‘Make it simple, easy’ to attract angel funds

By the Editorial Team · Monday, October 12, 2026

Hong Kong is struggling to attract enough angel investment funds, with only about 100 active funds compared to Shenzhen’s 400, limiting early-stage startup growth in the city. To address this, regulatory reforms by HKEX and initiatives like HKEIA’s upcoming matchmaking event aim to simplify fundraising and boost Hong Kong’s competitiveness as a hub for emerging businesses.

Hong Kong faces challenges in attracting angel investment funds, an important component for nurturing early-stage start-ups, according to Samson Tam Wai-ho, honorary chairman of the Hong Kong Electronic Industries Association (HKEIA). Currently, the city hosts around 100 active angel funds, significantly fewer than Shenzhen's approximate 400 funds, and trails behind other global hubs like Shanghai and the United States.

Tam highlighted that the relative scarcity of angel funds and early-stage investors weakens Hong Kong’s capital market ecosystem and limits its appeal to emerging start-up founders. He emphasized that making it easier for angel funds to realize returns through public listings or mergers and acquisitions is critical to incentivizing investment.

“In the US, it is very easy for companies to go public, which is why there are many angel funds and start-ups,” Tam explained. He proposed simplifying fundraising processes for promising new ventures to attract more angel investment and encourage start-ups to establish operations in Hong Kong.

Efforts to improve the environment for early-stage fundraising have gained momentum, with Hong Kong Exchanges and Clearing (HKEX) initiating reforms aimed at streamlining market access. In September, HKEX issued a consultation paper suggesting a reduction of the post-listing waiting period for spin-off companies from three years to one year, alongside proposals to lower the number of transactions requiring shareholder approval. Market analysts interpret these measures as steps designed to increase Hong Kong’s competitiveness as a listing destination.

Founded in 1980, HKEIA represents approximately 300 corporate members, including major listed firms such as Lenovo, VTech, and Gold Peak Technology Group. The association supports the development and international growth of Hong Kong’s electronics and technology sectors and collaborates with government initiatives aligned with the city’s five-year development plan.

To further connect start-ups with potential investors, Tam underscored the need for more targeted matchmaking activities. As part of these efforts, HKEIA will host a Future Industries Zone at the upcoming Electronic Fair from October 13 to 15 at the Hong Kong Convention and Exhibition Centre in Wan Chai. The event will feature a showcase of 100 leading pioneers in emerging industries, with around 30 of these companies arranged to meet with angel investors, family offices, and institutional investors.

“Hong Kong has already been very successful in helping large innovative companies to raise funds in the stock market and bond market, but it needs to also help more smaller players to raise funds and go global,” Tam said, underscoring the need to balance support across different stages of corporate growth.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.