The ongoing protests have not discouraged strategic investors in Hong Kong-based start-ups as their focus is on the long-term potential of such companies.
AngelHub and WHub, co-founded by Karen Contet Farzam and Karena Belin, last week raised a combined US$3 million in their first round of funding from TNG Fintech Group and Kharis Capital. The valuation and equity structure were not disclosed.
Since the anti-government protests started on June 9, the city's economy has taken a beating, particularly retail and tourism related businesses. Even the stock market has been affected, as turnover fell and initial public offerings dried up.
There were signs of a revival in IPO activity on the Hong Kong stock exchange last week amid an improvement in stock market sentiment. Tensions in the US-China trade war have eased and Hong Kong's leader Carrie Lam Cheng Yuet-ngor earlier this month formally withdrew a controversial extradition bill that had sparked the protests.
(From left) Karena Belin and Karen Contet Farzam, co-founders of AngelHub and WHub, with Alex Kong, founder and chief executive of TNG Fintech Group, which has invested in the Hong Kong-based start-ups. Photo: Enoch Yiu alt=(From left) Karena Belin and Karen Contet Farzam, co-founders of AngelHub and WHub, with Alex Kong, founder and chief executive of TNG Fintech Group, which has invested in the Hong Kong-based start-ups. Photo: Enoch Yiu
"The protests and social unrest have affected stock market sentiment, but we believe these would only be temporary. We believe the outlook for start-ups in Hong Kong is positive," said Alex Kong, founder and chief executive of TNG Fintech.
The home-grown unicorn offers e-wallet services to customers in Asia, who can use their mobile phone apps to make payments and transfer money. Unicorns refer to start-ups valued at more than US$1 billion.
Venture capitalists have ignored the protests roiling Hong Kong since June and are instead focusing on the long-term potential of start-ups in the city. Photo: Sam Tsang alt=Venture capitalists have ignored the protests roiling Hong Kong since June and are instead focusing on the long-term potential of start-ups in the city. Photo: Sam Tsang
"Our family office investors take a very long term view of their investment in Hong Kong. We do not believe the current protests would be permanent," said Daniel Grossmann, founder and managing partner of Kharis Capital.
Brussels-based Kharis Capital is a venture capital platform that links over 70 wealthiest family offices worldwide with potential investment targets.