Let’s say you have organized a successful fundraiser to raise money to support the impactful work of your organization or partner organizations. People from within and outside your network have poured in generous donations for your cause. Because the fundraiser was successful and the donations essential to the continuous operation of your organizations or partner organizations, you will probably want to organize a fundraiser again.

Cultivating Donor Relationships

How do you get people interested in supporting your cause again? 

One of the best ways is to provide transparency in how the donations were spent and what kind of impact was enabled by the donations. This can be done through an impact report. In addition to expressing gratitude to the donors, the impact report also enables you to retain your relationship with existing donors and develop new relationships with potential donors.

Demonstrating Organizational/Program Effectiveness 

With more funders transitioning to trust-based philanthropy, a comprehensive review of how donations are making a difference is more important than ever for organizations to effectively fundraise to ensure their financial resilience. 

A fundraiser impact report offers an overview of the goals, objectives, and outcome of the fundraiser. This provides donors with the knowledge that their donations are efficiently spent on worthwhile causes. Additionally, the report enables (potential) donors, volunteers, partners and collaborators etc. to learn more about the organizer, its mission and impact, and its efficiencies of donation utilization. This could attract potential donors and partners to support the organization and its initiatives. 

When communicating the impact of your fundraiser, you want to include both qualitative and quantitative data. For example, in addition to reporting the number of people benefiting from the funded projects, you should also include testimonials from the beneficiaries about the projects.

Transparency and Accountability 

An impact report provides donors with insight into how their contributions were used and the positive impact created as a result. Through clearly communicating program outcomes, financial management, and the organization’s/project’s overall impact, you can build trust and credibility with your donors.

What are the Key Components of a Fundraiser Impact Report? 

Introduction

In the Introduction section, provide a brief overview of the fundraiser: 

• What are its goals and objectives?
• Who was it organized by?
• When and where did it take place?
• What is the total amount of funds raised (amount allocated for grant)?
• Who/what are the beneficiaries?
• What is the total number of beneficiaries?/What is the total benefit?

Organization/ Project Description

If your fundraiser was held to raise funds for your organization or a particular project, describe it in detail. This section is especially important for a fundraiser supporting multiple projects and organizations. 

Let’s use FSI’s 2023 Annual Holiday Fundraiser as an example. In the impact report, you can see a detailed breakdown of each of the six funded projects all over the world. Each project description includes:

• Timeline of the project
• Location of the project
• Organizer/manager of the project
• The reason it receives funding: the credentials of the organizer/manager of the project, the solutions it offers to address challenges in the community
• The amount of funds allocated to the project
• What the funds were spent on
• The number of beneficiaries
• Photos and/or videos of the project
• Testimonials from the beneficiaries and organizer/manager of the project
• Links to the organizer/manager’s website and/or contact information and social media

Financial Transparency

Provide a breakdown of how donations were allocated in as much detail as possible to provide transparency. For an example of how to do this, please refer to the “Funds Raised” section in the FSI 2023 Annual Holiday Fundraiser Impact Report.

Acknowledgments and Conclusion

Don’t forget to thank the people who made this fundraiser possible! These people include the donors, the volunteers who help with data collection and drafting the impact report, the funded organization(s)/project(s) for doing the impactful work they do etc. 

Take the “Conclusion” section as an opportunity to call for action for future donation and support. Invite funders, partners, and collaborators to join your next fundraiser to create even greater shared impact, for example.

Data Collection and Prep Work for the Impact Report 

Now that you know what needs to be included in the impact report, you should have a clear idea of the qualitative and quantitative data you will need to collect to compile a comprehensive impact report. Here are some tips to help you plan your workflow: 

•  Work with your colleagues to list out the different kinds of data and metrics you will need to collect. 
• Think about how you will collect the data and metrics, and discuss division of labour with your colleagues. 
• Brainstorm the time needed for each and all tasks, and draft a timeline to hold everyone accountable for their work tasks and deadlines.
• Include regular check-ins with the FSI team, which can be done online or in person. Take these check-ins as meetings for progress updates or raising whatever queries you may have about your work.

PS!

FSI recently published our 2024 Annual Holiday Fundraiser Impact Report. Check the report out and use it as a reference!

At FSI, we’re always seeking to improve, so if you have any feedback on this guide/template, please do not hesitate to let us know.

The post A Guide to Compiling a Fundraiser Impact Report appeared first on Foundation for Shared Impact.

Table of Contents

A Checklist for Fund-Seeking Startup Founders

This guide is a checklist of deliverables that startup founders should prepare for to secure external funding to scale their businesses. Specifically, this guide targets startups in their earliest stages of development and financing: Pre-Seed, Seed, and Series A.

This founder’s checklist for early-stage fundraising is the second of our 3-part startup fundraising series. If you are not sure which stage of funding you are at, check out Part One using the link below!

Part One: Identify Your Startup’s Funding Stage

Guide to the Different Stages of a Startup

1) Pre-Seed Funding

Here is where you, the startup entrepreneur, raise the funds necessary to set up all initial priorities which are important to your business’s short-term objective of achieving a product-market fit (PMF). Pre-seed is not typically considered to be an official funding round, however, it is arguably one of the most important inflows of capital, especially for industries with high startup costs. Pre-seed funds are usually funneled towards MVP (Minimum Viable Product) development, market research, prototype testing & feedback, as well as licensing and IP.

Pre-Seed Funding Checklist:

1. A scalable, competitive, and innovative idea

Scalable, competitive, and innovative businesses are very attractive to investors for their high-profit margins and long-term growth potential. Ask yourself the following questions:

a) Is your idea highly scalable, and possesses a sustainable competitive advantage?

b) Is it innovative and takes advantage of advanced technology?

c) Can it successfully address a market need, improve on existing concepts or solve a pain point in a particular industry?

d) So clearly defined to the point where you can explain it to someone effortlessly?

If your answer to all 4 questions is a resounding ‘Yes’, then it is likely that you have a great business idea on which the foundation of your startup is built. If you are most uncertain, this may be a sign for you to revisit your drawing board, critique every aspect of your idea and ask for feedback from as many people as possible.

• Study the feasibility of your business idea

2. Establish a core founding team

It is important to assemble a core team of members who share a common goal in the company’s short-term and long-term successes. Once the team is established, create an organizational chart to effectively determine the control, reporting, and decision-making authority of each core member. Next, determine the founder(s)’ title, responsibility, and compensations, as well as the equity divisions of each core member. Finally, delegate preliminary roles to each member fitting their expertise, and in a way that is complimentary as a whole.

• The most important startup roles to immediately fill
• Steps to build a startup org chart
• Functionly’s org chart builder tool
• The ideal tech startup team structure

3. Release & Optimize your Minimum Viable Product (MVP)

A Minimum Viable Product (MVP) is simply the first iteration and version of your final product containing only its very basic features. Your MVP is an essential pre-seed deliverable as it allows you to test your business idea using minimal cost and effort to gather responses from the target market, then pinpoint improvement areas for product development. After creating your MVP, release the product into the market as soon as possible so that you can test its usage with potential customers and obtain their feedback via interviews, questionnaires, etc. Finally, implement and adapt any necessary customer feedback into the next iteration of the product’s development cycle.

• Steps to developing your MVP

4. Register your business

To protect the founder(s)’ personal assets, the company must be registered as a properly incorporated business entity as early as possible, while adhering to all state and local requirements. Startups are usually registered as an S corporation, C corporation, or LLC (Limited Liability Company). Wisely choose an appropriate business name, then secure the relevant website domain name and social media handles for future marketing and operational efforts. Last but not least, do not forget to print out business cards to professionally exchange contact information.

• Which type should you incorporate?
• Steps to registering your startup in Hong Kong
• Apply now to register your business in Hong Kong

5. Early administrative setup

In your first administrative setup, open a company bank account and obtain an Employer Identification Number as early as possible in your startup journey. It is also very helpful to establish an efficient accounting & bookkeeping system early on to track business cash flow and finances, as well as for convenient tax-filling. Some of the best accounting software used by Hong Kong businesses are Sage, Xero, Osome, QuickBooks, SunSystems, and Express Accounts.

• Read our guide on Opening Bank Accounts in Hong Kong

6. Protect your Intellectual Property (IP)

With the right type of intellectual property protection, you can prevent other people from stealing your designs, inventions, brand name, and more. There are 4 main types of IP: patents, copywriting, trademarks, and trade secrets.

• Why are IP rights important for startups?
• Guide to IP rights in Hong Kong

7. Create a website

Set up an excellent website, and relevant social media accounts and begin to build your brand presence. Your initial website should comprise an About Us page, contact information, site menu/ navigation bar, core services & pricing, online ordering, customer testimonials, and the company blog. As part of your marketing efforts, we recommend you enhance your website traffic through paid advertising with Google Analytics and Google Ads, search engine optimization (SEO) with Google Search Console, as well as social media such as Facebook and Instagram.

See below the list of guides that may be helpful for you:

• How to create a website with Wix
• Guide to Using Google Analytics Report for Your Business
• How to set up Google Ads and Conversion Tracking
• Guide to Google Ads for Leads
• Guide to Google Ads for Ecommerce
• Guide to SEO using Google Search Console

8. Define your Product-Market Fit (PMF)

The Product-Market Fit (PMF) is the gold standard every startup strives to achieve and is identified by many as key to a business’ long-standing success. To put it simply, PMF is an ideal scenario where a product satisfies and is in high demand by its target market. The key is to identify your target customer profile and deliver underserved customer needs. At PMF, the company’s target customers are buying, using, and telling others about the product in numbers large enough to sustain that product’s growth and profitability.

• The definition and importance of PMF
• Steps to gradually achieve PMF

This step also involves planning a revenue model & marketing strategy through which you aim to deliver maximum value. As the business develops, it is important to remain agile and flexible enough to deviate from the original plan if necessary. Writing a long business plan is not a priority for startups. Instead, focus on creating your MVP, conducting market research, developing a great investor pitch, and preparing detailed financial projections.

• Don’t waste time on a startup business plan. Do these 5 things instead.

9. Develop your investor pitch

Before asking for a single dime, you should first do a thorough calculation of the startup’s potential burn rate to estimate the amount of funding you will ask for. Consider one-time, labor, and overhead costs such as office rent, utilities, etc. Last but not least, the entrepreneur should always have an elevator pitch prepared & be ready to proficiently deliver it at any moment’s notice.

• Guide to pitching your business
• Calculate your startup costs
• Questions by angel investors to prepare for
• Tips for effective public speaking

2) Seed Funding

After laying the initial groundwork for your startup, it is time to really get your idea off the ground in the developmental seed stage. The seed (financial support) is planted and fostered to grow into an adult plant using sufficient water, sunlight, and oxygen (revenue, shrewd persistence, and strategic business planning). Seed capital is intended to grow a fully validated business idea into a revenue-generating entity and tends to be funneled towards enhancing the PMF and pushing your MVP into the competitive marketplace, in addition to more market R&D.

Seed Funding Checklist:

1. Promising & passionate founders

Generally, investors are attracted to passionate founders with financial skin in the game, meaning that he or she has successfully raised initial capital by investing through personal funds or bootstrapping. There is no scorecard that can accurately detect ‘promising’ entrepreneurs, but founders with a high probability of success tend to possess strong execution skills, well-built plans with specific targets, and most of all, a harmonious organizational structure. One of the main roles of a founder is to understand and make decisions based on the realities of customer needs, market trends, and financial constraints. And since startups are fast-growing, it is important for entrepreneurs to learn how to expertly balance the line between too much planning and too little.

• What do VCs look for in a founder?
• Founder/ Co-Founder insights

2. 2nd administrative set-up

The second operation and administrative set-up are to purchase an appropriate business insurance coverage plan as a risk transfer, as well as establish industry-specific permits such as business licenses & location.

• The basics of startup insurance
• Business licensing in Hong Kong
• Business tax obligations in Hong Kong

3. Generate a Capitalization Table

A capitalization table, or cap table, provides investors with a concrete picture of company ownership. The table comprises information such as the percentage equity of the company owned by the founders, employees, and investors, thereby giving insight to the company’s decision-making structure.

• Generate a cap table using this template (also contains Series A Cap Table template)

4. Improve your investor pitch

At this stage, you should continue to focus on optimizing your minimum viable product and refining your product-market fit. To prepare for Seed stage funding, you will need to develop an increasingly comprehensive, indefensible & updated investor pitch and business strategy. Investors need proof of a significant market size and competitive advantage. Furthermore, it is also time for you to prepare and develop a clear exit strategy, which is a plan that tells investors and equity holders how and when they can receive a potential return on their investments. It is essential to substantiate your strategy via thorough financial projections, such as ROI (Return On Investment) analysis and 2/3/5-year proforma financials (income statement, balance sheet, cash flow statement).

• Guide to pitching your business
• Guide to the different types of startup exit strategies
• Steps to planning your exit strategy
• ROI analysis

3) Series A Funding

After the seed stage comes Series A, often referred to as the make-or-break stage. This is because successfully surmounting the stage gap between the seed and series A is one of the most challenging parts of establishing a startup venture. During this funding stage, startups are expected to hit all of their near-term milestones whilst retaining their focus on long-term revenue growth and profitability. Series A funds are used to address capital needs such as hiring, marketing, and operations. These funds are also funneled towards scaling the production of a commercially viable product and building a substantial target consumer base to prove that the company is angled in a favorable position toward sustained growth.

Series A Funding Checklist:

1. Find a suitable VC

There are many different venture capital firms, and each of them tends to target a specific industry sector, company stage, or geographical location. Thus, it is necessary to research and understand which VC to approach by understanding the criteria of their investment focus. Many founders actively create connections to VCs, such as through professional networking, startup networking groups, accelerators, and mentoring programs.

• Guide to navigating VCs
• List of Hong Kong-based VCs

2. Complete due diligence of all important documents

Before seeking Series A investments, complete an up-to-date and in-order due diligence of corporate records, general business, legal matters, financial documents, contract details, IP, assets, and employee information.

• Series A Diligence Checklist for Founders

3. Demonstrate traction and long-term profitability using financial evidence

VCs tend to favor profitability and sustainability over growth when it comes to analyzing a company’s success potential. Can you successfully demonstrate that your business strategy is not only viable, highly scalable, and fast-growing but is also positioned toward long-term profitability? Can you prove that your business has latent demand, sufficient traction, and, promising unit economics? To show that you are a promising candidate for Series A investment, words are not enough. You will also need to provide evidence of financial progress through quantitative and quantitative growth metrics. This is to prove that you are generating a steady stream of revenue and growing an established customer base.

4. Demonstrate PMF, Product Differentiation (PD), and Value Proposition (VP)

Have you achieved a product-market fit (PMF)? Does your business successfully demonstrate product differentiation (PD)? What is your value proposition (VP)? When you find that your business meets all 3 criteria, you will see tangible results through strong retention rates (low customer churn), increased pricing power, as well as increased upselling/ cross-selling opportunities. Read more below to understand each criterion:

a) PMF is achieved when a product concept is validated in the target market through consistent organic consumption and word-of-mouth promotion.

• How to measure & know that you have successfully reached PMF

b) PD is a differentiating factor, or economic ‘moat’, which can contribute towards a sustainable and long-term competitive advantage.

PD is a way that companies can ‘protect’ profit margins and their share of the market. When a product is commoditized, like sugar, computers, and cloud storage, competitors tend to offer similar value and thus, minimal product differentiation. This results in low growth opportunities because competition will be based on pricing rather than product value. As a result, startups have to embrace innovation and achieve differentiation on their products to escape the commodity trap. Even successful brands, such as Apple and Microsoft, are continuously reinventing their PD to remain competitive.

• The types, factors and steps to develop PD

C) VP is the extent to which a product is valuable and needed by customers.

A product’s VP can be measured by the duration of existing customer relationships and past customer attrition rates. Customer attrition represents the number of customers lost by a company, and this is inevitable. A healthy customer attrition rate may indicate that the product is offering sufficient value to its customers. On the other hand, excessive attrition rates should be addressed, since the cost of retaining a customer is far less than acquiring a new one and this highlights a critical weakness in the company’s product and services.

• How to write a good VP statement
• Value Proposition canvas template

5. Expand your team

At this stage, you can consider expanding your team by hiring more personnel to support your growing operations. Begin researching for professional help, such as experienced lawyers and accountants, to outsource some key roles. In the early stages of a startup, hiring freelancers or consultants as specialized experts is often prudent to minimize expenses. Last but not least, manage labor legislations, employee benefits & insurance compensation coverage for your employees.

Read below some helpful guides:

• Guide to Hiring Your First Employee in Hong Kong
• Labour legislation and employers’ obligation in Hong Kong
• How to enroll your employees in MPF (Mandatory Provident Fund) schemes in Hong Kong

Are You Prepared to Begin Your Startup Fundraising Journey?

This founder’s checklist for early-stage fundraising is only the second of our 3-part startup fundraising series. For more information on startup funding options in Hong Kong, go to Part 3 with the link below!

Part Three: Your Guide to Applying for Startup Funding in Hong Kong

Guide to Startup Funding Options in Hong Kong

Please share any feedback you may have!

What did you find helpful, or how can we improve? What other kinds of resources do you think we should be providing?

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The post A Startup Founder’s Checklist for Early-Stage Fundraising appeared first on Foundation for Shared Impact.

The Steps to Growing Your Startup

This guide aims to introduce you to the different stages of a startup’s journey, from its early formation to its venture-funded growth and finally, its late stages or exit phase.

A startup is one of the many types of entrepreneurial ventures in the world, but what is it exactly?

A startup is conventionally defined as a high-growth and highly-scalable venture intended to grow large beyond its founding team into a profitable corporation. In the long term, they possess expansive dreams to not only compete but disrupt large and established companies. A startup’s most defining characteristic is speed and growth. For this reason, startups often have high starting costs and demand funding from external sources in order to support their fast-paced research, development and operations.

Is your startup’s primary objective to create social impact?

If your business is primarily intent on achieving social goals, with financial objectives coming at a close second, then it is more accurately referred to as a social enterprise. Social enterprises are private commercial entities that reinvest their profits into social programs instead of paying out dividends to external investors. To understand how you can secure external funding for your social enterprise in Hong Kong, click the link below!

A Social Entrepreneur’s Guide to Funding in Hong Kong

Identify your startup’s funding stage

The table below briefly demonstrates each stage of VC funding. In terms of funding and development, which stage is your startup currently at?

Venture Capital Funding

One of the most suitable and common types of external funding for post-seed startups is through venture capital (VC) investments. VC firms raise money from limited partners and use it to invest in promising startups in exchange for a minority stake in its portfolio company. A startup’s ‘survival’ can be measured by its success in raising the next sequential round of capital, or its success in exiting the VC funnel, for example, via an IPO (Initial Public Offering) or acquisition.

As you can see from the diagram above, a startup’s survival rate at increasing funding rounds tends to follow a declining funnel-like distribution. But there is a silver lining: The further along you are, the more mature your company is and the more likely you are to succeed.

Early & Growth Funding Stages

The first three phases of capital-raising in startups are mainly the pre-seed, seed, and Series A funding stages. Fundraising in the early stages is usually necessary to drive the growth of the startup, validate a business plan and optimize the product, instead of being funneled into scaling and commercial expansion.

Pre-seed Funding

Potential investors you can explore:

• Founders’ personal funds
• 3Fs (Friends, Family, Fools)
• Early-stage angel investors
• Non-institutional, Industry-specific private investors
• Accelerator programs
• Others: Small business loans, Crowdfunding

Typical amount raised: US$50,000-250,000

Seed funding

Potential investors you can explore:

• Angel investors
• Early-stage VCs
• Incubators & startup accelerators: https://hkstartupsociety.hktdc.com/en/resources/funding-and-incubation-schemes

Typical amount raised: <US$5 million

(P.S. Conservative is good. Just because you can raise a certain amount of money at the seed round, doesn’t always mean that you should!)

Series A funding

Potential Investors:

• Venture capitals
• Equity crowdfunding

Typical amount raised: US$2-15 million

Later Funding Stages

Once you As Twitter co-founder Biz Stone once said, “Timing, perseverance, and 10 years of trying will eventually make you look like an overnight success.”

Series A is only the beginning of the venture capital equity funding process, followed by Series B, Series C, and so on. What can you expect from these subsequent rounds of funding?

Series B funding

This next funding stage may see around US$7-10 million being raised from venture capital firms, often by the same investors who led the previous round. A significant amount of this money will be dedicated to expanding your startup’s team and target customer base.

Series C funding

Securing this stage of investments not only indicates that your company is ready to develop new products and expand into wider (or international) markets, but also represents the final push to prepare for an IPO or acquisition. Valuation at this stage is not founded on financial projections, but on hard data points such as your current revenue and existing number of customers. This funding stage may not only come from venture capital firms but also private equity firms, banks, and hedge funds.

Series D funding

While Series C is often the last round raised by a startup, a few may choose to raise an additional Series D round if they desire to remain private for longer or to further increase their valuation before going public.

Now, Are You Ready to Begin Preparing for Fundraising?

This guide is the first of our 3-part startup fundraising series, followed by “A Startup Founder’s Checklist for Early-Stage Fundraising” and “Guide to Startup Funding Options in Hong Kong”.

Please share any feedback you may have!

What did you find helpful, or how can we improve? What other kinds of resources do you think we should be providing?

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The post Guide to the Different Stages of a Startup appeared first on Foundation for Shared Impact.

A Guide for Fund-Seeking Social Entrepreneurs

This guide aims to prepare the founders of social enterprises in securing external funding that is required to scale and expand their businesses.

Is my business a social enterprise?

A social enterprise is one of the many types of entrepreneurial ventures in the world, but what is it exactly?

In the simplest terms, a social enterprise is any business with social objectives. A social venture exists at the intersection of a traditional volunteer charity and a private commercial company, where it seeks to maximize not only profits but social impact as well. Common examples around us are your neighborhood’s food co-op store, the Salvation Army family store, and coffee shops that hire employees from disadvantaged communities. Instead of paying dividends to shareholders, these businesses reinvest their generated profits back into their social goals. As a result, social ventures can be non or for-profit as long as their main purpose lies in promoting social change or environmental well-being.

• Different types of social enterprises

Social Enterprise Funding Options in HK

If you are a social enterprise with goals revolving around sustainability, social innovation and environmental protection, here are the funding options available for you in Hong Kong, curated by FundFluent:

Early-Stage Social Enterprises

1. Impact Incubator
2. Good Seed to fund product development
3. Innovator Farm – Prototype to fund market launches
4. Innovator Farm – Start-Up for social innovation projects
5. BEHub – Prototype to fund underprivileged social entrepreneurs
6. BEHub – Start-Up

Post-Revenue Social Enterprises

1. GTF (Green Tech Fund) to fund green tech R&D
2. The Innovation and Technology Fund for Better Living
3. Recycling Fund – Enterprise Support Programme
4. ECF (Environment and Conservation Fund) to fund environmental conservation projects
5. SADF (Sustainable Agricultural Development Fund) to fund sustainable agriculture R&D

About FundFluent

FundFluent is a data platform that helps small businesses access funding. The platform brings the opportunities for grants, loans, and financing visible in one place.

Small businesses, startups, social impact businesses, and nonprofits are using FundFluent to get matched with funding options, as it also helps with structuring your documents and data for easier funding applications. Access Hong Kong’s most extensive list of small business-friendly funding options now!

How to get started

Accessing funding information and checking eligibility is a free service on the FundFluent platform.

1. Create your free account here – link
2. Browse funding options
3. Submit information or documents to check for an eligibility check
4. Access funding, grow your business

The team is always happy to chat, and you can contact them on WhatsApp directly here.

More guides for fund-seeking entrepreneurs:

• Guide to the Different Stages of a Startup
• A Startup Founder’s Checklist for Early-Stage Fundraising
• Guide to Startup Funding Options in Hong Kong

Please share any feedback you may have!

What did you find helpful, or how can we improve? What other kinds of resources do you think we should be providing?

Email (Optional)

Please let us know your email if you'd like us to follow up with you or contact you separately!

Submit

The post A Social Entrepreneur’s Guide to Funding in Hong Kong appeared first on Foundation for Shared Impact.

Where to Apply for Startup Funding in Hong Kong?

Hong Kong’s startup investment ecosystem has grown significantly over the past decade. In fact, it is actively encouraged through progressive regulatory policies, R&D support and financial hiring assistance. As a result, there are multiple public and private funding schemes in Hong Kong which provide an ideal platform for startups to rapidly grow and expand. Luckily, FundFluent has helped us summarize below a list of funding options available for Hong Kong-based startups!

This guide to startup funding options in Hong Kong is the last one to complete our 3-part startup fundraising series. If you haven’t yet read Part 1 and Part 2, view it first here!

Part One: First, Identify Your Startup’s Funding Stage!

• Guide to the Different Stages of a Startup

Part Two: Second, Get Prepared for Funding with our Checklist!

• A Startup Founder’s Checklist for Early-Stage Fundraising

Early-Stage Startup Funding Options in HK

If you are an early-stage startup looking for an incubation program or financial grants in order to bring your company from ideation to launch, here are the funding options available for you in Hong Kong, curated by FundFluent:

From idea to launch

1. CCMF (Cyberport Creative Micro Fund Professional Programme)
2. CCMF-HKYEP (CCMF Hong Kong Young Entrepreneur Program) for 18-30-year-olds
3. GBA Young Entrepreneurship Program (Cyberport Greater Bay Area Young Entrepreneurship Programme)
4. HKSTP Ideation

Incubation programs

1. CIP (Cyberport Incubation Programme)
2. HKSTP Incubation for technology startups
3. HKSTP Incu-bio for biomedical technology startups
4. TSSSU (Technology Startup Support Scheme for Universities)

Post-Seed Funding Options in Hong Kong

Now that you have launched and your startup has progressed into a post-revenue business with a strong focus on growth and scaling, you will have to look for a slightly different set of funding sources. Take a look at the list below, curated by FundFluent, of post-seed funding options dedicated to supporting the R&D and market expansion of Hong Kong-based startups:

Technology startups (with R&D spending)

1. RTH (Research Talent Hub) for R&D in tech companies
2. ESS (Enterprise Support Scheme) for R&D in private sectors
3. PRP (Partnership Research Programme) for partnerships between industry & R&D centres
4. PSTS (Public Sector Trial Scheme) for later-stage R&D
5. STEM Internship Scheme to facilitate the hiring of STEM students

Startup growth & expansion

1. BUD – Mainland Program (Dedicated Fund on Branding, Upgrading & Domestic Sales) for HK business expansion into Mainland China
2. BUD – FTA & IPPA Programs to facilitate the worldwide expansion of business operations
3. EMF (Export Marketing Fund) to extend the market reach of small & medium-sized businesses beyond HK
4. TVP (Technical & Vocational Training Program) to aid technology adoption in small local businesses

About FundFluent

FundFluent is a data platform that helps small businesses access funding. The platform brings the opportunities for grants, loans, and financing visible in one place.

Small businesses, startups, social impact businesses, and nonprofits are using FundFluent to get matched with funding options, as it also helps with structuring your documents and data for easier funding applications. Access Hong Kong’s most extensive list of small business-friendly funding options now!

How to get started

Accessing funding information and checking eligibility is a free service on the FundFluent platform.

1. Create your free account here – link
2. Browse funding options
3. Submit information or documents to check for an eligibility check
4. Access funding, grow your business

The team is always happy to chat, and you can contact them on WhatsApp directly here.

Please share any feedback you may have!

What did you find helpful, or how can we improve? What other kinds of resources do you think we should be providing?

Email (Optional)

Please let us know your email if you'd like us to follow up with you or contact you separately!

Submit

The post Guide to Startup Funding Options in Hong Kong appeared first on Foundation for Shared Impact.

Introduction to the SME Export Marketing Fund

What is the SME Export Marketing Fund?

The SME Export Marketing Fund (EMF) aims to encourage small and medium enterprises (SMEs) to expand their markets outside Hong Kong by providing financial assistance to SMEs for participation in export promotion activities. This is a governmental scheme under the Trade and Industry Department (TID).

• General info here: https://www.smefund.tid.gov.hk/english/emf/emf_update.html
• Guide to Application (as of Jun 2022): https://www.smefund.tid.gov.hk/english/emf/files/EMF_Guide_Eng.pdf
• Link to the official FAQ page: https://www.smefund.tid.gov.hk/english/emf/emf_faq.html

Key Facts on the Funding Scheme

• Each application should cover expenses in relation to one promotion activity.
• Funding is on a 50:50 matching basis (EMF fund supports up to 50% of the budget, and no less than 50% should be contributed by the enterprise), or HKD 100,000, whichever is less.
• Applicants can submit a number of applications separately (there’s no limit), but the cumulative limit is HKD 800,000.
  • Maximum of 50% of the cumulative limit can be used for applications in relation to setting up/ enhancing the corporate website / mobile application.
• For each application, video/product shooting and editing services are capped at 50% of the total approved funding per application.
• Fund disbursement: You can opt-in for Initial Payment (75% of the approved funding, as of June 2022) or Reimbursement basis for the disbursement of funds.
  • Reimbursement: The application should be submitted within 60 calendar days after the completion date of the promotional activity
  • Initial Payment: The application should be submitted within 45 to 120 calendar days before the commencement date of the promotional activity. If your application is successful, the applicant must submit a corresponding application for the final payment within 60 calendar days after the completion date of the promotional activity.
• The initial processing of the application takes ~ 30 working days, where the result will be notified by ordinary post to your business address.

Contact Information

• Address of the SME Export Marketing Fund Branch Service Counter: Room 1301, 13/F, Trade and Industry Tower, 3 Concorde Road, Kowloon City, Hong Kong
• Service Counter operating hours for receiving applications:
  • Monday to Friday: 0845 to 1230 and 1330 to 1745 (Lunch break from 1230 to 1330)
  • Closed on Saturdays, Sundays, and public holidays.
• Contact: (Tel) 2398 5127 (Fax) 2391 2646/ 3525 0329 (email) emf_enquiry@tid.gov.hk

Eligibility and Funding Scope

Applicant’s Eligibility

• Applicant: Any non-listed enterprises registered in Hong Kong, those with documentary evidence proving their substantive business operations in Hong Kong at the time of application.
  • Non-profit-making or non-profit-distributing organizations are NOT eligible for this scheme.
  • If the applicant has previously received funding support under EMF, the cumulative amount of funding received so far must not exceed the prevailing cumulative funding ceiling (refer to the below section for more details on the ceiling)
  • If the applicant should not be the organizer/ co-organizer/ service provider of the promotional activity that the applicant is requesting funding for in this application.

Funding Scope

EMF funding is for SMEs to promote their own products and/or services outside of HK. The covered scope of such promotional activities includes the below. Note that #8-9 may be especially useful for businesses who are looking to promote their products and services online to overseas customers.

1. Trade exhibitions held outside Hong Kong, targeting markets outside Hong Kong.
2. Trade exhibitions held in Hong Kong, targeting markets outside Hong Kong (please refer to part (i) under this webpage for more detailed requirements).
3. Trade exhibitions held in Hong Kong, targeting the local market (please refer to part (ii) under this webpage for more detailed requirements).
4. Online trade exhibitions (please refer to part (iii) under this webpage for more detailed requirements).
5. Business missions outside Hong Kong (please refer to part (i) under this webpage for more detailed requirements).
6. Online business missions (please refer to part (ii) under this webpage for more detailed requirements).
7. Advertisements on trade publications that mainly target markets outside Hong Kong.
8. Export promotion activities (such as placing advertisements, keyword search, listing product information, setting up or enhancing online shops, etc.), conducted through electronic platforms/media and mainly targeting markets outside Hong Kong (please click here for more detailed requirements).
9. Setting up or enhancement of a corporate website/mobile application owned by the applicant enterprise which mainly targets markets outside Hong Kong (please click here for more detailed requirements).
10. Fee charged for video/ product shooting and editing services in relation to the promotion of the product and/or the services, for any of the above activities (not as a standalone video that is not related to the eligible promotional activities listed above)

Funding Conditions

1. Because this scheme intends to support the SMEs in HK to export their products and services overseas, applicants must participate in these promotional activities as an HK enterprise. This means that their full name, HK contact information, etc. should be publicly displayed on their websites, media, mobile applications, etc.
2. The activity covered in the application must be related to the business of the applicant itself. The applicant must promote only its own products and/or services in the activity.

Eligible Expenses

For the full list of the eligible expenses under EMF, please refer to the official website here. In this guide, we would like to highlight the expenses in relation to online promotional activities.

The rule of thumb to remember is to make sure the expenses are non-recurrent in nature. Any expenses to cover daily operations, including salaries for sales, maintenance fees for the website, sales commission, etc. are not eligible

• Export promotion activities conducted through electronic platforms/ media
  • Fee for placing advertisements and keyword searching on online platforms/ media
  • E.g. Listing a product advertisement on Facebook, YouTube, Google, or any other platforms
  • Note that the expense should be non-recurrent and for the purpose of listing products/services for sales purposes.
  • Expenses in relation to the normal operation and sales activities are not covered.

• Setting up / enhancing the website/ mobile application
  • Non-recurrent fee for setting up or enhancing the applicant’s corporate website and/or mobile application.
  • Expenses in relation to the normal daily operation and maintenance of the website and/or the mobile application are not covered. Examples of such non-eligible expenses are:
    • Fees paid to external marketing agency fees for SEO, email marketing, etc.
    • Domain fees and server costs for daily operation and maintenance
    • Fees for translation and copywriting

• Video/ product shooting (in conjunction with the eligible promotional activities covered under EMF)
  • The video/ shooting should be created in conjunction with an EMF-eligible promotional activity (#1-9 of the “Funding Scope” above), not as a standalone video. Therefore, the video should bear the full company name of the applicant.
  • The amount of funding support for video/ product shooting for each application should be no more than 50% of the total approved funding per application.

Preparing for Application

Application & Vetting Process

• Application is open all year round, on a rolling basis.
• Link to the application form (as of Jun 2022): https://www.smefund.tid.gov.hk/english/emf/files/Appn_EMF.pdf
• Applications are submitted online, through the e-Form service. Please click here for the “Online Application Demo”.
• Once the applications are submitted, note that you also need to submit the “Declaration for Application / Application Record” – which can be done from the digital portal or by post.
• TID will conduct a preliminary check on your e-submission and send you a “Notification of Receipt of Application” containing the application number by email upon receipt of your complete and valid Application with the required supporting documents. Under normal circumstances, TID will complete the processing of a valid application within 30 clear working days from the date of receipt of the duly completed application accompanied by all necessary documentation.

However, based on experience, do note that the back and forth process with TID to submit the “complete application” with all the necessary documentation proof can easily take 4-6 months.

Supplementary Documents

Below are the required supplementary documents to be submitted by all applicants.

General

• Business Registration (make sure that the BR includes the payment record)
• Latest Annual Return (NAR1)
• A copy of a valid Hong Kong Identity Card or Passport of the person signing the application form for and on behalf of the applicant enterprise

Proof of substantive business activity of the applicant in HK

• In addition to the above, because EMF is for HK SMEs to export overseas, the applicant must identify itself as an HK enterprise – this means that TID will likely request proof of display of your full company name and HK contact information (e.g. address, telephone number, fax number) on your advertisements, electronic platforms/media, and corporate website/mobile application.
  • Example: a snapshot of your Facebook profile or your website’s footer and/or contact page including such information

Proof of the promotional activity targeting outside of HK

• In considering whether a corporate website/mobile application mainly targets markets outside Hong Kong, TID will make reference to various factors, including how the corporate website/mobile application can facilitate the applicant enterprise’s export promotion, type of language used, content, function, and proof of the applicant enterprise’s export business, etc.
• In general, for an advertising campaign on Facebook and Google to be considered as mainly targeting markets outside Hong Kong, the number of local visitors/downloads of the advertising campaign should not exceed 30% of its total number of visitors/downloads. The operator of the platform/media concerned should provide statistics on the geographical distribution of visitors/downloads on the relevant electronic platform/media to prove the credibility of the platform/media concerned and that it is mainly targeting markets outside Hong Kong.
• See below example of a Facebook Geographical Report printout that was required by an applicant before, to prove the breakdown of the countries targeted in a Facebook Ads.

For an application for initial payment & final payment

• (For a first-time application for initial payment): you need to submit a signed funding agreement along with the “Declaration for Application/ Application Record” form over post, via drop-in box, or in person within one week of submission.
• Original receipts/certified true copy16 of each receipt of the deposit paid and the relevant booking confirmation/signed contracts/invoices/quotations (showing detailed contact information of the issuing organization) if payments for the declared expenditure items have not been made in full upon application for the initial payment. The name of the payer shown on the receipt(s)/documents must be the same as the name of the applicant enterprise. Original receipts/certified true copies of each receipt of payments specified in (vii)(a) should be submitted upon a corresponding application for final payment.

For an application for reimbursement

• Original receipts/certified true copy of each receipt in relation to payments made by the applicant enterprise for declared expenditure items, plus a copy of each of the relevant invoices/ quotations/ contracts (showing detailed contact information of the issuing organization). The name of the payer shown on the receipt(s)/documents must be the same as the name of the applicant enterprise.
• Credit card or bank statement to show the expense being credited out from your business account.

Additional Supplementary Documents You Should Prepare

If you are submitting an application for online promotional advertisements (e.g. Facebook, Google) and/or video and editing services for the advertisements, consider if you need to provide the additional supplementary documents listed below.

• Hiring a third-party vendor?
  • If you are hiring a third-party vendor to provide video/ editing services, or for setting up/ enhancing the corporate website or mobile application, this section is relevant to you.
  • Written quotations from vendors should be obtained prior to the award of the contract if the project price is over HKD 2,000**.** The lowest conforming quotation should have been chosen unless otherwise justified.
  • At least 2 quotations are required for project price from over HK$2,000 to HK$50,000; 3 quotations for project price from over HK$50,000 to HK$300,000; 5 quotations for project price from over HK$300,000 to HK$1,400,000; and public tender is required for project price over HK$1,400,000.
  • Contract with the vendor for the project arrangement, showing company information of the service provider with details of the services provided and breakdown of fees charged. The contract should include the full name of the applicant enterprise as well as the contact information and enterprise information of the service provider.

• Is your application for enhancing or creating corporate web pages and/or mobile applications?
  • A printout of the relevant corporate webpages or screen dumps of the relevant corporate mobile applications updated or created (with the date of printing)
  • The pages or the mobile application should show the applicant’s full company name, products/services provided, as well as Hong Kong contact information.
  • The registration details of the relevant website and the domain name
  • For mobile applications – the date of publication and areas/countries available for download on the app store(s) are required.

• Any video created or edited by a third-party vendor?
  • A colored copy of or a link to the final output is required. The full name of the applicant enterprise and information on the activity name should be shown on the final output where appropriate.

Tips & Best Practices

• Please make sure that you do read the Guide to Application thoroughly prior to making a submission. Given the time required for TID to review your application, let alone the time needed for any additional back and forth communication, we learned by heart that it is absolutely critical to submitting a good complete application from the beginning.
• Note that any original documents submitted from the applicant to TID over post can be returned, if requested by the applicant.
• Should you have any amendment or request to withdraw the application post submission, note that you need to do so in writing. If there are any material changes to the application, these should be consulted with TID as well.

There are a lot of supplementary documents to prepare in advance – so we advise you to keep track of them in an organized manner. To save the administrative time, we recommend you prepare sufficient information in one go at the start, rather than waiting for TID to provide you feedback and advice on a piecemeal basis.

Post-approval process

If your application is approved by the government, you will receive a Notification Letter via ordinary post. For the applicants requesting an initial payment, the Funding Agreement should be signed and returned to the SME EMF Branch.

• TID will sign the Funding Agreement and return a copy, together with the cheque for the approved funding.
• Note that for initial payment cum final payment, the applicant needs to provide additional documents within 60 days of the activity completion date to show that the remaining budget was expensed as part of the promotional activity.

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The SE Directory

What is the SE Directory?

The SE Directory (Social Enterprise Directory) is a list of SEs vetted and registered by the Social Enterprise Business Centre (SEBC) in Hong Kong, sponsored by the Home Affairs Department. Given that there is no legal definition of and registration system for social enterprise in HK, the SE Directory serves as one of the recognised channels for the public to look for information on social enterprises.

The Social Enterprise Business Centre (SEBC) has been compiling and publishing the SE Directory every year since 2007, via its website and mobile applications (iOS: https://goo.gl/h1S9tC & Android: https://goo.gl/htHiHr). Through the SE Directory, SEBC strives to build a systematic social enterprise searching platform, and promote it to all sectors in order to enhance the publicity of social enterprises in Hong Kong. To this date, over 10,000 booklets have been issued, and the search engine and the mobile application have seen extensive use of more than 2,800,000 views and 5,900 downloads respectively.

Link to SEBC here: Social Enterprise Business Centre

What is the benefit of being registered in the SE Directory?

• Fundraising: as the SE Directory is endorsed by the Government, sometimes there are funding applications that are open exclusively or targeting the SE Directory registered social enterprises.
• Business Support: SEs listed in the SE Directory are eligible for a range of discounted or free business support, directly provided by our Centre’s corporate partners. As of 2021 Oct, the covered areas included: legal (Thomas Reuters Foundation, PILnet), accounting (KPMG), banking and insurance (Marsh, DBS bank), HR, marketing, design and production, software and equipment, etc. Browse the relevant webpage for more details.
• SEs Gift Certificate: SEs Gift Certificate, launched in 2014 by our Centre, is popular among big corporations and anyone keen on supporting the local community (e.g. vouchers to staff, for guests on special occasions, etc.). To date, it can be used in more than 100 social enterprises, local shops, and organic and fair-trade sales points in Hong Kong; and redeemed at 7 points – and by Asia Miles! If you would like to increase sales and expand your customer base by accepting SEs Gift Certificate at your SE, after you are registered with SE Directory, you can join the ‘Social Enterprise Gift Certificate Program’.

Application Process

Eligibility – the Listing Criteria

• The applicant shall be registered under the laws of the HKSAR, and have a business that has been in operation for one year or longer
• The applicant should serve one or more social objectives
• No less than 50% of its annual income was generated from direct sales
• If the applicant is not granted tax exemption under section 88 of the Inland Revenue Ordinance, it should fulfill the below criteria, and will be required to sign the Declaration Statement to declare that during the business’s past two years of operation –
  • Only 35% or less of its profit was distributed to its shareholders
  • The business’s assets purchased or possessed were not transferred to other companies or individuals.

Submit the Application Form

If you are eligible, visit the Download page to access application forms and other related information, and submit your application with all of your supplementary documents at sebc@hkcss.org.hk. See below for the required documents.

Listing Application on SE Directory

• Application Form (PDF file) – mandatory for all applicants
• Application Form (Word file) – mandatory for all applicants (same as above PDF file)
• Declaration Statement (PDF file) – for non-S88 entities only
• Declaration Statement (Word file) – for non-S88 entities only (same as above PDF file)

Document checklist (if applicable)

1. Certification of tax exemption under section 88 of the Inland Revenue Ordinance (if applicable)
2. Proven documents of the registration under Society Ordinance, Co-operative Society Ordinance, or The Companies Ordinance
3. Valid Business Registration Certificate (if applicable)
4. Memorandum of Association/Constitution of the organisation
5. The latest independent audit report

From our experience, note that SEBC may ask for additional supplementary information such as your SE’s logo files, the SE introduction in Chinese, Product/service introduction in Chinese, 3-4 service or product photos, etc. as a follow up request after your initial submission.

(For existing listees) Update the SE Directory Information

For SEs already listed that want to update your information in the Directory, complete and submit the information update form to sebc@hkcss.org.hk.

• “SE Directory” Information Update Form (PDF file)
• “SE Directory” Information Update Form (Word file)

Processing and Review

• SEBC accepts SEs’ applications to be listed on a rolling basis.
• After your application submission, SEBC may reach out to you to schedule a phone (or face-to-face) interview. From our previous experience, the entire vetting process including the interview, review of the application, and the request for additional information – takes around 3 months.

Other Information

Other than SEBC, there are other channels that recognise social enterprises. For example:

• “SEE Mark” introduced by the Hong Kong General Chamber of Social Enterprises, featured online platform “SE Gallery” powered by ET Net under Hong Kong Economic Times
• “SE Award Scheme” organised by Home Affairs Bureau and Social Enterprise Advisory Committee
• The Enhancing Self-Reliance Through District Partnership Programme (ESR Programme) by the Home Affairs Department and “Enhancing Employment of People with Disabilities through Small Enterprise” Project by the Social Welfare Department, etc.

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Introduction to the BUD Fund

What is the BUD Fund?

The BUD (Branding, Upgrading, and Domestic Sales) Fund scheme is to support individual Hong Kong enterprises in undertaking projects to develop brands, upgrade and restructure their business operations and promote sales in the Mainland and economies with which Hong Kong has signed Free Trade Agreements (FTAs) and Investment Promotion and Protection Agreements (IPPAs).

• In a nutshell, the BUD Fund is suitable for an “exporting” purpose – targeting one (or many) of the jurisdictions in the scope of FTA and IPPA to actively market and sell the enterprise’s products and services.

Access more general info here: https://fta.bud.hkpc.org/en

View BUD’s Guide to Application here: https://fta.bud.hkpc.org/en/content/application/

Link to HKPC’s Tips for Application: https://fta.bud.hkpc.org/en/content/cases-dissemination

Eligibility

• Applicant: All non-listed enterprises registered in Hong Kong, those with documentary evidence proving its substantive business operations in Hong Kong at the time of application.

• Jurisdictions in Scope: With effect from February 14, 2022, the BUD Fund “FTA and IPPA Programme” covers applications for undertaking projects to develop the markets of ASEAN (i.e. Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam), Australia, Chile, the four member-states of the European Free Trade Association (i.e. Iceland, Liechtenstein, Norway, and Switzerland), Georgia, Macao, New Zealand, Austria, Belgo-Luxembourg Economic Union, Canada, Denmark, Finland, France, Germany, Italy, Japan, Korea, Mexico, the Netherlands, Sweden, and the United Kingdom.

• Project Scope: The BUD Fund has two types of funding scheme:
  • Type (I) Developing a holistic business plan: Projects that involve the engagement of qualified service providers by the applicants to develop holistic business plans in the areas of branding, upgrading and restructuring, and/or promoting sales for the applicants to enhance their competitiveness and facilitate their business development in the FTA Markets – in a nutshell, funding for consultation service.
  • Type (ii) Implementation of specific measures: Under Type (ii), there are three scopes of measures as shown below. One project can include multiple areas.

• Note that there may be constraints depending on the types of measure you apply for, for example, if your project is ONLY on Upgrading & Restructuring, you need to have a registered legal entity in the targeting FTA jurisdiction.

Key Facts on the Funding Scheme

• Funding on 50:50 matching basis (BUD Fund supports up to 50% of the budget, and no less than 50% should be contributed by the enterprise)
• The government will provide full funding support for the audit fee of the approved project, capped at HK$10,000 per audit which will be counted towards the cumulative funding ceiling per enterprise.
• The cumulative funding ceiling per enterprise under the Mainland and the FTA and IPPA Programmes is HK$7,000,000 (including audit fee – last updated in Nov 2022), while the funding ceiling for each approved project is HK$1,000,000 (including audit fee).
• One enterprise can submit multiple concurrent applications for multiple projects, but the projects cannot overlap with other government-funded projects (e.g. TVP) and all projects have to be new (not commenced) ones.
• During the tenure of the Programme, funding support will be granted to each enterprise for a maximum of sixty approved projects (both Mainland Programme and FTA and IPPA Programme included).
• Project Duration: 24 months maximum
• Fund disbursement: You can opt-in for Initial Payment (75% of the approved funding, as of Mar 2022) or Reimbursement basis for the disbursement of funds.

Preparing for Application

Application & Vetting Process

• Application is open all year round, on a rolling basis.
• Under normal circumstances, HKPC, upon consulting IDC and PMC on the assessments, will complete the processing of a valid application within 60 clear working days from the date of receipt of a complete application accompanied by all necessary documentation proof and clarifications as requested by HKPC.
  • However, based on experience, do note that the back and forth process with HKPC to submit the “complete application” with all the necessary documentation proof can easily take 4-6 months.

Tips & Best Practices

1. Thoroughly read the Guide to Application to learn the eligible expenses and non-eligible expenses. For example, there are funding constraints on some budget items as below:
   • Advertising costs cannot exceed 50% of the whole funding
   • Existing staff salary cannot be funded. We can hire new staff for the project purpose only. Direct hire salary cannot exceed 50% of the whole funding
   • Other caps exist on website building, mobile applications, etc.
   • Make sure you read the application thoroughly to assess your project’s applicability from your perspective and judgment.
2. Once you have a good idea of your proposal, draft up the application form and try to book a consultation with HKPC.
   • Call, or write a concise email to: (852) 2788 6088, bud_sec@hkpc.org to briefly explain your proposal and your main budget plans to double confirm the eligibility.
3. When you apply, make sure you’re attaching all the required supplementary documentation to reduce the time spent on clarification & additional requests. Also, make sure you are providing the latest available documents.

Note that a lot of below do not seem ‘mandatory’ in the application portal, hence not deemed necessary. However, we learned from experience that it would be better to prepare and submit these in advance – if the portal is running out of submission space, you can reach out to HKPC via email to submit additional documents.

Supplementary Documents

Below are the supplementary documents we suggest you submit from Day 1 (including but not limited to the ones directly asked in the submission platform) to reduce processing time:

• Copy of Business Registration (with the digital payment record), and the Certificate of Incorporation (make sure the business information such as name, address, etc. are consistent across the documentation.)
• Copy of documentary proof of the shareholders on the Annual Return (NAR1)
• Proof of substantive ongoing business, supported by:
  • Documentary proof of latest 6 months’ MPF record summary list with employee names
  • 5-6 sets of latest 6 month’s business transaction documents such as purchase order, invoice, bank in receipt, etc.
  • Copy of tenancy agreement or lease agreement of the registered office
  • Documentary proof of the applicant’s annual sales turnover – e.g. if your sales activity happens digitally, a copy of the Stripe payments and invoices, etc.
• Latest signed auditor’s report
• Additional information on the business such as the customer types

Post-approval process

If your application is approved by the government, you will receive a Notification Letter via email. Once you receive the Letter, it takes another 4 weeks for HKPC to send you the Funding Agreement letter to finalise the process.

• You will be assigned a Project Manager for this purpose, and you should be able to modify the project start & end date accordingly if the timeline has changed.
• Make sure that you are aware of all the post-approval and post-project obligations on progress reporting, auditing, and record retention.

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