InvestHK and OurCrowd

Where Business Goes to Grow

Hong Kong as a Gateway to Mainland China & APAC March 2015 OurCrowd Webinar

RIGHT PLACE

Heart of Asia

Gateway to

China

Greater Pearl River Delta •  Population 55.3 mn > Canada

•  Exports US$387 bn > UK, Canada (more than 27% of China’s exports)

•  GDP US$665 bn > Sweden, Belgium

•  Land area 56,000 sq km < Panama (less than 1% of China)

One Country, Two Systems

Low and Simple Tax System

Source: Forbes Tax Misery Index 2009, Inland Revenue

•  VAT/GST/Sales tax

•  Capital Gains Tax

•  Withholding tax on investments

•  Estate duty

•  Global taxation

•  Wine duty

World Class ICT - Connecting People •  8th in the Global Innovation Index Report

(INSEAD 2012)

•  6th most advanced ICT economy (ITU Sept 2011)

•  2nd in Asia Cloud Readiness Index (Asia Cloud Computing Association, Sept 2011)

•  The safest place in Asia for setting up data centres (Data Centre Risk Index, Cushman $ Wakefield, 2012)

•  Mobile phone penetration rate >220%

Human Capital - Quality Education •  Two universities in the world’s top 100

(Times Higher Education World University Rankings 2012/13)

•  HKUST MBA - 1st in Asia and 10th in the world (Financial Times Global MBA Ranking 2012)

•  World’s Top EMBA in 2011: Kellogg - HKUST EMBA Programme (Financial Times 2012)

•  48 international schools

•  3rd in the Global Index of Cognitive Skills and Educational Attainment (Economic Intelligence Unit 2012)

•  Hong Kong people have the highest average IQ in the world – 107 (IQ and the Wealth of Nations)

Rapidly Growing Wealth in Asia

Source: Credit Suisse Global Wealth Report 2011

l  Gateway to 3.7 million HNWIs in Asia Pacific with wealth totaling US$12 tn

l  Wealth growth the strongest in Asia Pacific at 12%

l  Hong Kong – HNWIs up 36%

l  Asia Pacific expected to lead robust global HNWI wealth growth. HNWI wealth expected to reach US$16 tn by 2015

l  Source: Capgemini World Wealth Report 2013

Source: HKTB

Total retail sales US$52 billion; +25% Per capita retail spending >USD8,900

84% of the world’s leading luxury and fashion retailers

and 41% of all international retail brands are in Hong Kong

11 shops in London;17 in Hong Kong

6 shops in Milan;13 in Hong Kong

4 shops in Milan;10 in Hong Kong

%  of  mainlandcompanies

%  of  marketcapitalisation

18%

27%

47%

57%2000 2012 •  721 listed Mainland enterprises on the HKEx; total market cap US$1.61 tn (as of Dec 2012)

•  1,086 new investment projects approved; investment amount US$35 bn (MOFCOM, 2011)

•  RMB deposits in Hong Kong of RMB558 bn (~US$88 bn) (as of June 2012)

Springboard for Mainland Companies

Markus Kramer President, Dispersions and Pigments Division (Global headquarters)

Global Operations in Hong Kong

John Rice Vice Chairman (Global operations)

Jean-Pascal Tricoire Global CEO

Johan de Nysschen President (Global headquarters)

Michael Andrew Global Chairman

Jeff Urwin Global Head of Investment Banking

Wiebo Vaartjes EVP & GM (Global headquarters of Philips Consumer LifeStyle)

As well as Micro…

Notable Israeli companies in HK

Committed to Attracting and Supporting Innovative, High Impact Ventures Israeli startup FreightOS

wins StartmeupHK 2014 Competition

Why entrepreneurs come to Hong Kong

Connectivity – heart of Asia; half the world’s population within 5 hours’ flight time Profit Centre – low and simple tax regime Law - independent judicial power; a common law jurisdiction within China Resources – Global financial centre; large pool of HNWIs and talented people Culture - multicultural community; best of East and West Innovation - ranked 1st in Asia in the Global Innovation Index (GII) 2013 Efficiency – register a company with one director and HK$1 in one hour World’s freest economy – low barriers to entry; ideal place to commercialise innovative ideas

Asia strategy – Western business culture meets Eastern opportunities, best platform for global supply chain and test market.

Incubators Hong Kong Science and Technology Parks •  308 graduates raised US$99.3 million from VCs/angels since 2003

•  > 350 companies and > 50% of staff engaged in R&D

•  Clusters in electronics, biotech, IT/telecom, green tech, precision engineering

Cyberport •  158 incubatees up to March 2012 raised US$5.1 million from VCs/angels

•  > 100 ICT and digital media companies

•  Clusters in cloud computing, e-commerce, emerging internet

Support and Startup Communities

Burgeoning Co-work Spaces

startup commune

2010 3

2014

30

Number of co-work spaces in HK

>1,600 spaces

A Vibrant Community •  and – Empowering Young Entrepreneurs

Programme

•  and – Accelerator Support

Programme

•  Open Data Hong Kong

•  HK$500 million Social Innovation and Entrepreneurship

Development Fund (launched in 2013)

Notable Hong Kong VC Deals Post-GFC

funded by Fresco funded by First Round Capital, True Ventures,

Greycroft, etc

funded by Arbor

admitted to 500Startups admitted to Techstar x Nike

funded by Ambient

Sound

funded by IPV invested by

Sumitomo, EMC, Stanford, Sierra

and Mission

invested by Mandra, AXA and Mitsui, business plan

now fully funded by Neiman Marcus

Opportunities in Hong Kong •  Serve as the laboratory/Asian POC site for a smart city solutions,

Fintech •  Scale your Asia business and manage channels out of HK •  Rising demand for industries to enhance quality of life, e.g.,

creative/content industries, green business, medical and health tech/ICT and other technologies

Lifestyle in Hong Kong

How InvestHK Helps Entrepreneurs

Facilitation of visa

applications, schooling

PR and marketing

support for launch /

expansion

Networking events,

introduction to service providers

Information to aid planning

and evaluation

For more information, please contact: Jonathan Sternberg, Israel Office www.investhk.gov.hk Email: [email protected] Tel: (972) 25710199

Get in Touch