HKSTP deploys first investments from HK$500 million Co-Acceleration Fund

The Hong Kong Science and Technology Parks Corporation (HKSTP) has announced the first four start-ups to receive investment from its HK$500 million Co-Acceleration Fund. The move marks the initial deployment of Hong Kong's first public-private partnership private fund specifically dedicated to the innovation and technology sector.

The announcement took place during the HKSTP Co-Development and Investment Conference, a six-day event held across Hong Kong, Dongguan, and Hangzhou. The first cohort of funded companies includes e-SENSOR, which develops self-powered wireless IoT sensor systems, and Fluvius H2, a firm utilizing biological enzymes for zero-carbon green hydrogen production. They are joined by Akerf Robotics and FST Space.

Bridging the Commercialization Gap

The Co-Acceleration Fund supports start-ups in the pre-Series A to Series A stages, focusing on sustainability, intelligent connected systems, and artificial intelligence. Managed by an HKSTP subsidiary licensed by the Securities and Futures Commission, the fund aims to bridge the critical gap between early-stage academic research and full-scale commercialization by providing both essential capital and strategic industry connections.

With assets under management totaling HK$500 million and backed by nine limited partners, the fund offers significant financial runway for eligible companies, which can receive equity investments of up to HK$15.6 million. The demand for this support is substantial, with the fund having reviewed nearly 1,000 applications to date.

Strengthening the Deep-Tech Ecosystem

This initiative represents a strategic effort by the Hong Kong government and HKSTP to build a more robust financing ecosystem for deep-tech ventures. By employing a public-private partnership model, the fund seeks to reduce investment uncertainty through co-development with corporate partners. This approach allows local start-ups to leverage the manufacturing and scaling capabilities of the Greater Bay Area to facilitate global expansion.

Financial Secretary Paul Chan Mo-po highlighted the synergy of the region, stating that Hong Kong’s strengths as an international financial center, a destination for global talent, and a growing innovation hub complement the Greater Bay Area’s capabilities in advanced manufacturing, commercialization, and scaling.

Future Outlook

As the Co-Acceleration Fund begins its deployment, the industry will be watching how these first four investments scale within the Greater Bay Area's industrial network. The success of these initial partnerships will likely serve as a blueprint for future funding rounds and the continued integration of Hong Kong's financial strengths with mainland China's production capacity. While the total fund capacity is clear, specific investment amounts for each of the four start-ups remain unconfirmed.