How to take a startup from idea to international success

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This week we’re quoting Derek Chim (Head of Incubation and Acceleration Programmes, HKSTP - Hong Kong Science and Technology Parks Corporation )

What Chim said:

“We see there are lots of startups from mainland China that are scaling out to Hong Kong. At the same time there are lots of overseas startups that want to tap into Hong Kong, both as a market and as a talent pool — a platform for them to scale into different regions.”

Connecting global markets

Established in 2001, Hong Kong Science & Technology Parks Corporation (HKSTP) is now a major R&D base, driving innovation and business growth. And importantly, HKSTP is connecting Hong Kong with global markets; enabling inward and outward engagement from local and international businesses.

Speaking on the LEAP:IN podcast, Chim said that when HKSTP first started, Hong Kong “was all about banking and service industries – very few people were thinking about entrepreneurship.”

But today, that’s all changed. According to a startup survey by InvestHK, both the number of startups and their number of staff employed in Hong Kong reached a record high in 2023 – with 4,257 startups employing 16,453 staff.

This is testament to Hong Kong’s work to create favourable conditions for startups to thrive, enabling a productive entrepreneurial culture to emerge; and HKSTP plays an important role in that.

What are the initiatives driving startup success at HKSTP?

HKSTP runs three key programmes that are designed to support entrepreneurs and startups at every stage of their journey.

1.???? An ideation programme: A one year programme that starts at the very early stage of startup development, helping teams to develop their ideas and business plans, and come up with a prototype.

2.???? An incubation programme: Over three years, this programme helps startups to move beyond the ideation stage and productise their MVPs – then roll out their first products and start making sales.

3.???? An acceleration programme: A two year growth-stage programme to help startups scale their product families and profitability.

The logic behind these three distinct stages

The journey through each of these programmes is important – because each one helps startups solve the problems they’re most likely to face as they move through the business development process.

At the ideation stage, for example, Chim noted that they see many startups with brilliant ideas – “...but they lose track of what exactly is their problem-solution fit.” So HKSTP helps them nail down their prototype with a real focus on the problem they’re trying to solve.

Then, with a minimum viable product (MVP) in place, startups often face serious challenges in terms of scaling up and out, and making more significant sales; “because they haven’t done enough product-market fit exercises,” and they haven’t given enough consideration to supply chain operations and efficiencies. So the incubation programme helps them validate PMF, line up valuable partners and promotional opportunities, and connect them with relevant vendors.

At the acceleration stage, Chim said, startups might already be achieving one or two million dollars worth of annual revenue, “but when they try to scale out, they fail – because they can’t simply copy the same product and sell in different markets.”

That’s why the programme enables them to work closely with different ecosystem partners in the markets they want to expand into – and get clear on how they can effectively scale in those specific markets.

Important lessons for startups in all markets

Working closely with startups as they launch and grow their businesses, Chim has (inevitably) gained real wisdom – he knows what does (and doesn’t) work.

We asked him to share the key factors that contribute to a successful startup, and he said he thinks there are two:

1.???? People

2.???? Ecosystem support

And these are the two areas in which HKSTP works hard to support every startup that goes through their programmes. With an extensive network of partners, including experts in R&D, they connect startups with the mentorship and practical skills they need to facilitate success.

Then when those startups are ready to grow, ecosystem networks allow them to tap into knowledge and growth partners that enhance their capacity to scale up in size and out into new markets.

It’s a model that just makes sense – so we’re keeping a close eye out for the innovative startups that will emerge from Hong Kong in the coming months and years.

Read the blog: Why diverse markets are good for startups

Listen to our full interview with Derek Chim on the LEAP:IN podcast

Have an idea for a topic you'd like us to cover? We're eager to hear it! Drop us a message at [email protected] and share your thoughts.

Catch you next week,

Richard McKeon

Vice President of Marketing & Communications, Tahaluf

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