Background
The Innovation and Technology Venture Fund ("ITVF"), established in 2017 with a capital of HK$2 billion by the Government of the Hong Kong Special Administrative Region ("Government"), aims to foster investment in innovation and technology ("I&T") start-ups in Hong Kong. The ITVF has successfully co-invested (via The Innovation and Technology Venture Fund Corporation ("ITVFC")) with selected venture capital funds as co-investment partners at a matching investment ratio of approximately 1(ITVF):2(co-investment partner), leading to over HK$330 million invested in 40 local I&T start-ups since making its first investment in early 2019.
In the 2024 Policy Address, it was announced that HK$1.5 billion will be redeployed by the ITVF to set up funds jointly with the market, on a matching basis, to invest start-ups of strategic industries ("ITVF enhanced scheme"). This initiative seeks to attract additional private investment and improve the start-up ecosystem in Hong Kong.
This alert provides an overview of the ITVF enhanced scheme, and the application as a fund manager of the proposed funds under this ITVF enhanced scheme.
Invitation for Applications
Eligible firms, including venture capital and asset management companies, are invited to apply to become fund managers for the ITVF enhanced scheme. Selected managers will be responsible for establishing the proposed fund ("Proposed Fund") for the purpose of the ITVF enhanced scheme, raising capital that is not contributed by any entity that is ultimately controlled, directly or indirectly, by the Government ("Non-Government Capital"), managing operations of the Proposed Funds, and identifying investment opportunities, providing support to the investee companies and producing quarterly reports to the limited partners.
Government's Commitment
The Government, as one of the limited partners of the Proposed Funds, will commit HK$1 into the Proposed Fund for every HK$3 of Non-Government Capital raised by the selected managers, with the Government's total commitments ranging from HK$150 million to HK$250 million for each fund.
Eligibility of a Fund Manager
Eligibility of a Proposed Fund
Annex 1 - Key Terms Applicable to all Partners of the Proposed Fund
Annex 1 - Key Terms Applicable to the Government as the LP of the Proposed Fund
Application Procedures
Applications must be submitted by 19 March 2025 (Hong Kong time).
Interested firms should provide the following to ITVF Secretariat via email ([email protected]): (1) a completed application form; (2) the required documents and supplementary materials; (3) a signed declaration form; and (4) the letter(s) of intent. Template forms are provided at the "Guidelines for Application as Fund Manager of the ITVF enhanced scheme".
Selection will be based on predetermined criteria and may involve presentations to a selection panel. Applicants will be notified of results in writing.
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If you are interested in applying as a fund manager for the ITVF enhanced scheme, and you require assistance, please feel free to contact the regulatory and fund team at Howse Williams.
Recent recognition
We are pleased to share with you that the Regulatory Team at Howse Williams and its members have been recognised in the IFLR1000 2024 ranking, including:
• “Notable Firm” in the Financial Services Regulatory practice
• “Rising Star Partner” in the Financial Services Regulatory category (Partner William Wong)
• “Rising Star Partner” in the Investment Funds category (Partner Jason Chan)
Below are some clients' testimonial that we received in recognition of our team members' professional services.
"William Wong is technically strong and familiar with the issues faced by clients in the financial services sector. He is a very strong tri-lingual communicator, and is able to explain complicated legal concepts in a manner which is easy to digest." Client testimonial in Legal 500 2025
"Jason Chan is an exceptional lawyer who will go above and beyond for his clients. He is very responsive, supportive and committed to providing excellent services." Client testimonial in Legal 500 2025
These accolades are a reflection of the dedication, expertise, and client-centric approach that defines the Regulatory, Funds and Virtual Assets practice at Howse Williams. We are honoured by the trust and support of our valued clients, which has been instrumental in our continued success and growth in this specialised area of law. The HW Regulatory team now consists of two Partners, two Consultants and four Associates (many of whom joined from international law firms), and is one of the largest dedicated financial services regulatory practices in Hong Kong.
The Regulatory team at Howse Williams advises on both contentious and non-contentious matters, and often in both capacities for the same clients; therefore making us unique in our ability to work with clients on all of their regulatory and compliance needs. Our clients include banks, brokers, listed companies, asset managers, financial advisors, financial investors, insurance companies and established businesses. We also advise senior management such as directors, responsible and executive officers, chief executives and licensed individuals.
About Us
Howse Williams is a leading, full service, Hong Kong law firm. We combine the in-depth experience of our lawyers with a forward thinking approach.
Our key practice areas are corporate/commercial and corporate finance; commercial and maritime dispute resolution; clinical negligence and healthcare; insurance, personal injury and professional indemnity insurance; employment; family and matrimonial; trusts and wealth preservation; wills, probate and estate administration; property and building management; banking; fraud; distressed debt; investment funds; virtual assets; financial services/corporate regulatory and compliance.
As an independent law firm, we are able to minimise legal and commercial conflicts of interest and act for clients in every industry sector. The partners have spent the majority of their careers in Hong Kong and have a detailed understanding of international business and business in Asia.
Disclaimer: The information contained in this article is intended to be a general guide only and is not intended to provide legal advice. Please contact [email protected] if you have any questions about the article.