What is an Incubator and How Do They Help Startups?
Reading time: around 3 minutes
When you are ready to bring your entrepreneurial visions to life but need guidance for your initial steps, a startup incubator could be the catalyst to kickstart your plans at full speed. What kind of support can early-stage companies get from startup incubators in Hong Kong? As an aspiring entrepreneur, when should you start preparing to apply for a startup incubator? Read on to learn how startup incubators can nurture your startup's growth in the following article.
What is a Startup Incubator?
A startup incubator is a medium to long-term support scheme for startup companies, aiming primarily to help and solve early-stage challenges a startup may face, such as product development, market feedback, and legal consultations, etc1. The teams are usually composed of mentors with extensive business experience, while these incubators offer startup companies a shared working space and opportunities to expand their network2. In essence, the ultimate goal of a startup incubator is to aid startup companies in overcoming challenges and swiftly advancing to the next growth phase.
In the long run, by joining a respected startup incubation programme, startup companies can establish a solid reputation and a fine track record, making it easier to attract partnerships, angel investors or potential clients in the future3. The shared working space offered by the incubator can help startups save hefty rents and administrative costs3.
Difference Between Incubators and Accelerators
Besides startup incubation programmes, "startup accelerator" programmes also offer startup companies financial assistance and workshops. Incubators and accelerators have similar functions, as they both can generate more resources and exchange opportunities for startup companies, thereby facilitating their growth1. That being said, accelerators tend to support startups that have already reached a certain scale1.
Startup incubators are suitable for:
● Individual entrepreneurs or small teams1;
● Those without a comprehensive business model and a developed product1;
● Showcasing entrepreneurial thinking and potential, and ability to meet market demands1;
● Expanding networks1;
● Startups that can adapt to a growth plan of 1-5 years1;
● Those seeking more mentorship support and less funding assistance1.
Accelerators are suitable for:
● Those with a comprehensive business model and early-stage developed product1;
● Products with business models that have been tested and can meet market challenges1;
● Expanding networks1.
Incubation and Accelerator Programmes in Hong Kong
Incubation and accelerator programmes in Hong Kong are predominantly focused on innovation and technology, and are run by the Hong Kong Cyberport Management Company Limited and Hong Kong Science and Technology Parks Corporation4. At the same time, various other organisations and large corporations offer support programmes for startups in other industries4, such as fashion and accessories5, hardware manufacturing and design6, toys and electronics7, social enterprises8, etc. As of 31 May 2024, here are the incubation and accelerator programmes from Invest Hong Kong ("InvestHK")4:
Innovation and Technology4
● Cyberport Accelerator Support Programme
● Cyberport Incubation Programme
● Ideation Programme
● HKSTP Incubation Programme
● Incu-Bio Programme
● HKSTP Acceleration Programme
● HKSTP Elite Programme
Creative Industries4
● Design Incubation Programme ("DIP")
● Fashion Incubation Programme ("FIP")
Other Startup Incubation and Accelerator Programmes4
● Azalvo
● Brinc
● Cocoon X Google for Startups: 92 Express
● Entrepreneur First
● Eureka Nova
● FinTech Innovation Lab Asia-Pacific
● Founder Institute
● Global Acceleration Academy ("GAA")
● HUAWEI Spark
● LimeHK
● Mizuho Crowd Brain powered by Eureka Nova
● SOW Asia
● STARS Programme
Overview of Startup Ecosystem in Hong Kong
Currently, around 74% of startup founders in Hong Kong are locals, and 26% are non-locals. Among the non-locals, the majority come from Mainland China, the UK, the US and France9. According to InvestHK’s 2023 Startup Survey, there are 4,257 startups in Hong Kong, posing a 34% increase over the past 5 years9. All the while, the number of shared working spaces, incubators and accelerators has reached 132, marking a 43% increase within the past 5 years9. This demonstrates a thriving startup culture in Hong Kong, with abundant opportunities.
All passionate entrepreneurs understand that opportunities are reserved for those who are well-prepared. Are you looking for financing options in your entrepreneurial journey?
DBS SME Banking is here to provide the financial support you need to start your own business. Click here now to learn more about SME instalment loans.
^Terms and conditions apply.
*** Account opening can be completed in as fast as 1 working day for Hong Kong-incorporated entities with all shareholder/director/sole proprietor/partner holding a Hong Kong Permanent Identity Card. For Hong Kong-incorporated entities with at least 1 shareholder/ director/ sole proprietor/ partner holding the People’s Republic of China Resident Identity Card, account opening can be completed in as fast as 5 working days. Subject to eligibility and conditions.
Subscribe to DBS BusinessClass
Stay updated with latest industry trends and insights in Asia, connect with a network of entrepreneurs, and gain access to exclusive event invitations.
Connect to thousands of entrepreneurs in Asia
Learn about market trends and insights
Network at exclusive events
Consult global business experts and seasoned advisors
That's great to hear. Anything you'd like to add?
We're sorry to hear that. How can we do better?