Hong Kong Pours Billions Into AI Start-Ups as Cheong Maps Growth

Hong Kong will mobilise up to HK$10 billion in government capital across two new funds, aiming to pull in at least HK$47.5 billion from private markets to back AI-era start-ups. Acting Secretary for Innovation, Technology and Industry, Ms Lillian Cheong, laid out the plan at the Cyberport Venture & Capital Forum 2026 on November 4.

The forum's theme, "Scaling in a Changing World: Winning the Next Competitive Cycle", frames a pressing question for entrepreneurs and investors: how to turn rapid technological change into lasting business value. Cheong's answer rested on money, markets and management expertise working in tandem.

What did Cheong say about AI and competitiveness?

Cheong told the audience that AI is reshaping both what tech companies sell and how they operate. But adoption alone won't save anyone.

"Adopting AI does not, in itself, guarantee business success," she said. "What matters is how effectively these enterprises integrate AI into their operations to meet customer needs, improve productivity and strengthen their long-term competitiveness."

Turning that potential into growth takes more than technology, she argued. It also requires investment, business expertise and access to markets. Forum discussions span the Greater Bay Area, the Middle East, ASEAN and Central Asia, giving enterprises routes to customers beyond their home markets.

How big are the new funds?

The numbers anchor the government's commitment:

• Enhanced Innovation and Technology Venture Fund (ITVF): An additional HK$1 billion lifts the government's provision to up to HK$2.5 billion, with at least HK$7.5 billion in market capital expected. Nine general partners were selected in principle in April as the first batch of fund managers, and the first investment commitment under the enhanced scheme has already been made. The fund targets early-stage rounds — Series A and B.
• Innovation and Technology Industry-Oriented Fund (ITIF): A HK$10 billion government commitment expected to reach a total fund size of at least HK$40 billion including market contributions. Twenty GPs have been shortlisted and are raising capital to form sub-funds, with the Government acting as a key limited partner. The ITIF backs five thematic areas, including AI and robotics, life and health technology, and future and sustainable development.

The 2026 Policy Address also sets out further support for AI adoption and start-up development. One measure enhances the Digital Transformation Support Pilot Programme, providing matching subsidies to help more small and medium-sized enterprises adopt AI and cybersecurity solutions. Cheong said this helps businesses become more competitive while giving innovators chances to prove their solutions in everyday operations.

How strong is Hong Kong's start-up base?

The ecosystem the funds will feed is already expanding. Hong Kong counted over 5,200 start-ups in 2025, up 11 per cent year on year. The Hong Kong Science Park and Cyberport have together nurtured around 20 unicorns.

Cyberport itself now counts more than 2,400 companies in its community, which Cheong called "a testament to the strength of its innovation ecosystem." Its Investors Network marks its ninth anniversary this year, and she credited backers for more than money: "Industry knowledge, business networks and guidance are just as important in helping a young company take its next step."

Cheong closed with a pitch to both sides of the deal table. Investors should connect with the founders present, she said, and make use of Cyberport as a platform. Entrepreneurs should seek not only funding but also the expertise and partnerships that help businesses grow.

Her governing principle: technology, capital and applications must develop together, because investment lets enterprises refine technology while practical applications prove commercial value and attract further capital. With the ITVF commitments live and ITIF sub-funds forming, the test now is whether that HK$47.5 billion in targeted capital actually lands with Hong Kong's founders.