Hong Kong Fintech Ecosystem Report

PART II: FINDINGS FROM 2024 HONG KONG FINTECH ECOSYSTEM SURVEY 29 40% 40% 30% 30% 60% 60% 70% 70% 50% 50% 20% 20% 10% 10% 80% 80% A significant majority of the surveyed companies (78.5%) identified financial institutions as their target customer segment. Within this segment, the top three target sub-segments are segments include non-financial corporates (48.5%) and SMEs (42.3%). Detailed breakdowns of the companies’ target customer segments and sub-segments within the financial institutions segment are displayed in Exhibits 5 and 6. More than half of the surveyed companies (55.4%) reported successfully raising funds in Hong Kong. As depicted in Exhibit 7, their funding sources include friends and family (30.4%), angel investors (25.0%), venture capital firms (18.8%) and family offices (12.5%). The maximum raised by a surveyed company to date is US$630 million. Exhibit 8 presents the approximate total amounts raised to date by the surveyed companies. Additionally, 44.6% of the surveyed companies reported receiving subsidies or funding schemes from the government entities in Hong Kong, including Cyberport (34.6%), Hong Kong Science and Technology Parks (HKSTP) (26.9%) and the Innovation and Technology Commission (ITC) (16.2%). Exhibit 5: Target Customer Segments of Surveyed Fintech Companies Exhibit 6: Target Customer Sub-segments (within the Financial Institutions Segment) of Surveyed Fintech Companies Exhibit 7: Funding Sources of Surveyed Companies who have Successfully Raised Funds in Hong Kong Friends and family 30.4% Asset Managers Financial Institutions 53.9% 72.6% 45.1% 52.9% 47.1% 25.5% 21.6% 38.2% 51.0% 34.3% 49.0% 6.9% 78.5% 48.5% 42.3% 35.4% 35.4% 14.6% Securities Firms Insurance Companies Consumers (B2C) Brokers / Dealers SMEs Wealth Managers Other Intermediaries (e.g. Insurance Agents) Banks Non-financial Corporates Venture Capital & Private Equity Insurance Brokers Others Family Offices Regulators and Government Offices Others Payment Firms 0% 0% Angel investor(s) 25.0% Venture capital firm(s) 18.8% Family office(s)12.5% Debt financing 3.6% Others 9.8% banks (72.6%), asset managers (53.9%), and family offices (52.9%). Other top target customer