From Pitch to Rich: Startups, venture capitalists seek innovation treasures. Join us and learn more at CVCF 2023!
The venture capital market is feeling the aftershocks of global interest rate hikes and prevailing geopolitical tensions, leaving some technology startups strapped for cash. However, amidst the storm clouds, a glimmer of hope is breaking through. The COVID-19 pandemic over the past three years acted as a catalyst, propelling digital trends forward at an astonishing pace.
This rapid surge is also evident in the extensive embrace of digitally-driven business models on a global scale, as funders and founders all look to the unlimited potential of Web3, AI, and emerging technologies to break through challenges, transforming drawbacks into launching pads.
Against this backdrop, the annual Cyberport Venture Capital Forum 2023 (CVCF) will be the stage for exchanges of actionable insights on the financial prowess of unbridled technological innovation. Scheduled to take place from 31 Oct to 1 Nov at Hong Kong's Cyberport, the unrivaled tech hub of the Asia-Pacific region, this much anticipated hybrid forum, themed “Venture Forward: Game Changing through Innovation,” will draw around 80 influential figures from corporate and institutional investment circles, industry, tech corporations, budding startups, intermediaries, and academia as well as other notable individuals.
“Amid the current complex economic and geopolitical environment, it has without a doubt been a challenging year for many all around the world. The uncertainty is certainly also putting pressure on margins and global growth,’’ said Arnold Chan, general manager of Airwallex, a fintech unicorn backed by Australia’s Square Peg, Tencent Holdings and tycoon Li Ka-shing’s Horizons Ventures, in an interview with China Daily.
Arnold Chan, General Manager, Asia, Airwallex (PROVIDED TO CHINA DAILY)
“Venture capitalists will need to constantly monitor and analyze existing and potential geopolitical risks, so they can better plan for a long-term strategy. And I believe that in the face of adversity, there are always opportunities, and this couldn’t be more true for the tech sector,” added Chan.
“Broadly speaking, the tech venture market is well positioned for longer-term growth. With the current economic uncertainty, businesses everywhere are looking at ways to be more cost-efficient while also boosting productivity and revenue. Despite the funding crunch, it remains the case that, should a good startup emerge with a robust business model, a strong vision, purpose and mission, and a visionary leadership – such businesses will still be able to attract funding.”
According to the venture capital database Crunchbase, worldwide venture funding in Q3 2023 totaled $73 billion (equivalent to approximately HK$569.4 billion), indicating a 15 percent decline compared to the $86 billion invested in Q3 2022.
The data also reveals that seed funding amounted to $6.6 billion, while early-stage financing reached $23.4 billion during the same period. These figures represent a notable decrease of 27 percent and 38 percent, respectively, when compared to the corresponding period in the previous year.
Chan added, based on our experience, the B2B landscape in Asia remains highly promising. As businesses grapple with intricate enterprise challenges, an increasing number are turning to technology in search of optimal solutions. This surge in demand, coupled with the Hong Kong SAR government’s incentives and initiatives aimed at fostering the expansion of the digital economy, will continue to propel opportunities for venture growth.
Henry Yuan, General Manager, ABCI Investment Management Limited (PROVIDED TO CHINA DAILY)
Henry Yuan, general manager of ABCI Investment Management, acknowledged that the geopolitical turbulence has injected a heightened level of complexity and uncertainty into the tech venture market. In the current investment climate, the impacts on startups are pretty challenging.
However, when viewed through the lens of risk and reward, this situation could also open up great opportunities for investors that have not been seen in quite some time, Yuan shared during an interview with China Daily.
Geopolitical tensions, market volatility, and macroeconomic conditions have undeniably influenced investor sentiment and risk appetite. However, Yuan explained that startups operating in sectors perceived as resilient and promising, such as AI, fintech, consumer health, ESG, software, and direct-to-consumer ventures, are likely to have better prospects for attracting investment. And startups in highly competitive sectors may need to differentiate themselves and demonstrate unique value propositions to attract investment.
Yuan also shared his views on the potential for venture growth in the Middle East. “Middle East governments have strong incentives to transform their economy, so areas such as e-commerce, fintech, renewable energy, healthcare, and logistics have strong potential. In addition, the Middle East’s young and digitally-savvy population and the rising internet connectivity will contribute to the growth potential as well,” he said.
“Hong Kong serves as a super-connector, not just in terms of its geographical location, but also as a hub connecting startups, venture capitalists, strategic investors, financing providers, and international capital markets,” stated Yuan, emphasizing the city's pivotal role.
He went on to highlight the robust presence of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) in thriving technology sectors, such as hardware manufacturing, software development, robotics, biotech, and more.
“The GBA attracts startups and talent with its unique position to access to capital, research institutions, and a supportive ecosystem,” said Yuan.
Additionally, the GBA offers a gateway to a vast consumer market, boasting a population of over 86 million people. The GBA’s strategic advantage lies in its proximity to bustling manufacturing hubs, well-established international trade routes, and the renowned Hong Kong international financial center. The unique blend of these factors presents a wealth of opportunities for growth and prosperity within the region, as noted by Yuan.
Aside from the topics covered by these two speakers, such as the global, Asia and Middle East venture landscape, and GBA and cross-border investment, this Cyberport Venture Capital Forum will showcase a plethora of other exciting subjects. Attendees will have the opportunity to delve into ESG/social impact matters, navigate the licensing regime of virtual asset trading platforms, and even explore the intricacies of the family office world. This event is set to offer plenty of engaging discussions that are sure to captivate participants.
CVCF has a solid track record of bridging the gap between capital, innovation, entrepreneurship, and growth. Notable highlights this year include: the exclusive “MatchEasy” online scheduler for one-on-one virtual or physical meetings; the Startup Clinic with valuable free consultations and practical operational advice for aspiring entrepreneurs; the Founder Stage empowering startups with valuable insights into innovative tech solutions, and a virtual marketplace for the Innovators Showcase where they can get to grips with the next big idea.
B2B landscape in Asia remains highly promising; an increasing number are turning to technology in search of optimal solutions which foster the expansion of the digital economy and continue to propel opportunities for venture growth. (PROVIDED TO CHINA DAILY)
Therefore, if you're a startup eager to ride the wave of the latest market trends in those specific domains, this year's CVCF could be your “treasure map” to securing crucial capital from some of the world's most visionary venture capitalists. And for investors, the CVCF acts as a hub, lighting the way for tech startups and cutting-edge innovations, all within the vibrant and conveniently positioned Cyberport community. Don't miss the boat, hurry over to the official website of the Cyberport Venture Capital Forum and register your interest!
The article is sponsored by Cyberport Venture Capital Forum.
