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Policy recommendations for the governments of Hong Kong and Shenzhen
Recommendation 1.2 Providing ample funding
for start-ups to nurture them into unicorns

In addition to drawing in star enterprises, more adequate
financing support from the government is necessary for the
development of local unicorns. Biotechnology requires a longer
investment cycle and large amount of capital. Generally, it takes
a biomedical enterprise 10 years and USD 250 millions to launch
a product in the market. Even though both governments in
Hong Kong and Shenzhen have provided generous research
allowances and more mature enterprises can file a listing
application under Cap. 18A at the HKEX, biotech enterprises still
face the challenge of fund shortage during the stage from
prototyping to clinical trials; this is also known as the “valley of
death” (see Figure 13). Given the limitations of conventional
venture capital funds, we suggest that the governments provide
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potential biotech enterprises with sufficient financial support in a a value of HKD 22 billions to establish a system of limited
more effective and innovative manner. partnership / general partnership. The government then provides
funds as a limited partner and assign an independent professional
As proposed in the Foundation’s report “Building the Technology organisation as the general partner to manage the funds on its
Bridge for Scientific Breakthroughs: Developing an Innovation behalf. Part of the funds can be invested in eligible biotech
Hub of the Future”, we advise the Hong Kong SAR Government enterprises in the Loop so as to enable them to develop into
to make the best use of the Hong Kong Growth Portfolio with unicorns in the long run.

45 In 2015, the Hong Kong SAR Government set up “Future Fund” with a provision of HKD 220 billions. In 2020, the government announced that HKD 22 billions of the Fund will be spent on
the establishment of a new portfolio, named “Hong Kong Growth Portfolio”, to make strategic investments in projects with a Hong Kong nexus.
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