ITVF Innovation and Technology Venture Fund
A government co-investment fund that amplifies venture backing: start-ups can't apply directly. You must first get funded by an ITVF-designated venture partner, after which the government co-invests at roughly 1 (government) : 2 (VC), capped at HK$50M of government matching per investee company. The real path is: land a term sheet from a designated VC → the VC files a co-investment proposal to the ITVF secretariat → the steering committee reviews it.
Your local tech start-up (AI & data science / health & biotech / advanced manufacturing & new energy) has, or is about to, secure investment from an ITVF-designated venture partner and you want the government to amplify it proportionally. The real 'user' is the VC; you're the investee the VC brings in.
Founders hoping to file a form and take money from the government directly — ITVF does not accept applications from start-ups, and without a designated VC investing first this route is closed (see HKSTP / Cyberport seed grants, or TSSSU).
- Deadline / window
- No fixed deadline — runs on a rolling basis. Start-ups must be brought in by a designated ITVF venture partner / fund manager, not by open direct application
- Company age
- Investee company incorporated ≤7 years, with substantive operations and management in Hong Kong
- Employees
- Fewer than 250 full-time employees
- For whom
- Local tech start-ups; focused on AI & data science / health & biotech / advanced manufacturing & new energy
- The designated venture partner files a co-investment proposal to the ITVF secretariat (term sheet, due diligence, deal structure) — not submitted by the start-up itself
It's the government amplifying VC backing
ITVF isn't a grant to start-ups; it's a co-investment tool between the government and VCs. The government designates a set of venture partners / fund managers, and when one of them invests in a local tech start-up the government co-invests at about 1:2 to amplify it. So a start-up can't apply directly — your job is to win over a designated VC first, then the government follows. Great for start-ups VCs already want (their round gets amplified), but a dead end for teams with no VC yet.
2024 Policy Address optimisation: 1:3 joint funds
The 2024 Policy Address proposed optimising ITVF: carving out about HK$1.5B to set up joint funds at 1 (government) : 3 (market), with roughly HK$150M–250M of government money per fund, to pull in private capital toward local tech at greater leverage. Implementation progress follows official announcements.
- 1
Win over an ITVF-designated VC first
The door to ITVF is the VC, not the government. Raise from an ITVF-designated venture partner / fund manager and land a term sheet.
Pitfall: Going to the ITVF secretariat or ITC to apply directly — start-ups aren't the applicant and get sent back to a VC.
- 2
The VC files the co-investment proposal
The designated VC submits a co-investment proposal to the ITVF secretariat with the term sheet, due diligence and deal structure, asking the government to co-invest at about 1:2.
Pitfall: Assuming a term sheet auto-triggers the government match — the VC still has to complete and pass the proposal process.
- 3
Steering committee review
The ITVF steering committee reviews the proposal, checking investee eligibility (≤7 years old, <250 staff, substantive HK operations, target sectors) and the matching cap (cumulative ≤HK$50M).
Pitfall: If the investee fails the substantive-HK / age / headcount / sector tests, it won't pass even with VC backing.
- 4
Government co-investment lands
Once approved, the government co-invests alongside the VC in proportion, up to the HK$50M cumulative cap per company; each tranche is the lower of 40% of the target round or HK$30M.
Pitfall: Treating the match as uncapped — it stops at HK$50M cumulative; beyond that you fund it yourself.
What government co-investment actually does to negotiation and valuation from the investee's side — pending a first-hand interview.· First-hand insight in the works
To be supplied by an interview with an ITVF-backed start-up.
How long it really takes from the VC's proposal to government money landing, and where it stalls — pending a first-hand interview.· First-hand insight in the works
To be supplied by an interview with a designated VC / investee.
Whether investment from a non-designated VC can be brought in later, and on what terms — pending a first-hand interview.· First-hand insight in the works
To be supplied by an interview with the ITVF secretariat / a VC.
- 01Already raising → prioritise ITVF-designated venture partners so the government amplifies your round.
- 02Check you qualify → ≤7 years old, <250 staff, substantive HK operations, in a target sector; otherwise fix that first.
- 03No VC yet → look at HKSTP / Cyberport seed grants or TSSSU first, and build the company to the point a VC will invest.
ITVF is a co-investment arrangement between the government and VCs; start-ups are not the direct applicant, and turnover is not a scheme threshold so it's omitted. Ratios, caps and joint-fund arrangements follow the latest official figures.
Sources
- S71 创科创投基金 ITVF