Hong Kong's ITVF: What Startups Need to Know About Co-Investment Eligibility
The HK$2 billion Innovation and Technology Venture Fund (ITVF) co-invests with selected VC funds in eligible local I&T startups in Hong Kong.
What Is the Innovation and Technology Venture Fund (ITVF)?
The Innovation and Technology Venture Fund (ITVF) is an initiative set up by the Government of the Hong Kong Special Administrative Region. In 2017, the government established a HK$2 billion fund with the aim of attracting more venture capital (VC) funds to co-invest in local innovation and technology (I&T) startups in Hong Kong.
How Does the ITVF Co-Investment Work?
The ITVF operates through a special-purpose vehicle called “The Innovation and Technology Venture Fund Corporation” (ITVFC). The ITVFC will co-invest with VC funds that are selected as Co-investment Partners (CPs) in eligible local I&T startups (referred to as investee companies).
Who Are the Co-Investment Partners?
Co-investment Partners are VC funds that have been selected to participate in the ITVF program. The ITVF will act as a passive investor, making direct co-investments in eligible local I&T startups alongside these CPs, but only upon invitation from the CPs. This means the CPs identify investment opportunities and invite the ITVF to co-invest.