From fundraising to immigration, how can Mainland Web3 practitioners settle in Hong Kong Cyberport?

Original Title: "How can Mainland Web 3.0 Practitioners Settle in Hong Kong Cyberport? This Guide Covers Everything from Fundraising to Immigration."

Original Source: METAERA

 The above picture is from: Thestandard

Currently, the cryptocurrency market in Hong Kong is thriving, with frequent government support and positive policies, which has led to confidence among investors and developers in Web 3.0 and blockchain technology. In this booming market, Cyberport, located in the Cyberport district, is becoming the digital technology flagship of the emerging Web 3.0 market in Hong Kong.

The Hong Kong government-owned Cyberport currently has more than 380 fintech companies in different fields, including blockchain, network security, artificial intelligence, big data, wealth management, and trading engineering. Thanks to the Hong Kong government's active embrace of virtual assets, more and more project parties who hope to show their skills in the Web 3.0 field are pouring into the Pearl of the Orient.

So, how can Mainland Web 3.0 practitioners gain a foothold in the space-starved Hong Kong? In fact, Cyberport has ample funding support, talent resources, and venues that Web 3.0 project parties can fully utilize for entrepreneurship and innovation. This guide will provide the most comprehensive assistance.

First of all, it is important to note that currently only companies registered in Hong Kong can apply to settle in Hong Kong Cyberport. So how can Mainland Web 3.0 project parties register a company in Hong Kong? The process is actually not complicated:

What you need to do first is to determine the type of company. Currently, there are two types of companies in Hong Kong: limited companies and guarantee companies. The former has share capital and the legal liability of company members is limited to the unpaid amount of the shares they hold according to the rules in the articles of association. The latter has no share capital, and the legal liability of company members is limited to the amount they promise to pay as company assets when the company is wound up according to the rules in the articles of association. Then, you need to have a company name. The requirements for registering a company name in Hong Kong can be found in the Guide on Registration of Company Names in Hong Kong.

After completing the above two simple tasks, you can access the "e-Registry" of the Hong Kong Companies Registry and submit the application truthfully as required (of course, paper materials can also be submitted offline). If the application is approved, the Hong Kong Companies Registry will send you an electronic "Certificate of Incorporation" and "Business Registration Certificate" (there is also a paper version). With these certificates in hand, the company registration process is basically completed.

So, how can you turn your Web 3.0 ideas into reality? The answer is simple: funding. For Web 3.0 projects seeking financial support, don't worry, Hong Kong Cyberport has sufficient funding to offer. Next, let us tell you how Mainland Web 3.0 practitioners can apply for funding from Hong Kong Cyberport, which is also the most important part of this article.

Startup companies usually go through four stages: "start-up-incubation-acceleration-leap". In these four stages, Cyberport provides funding support for Web 3.0 practitioners, including the Cyberport Creative Micro Fund in the initial start-up stage, the Cyberport Incubation Programme in the cultivation and incubation stage, the Cyberport Accelerator Support Programme in the acceleration development stage, and the Cyberport Investment and Entrepreneurship Fund in the breakthrough leap stage.

The above picture is from the official website of Hong Kong Cyberport.

1. Apply for the initial startup capital (HKD 100,000) from Hong Kong Cyberport for entrepreneurship.

To take the idea of Web 3.0 from 0 to 1, the most important thing is to have startup capital. Cyberport provides the "Creative Micro Fund" (CCMF), which aims to support the growth of digital technology ideas with innovation and creativity, as well as early-stage startups.

Applicants can apply for the Creative Micro Fund in their personal or company name. If applying in a personal capacity, the main applicant must hold a Hong Kong identity card. If applying in the name of a company, the company must be established and registered in Hong Kong.

上图：香港数码港官方网站

Translation:

Image above: Hong Kong Cyberport official website

Currently, the Creative Micro Fund includes four sub-plans, namely:

The Hong Kong Youth Entrepreneurship Program

In order to meet the needs of different entrepreneurial target groups, each sub-plan is fully supported by the Creative Micro Fund. It is worth mentioning that participating in the Creative Micro Fund project not only can receive cash support, but also can obtain support from Cyberport in other aspects of entrepreneurship, such as training, mentorship programs, business consulting, business development and networking, local and global business network support, publicity and promotion support, industry recognition and certification, and support for graduating students. What's more, if you successfully apply for the Web 3.0 project of the Creative Micro Fund, you can also be given priority consideration when applying for the Cyberport Incubation Programme.

Without exaggeration, successfully applying for the Creative Micro Fund is the "key" to enter Hong Kong Cyberport. Therefore, understanding the evaluation criteria and procedures of the Micro Fund is crucial for the success rate of Web 3.0 project applications. In terms of evaluation criteria, the independent evaluation committee will be responsible for evaluating the application, and the evaluation team members include venture capitalists, scholars, industry experts, and industry association members, and will consider the following four standards:

The quality and capability of the project management team (30%)

Business model and time to market (30%)

Project creativity and innovation elements (30%)

Social Responsibility (10%)

In terms of the review process, all recipients of funding from the Creative Micro Fund will be selected by an independent review committee composed of members of the Enterprise Development Advisory Group (ECAG), and will be divided into three stages: preliminary screening, review, and brief presentation. The independent review panel will select the final eligible projects to become recipients of funding from the Creative Micro Fund.

2、Apply for Incubation and Cultivation Program (HKD 500,000) from Hong Kong Cyberport

If your Web 3.0 project has successfully passed the "startup" stage and you are looking for incubation support from Hong Kong Cyberport, you can apply for the "Cyberport Incubation Programme". This program aims to provide comprehensive support for startups and help entrepreneurs and startups grow rapidly. Similarly, after joining the incubation program, Hong Kong Cyberport will also provide a one-stop entrepreneurial support platform to help Web 3.0 entrepreneurs develop.

So, how should Web 3.0 projects apply for the Cyberport Incubation Programme?

Firstly, the eligibility for nomination needs to meet the following criteria:

- Feasible business plan for products or services that are ready to be launched in 12 to 18 months.

- The applicant must be a limited company (or in the process of being established) registered under the Companies Ordinance of the Hong Kong Special Administrative Region.

- The primary applicant for the job cannot be a founder, co-founder, or director of any of the following companies: any company currently participating in an incubation program operated by Hong Kong CMCL, Hong Kong Science and Technology Parks Corporation, or Hong Kong Design Centre (collectively referred to as "Hong Kong Incubators") with a similar nature.

- Any company that previously served any incubation program operated by Hong Kong incubators with the same nature. The applicant's founders must collectively hold at least 51% of the company's shares or absolute control at the time of application and throughout the entire program period.

Secondly, there are requirements for the nature of the project, such as being rooted in the field of digital technology and not having received funding from other public funding programs.

Additionally, it is important to note that Web 3.0 projects must submit their applications online through the Cyberport Entrepreneurship Management System (EMS) at https://ems.cyberport.hk/_layouts/15/AuthenticationPage/Login.aspx and provide supporting documents if necessary. The information must be filled out by the primary applicant (if the applicant is not a company) or the director or shareholder of the applicant (if the applicant is a company) or the application will not be processed.

The weight of the review criteria for the "Cyberport Incubation Programme" is as follows:

Significant market vitality and contribution to the Cyberport strategic cluster (30%) 

The quality and ability of the management team (20%)

Scalability of Business (20%) 

Functional prototypes or products that solve practical problems through design (20%) Innovation (10%)

3、Apply for Acceleration Fund (HKD 300,000) from Cyberport Hong Kong

After incubation and cultivation, Cyberport has also established a cooperative network with multiple accelerators and provided funding. Applicants for the "Cyberport Accelerator Support Program" must be currently participating or graduated from the "Cyberport Incubation Program" and have successfully obtained recognition from Cyberport's accelerator program (as of June 16, 2023, Cyberport has recognized 89 global accelerator programs, which can be queried through the official website).

The Cyberport Accelerator Support Programme also requires applicants to submit their applications online through the website. The form must be filled out in either English or Chinese, and the applicant's name must be clearly stated. Online applications must be filled out by the applicant (if an individual) or the applicant's director or shareholder (if a company), otherwise they will not be processed. It should be noted that unlike other programmes, the Cyberport Accelerator Support Programme requires applications and supporting documents to be submitted five working days before the start date of the accelerator programme.

4、Apply for Series A or later-stage funding from Hong Kong Cyberport (a total investment fund of HKD 400 million)

Once the acceleration is successfully completed, the Web 3.0 project gradually moves towards standardization. At this point, if you are eager to achieve breakthroughs quickly, you can try to apply for Cyberport Macro Fund (CMF) for investment and entrepreneurship support. The total investment amount of Cyberport Macro Fund is HKD 400 million, and the usual single investment scale is between 10 million and 200 million yuan, mainly used for:

- Provide seed project investment and A-round or later stage financing to digital technology entrepreneurs in Cyberport, helping companies achieve significant business growth.

- To promote the development of Hong Kong's entrepreneurial investment ecosystem and further expand the entrepreneurial space for digital technology entrepreneurs.

The qualifications for applying for Cyberport Investment and Entrepreneurship Fund are as follows:

- Incubation companies and graduates of Cyberport's entrepreneurship program.

- Cyberport Smart-Space Company

- Digital Harbor Office Tenant

The weight of the review criteria for applying to Cyberport Investment Fund are as follows:

- Comprehensive business assessment, including but not limited to compliance, governance, financial status, and feasibility of business.

- Potential investment return

- Actively participate in Cyberport's digital community activities.

How to smoothly enter Hong Kong using Cyberport policies

When your Web 3.0 project has funding, the next step is to recruit talent. How can you attract excellent Web 3.0 talent to Hong Kong? In fact, Hong Kong Cyberport has provided the "Technology Talent Admission Scheme", which aims to import overseas and mainland technology talents for eligible technology companies/institutions to engage in research and development work in Hong Kong through fast processing arrangements. Tenants and incubation companies of Hong Kong Science and Technology Parks Corporation (HKSTP) and Hong Kong Cyberport Management Company Limited (Cyberport) are eligible to apply as long as they engage in businesses such as artificial intelligence, data analysis, and financial technology.

For details, please refer to the official website of the Innovation and Technology Commission of the Hong Kong Special Administrative Region here.

How to use Cyberport policy to obtain office space

Cyberport is actually a pioneer of the shared office concept in Hong Kong. Its subsidiary, Smart-Space, was launched as early as 2009. Recently, Smart-Space 8 has been launched, and Web 3.0 project parties can apply for office, workstation, and flexible space in three types of venues (different types have different fees) online.

Regarding usage time, Smart-Space offers two types of services: flexible (minimum of 1 month) and fixed (maximum of 12 months). It is important to note that the applicant must provide key information such as a business registration number, company registration certificate, and company website.

Summary

With the booming development of the cryptocurrency market in Hong Kong and policy support for Web 3.0 and blockchain technology, more and more mainland Web 3.0 practitioners hope to find development opportunities in Hong Kong Cyberport. The basic requirement for settling in Cyberport is to register a company in Hong Kong, and the registration process is not complicated. Cyberport has abundant entrepreneurial resources and provides funding support for Web 3.0 projects. From the initial start-up stage to the breakthrough stage, Cyberport provides funding support plans for different stages, providing a good entrepreneurial environment and opportunities for Web 3.0 practitioners.

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