan on following suite this year. “We’re following the Y Combinator model from the US and offering capital and support to Hong Kong-based founders and startups,” he said. “We will co-invest with others and expect to push over HK $100 million into the Hong Kong startup scene over the next 18-24 months.”
As NEST is dedicated to backing startups with disruptive ideas, they have recently funded Playto’s growth stage round, a Hong Kong startup that’s developed a “brain train” headset game that can help kids suffering from Attention Deficit Disorder. In the past, NEST backed social food photography app FoodieQuest with about US $130,000 in seed funding and says both founder Ben Hall and app is doing well. After touring the app concept to global events such as TechCrunch, FoodieQuest has gained access to extensive user testing and the app will be launching on the App Store in mid-March.
Besides investing in disruptive ideas, NEST has had a bustling roster of visitors. Following secretory of commerce and economic development Gregory So’s February visit, executive councilor Regina Ip also recently dropped by NEST to meet entrepreneurs and lend her support for private enterprise work within the startup ecosystem. “On many levels now, the Hong Kong Government bodies are getting behind us all in startup land, despite what many ‘naysayers’ say about it,” Simon said. “I believe the Hong Kong Government is making great strides to support the startup ecosystem and they see the huge benefit of building a new pillar to the Hong Kong economy outside of finance and property.”
(Photo: Regina Ip visits NEST)
Having just wrapped up another Pitch Day on March 1st, NEST will be hosting another event on May 10th. Simon remembers that just three years ago, NEST pitch days received about 3-10 applicants. “Most recently we are now receiving some months over 250 applicants and the mix of ideas is huge,” he said. “We do see a lot of 3D printing concepts, Bitcoin-linked ideas, apps, games, eCommerce concepts and even tech retail ideas.”
Besides giving founders a chance to shine on the NEST stage, the startup incubator is also currently working with local founder Jessica Cheung on her equity crowdfunding platform Investable. Heading up the project is NEST’s new CIO Jennifer Carver, who is an angel investor passionate about social venture-type investments. According to Simon, Investable is an example of a startup that’s complimentary to NEST’s array of services.
Along with running operations at NEST, Simon also has 18 years of angel investment know-how under his belt and he offers up advice to Hong Kong entrepreneurs. “My number one piece of advice is to be passion and believe in your idea, yet be humble and open to feedback. If you don’t believe, nobody else will – get others to believe and you’re 50% on your way.” he said. “Focus on the mission and vision of your business and money always follows focus and passion – so don’t chase the money.”
Simon gives his thoughts on a 2014 Bloomberg report citing Hong Kong as the best city to start a company.
Simon will be the third guest at the new Startup Grind Hong Kong on April 1 – register now for tickets.
