Inside Startups - June issue by Education Post

JUNE

Inside Startups FinTech issue

- City needs strategy to take a decisive lead - Data storage and moneylending get connected - New accelerator programme in Hong Kong

www.educationpost.com.hk/is-jun15

(Advertisement) (Advertisement)

CONTENTS Overview

City needs strategy to take a decisive lead JOHN CREMER

The rulebreaker

Data storage and moneylending get connected JOHN CREMER

Funding

New accelerator programme in Hong Kong CHRIS DAVIS

Career

Hitch a ride on the career rocket CHRIS DAVIS

In the news

China’s Silicon Valley throws money at tech start-ups as government takes over ADRIAN WAN

Event

‘Million Dollar’ business bosses show the drive to succeed JOHN CREMER

Overview

City needs strategy to take a decisive lead Text: John Cremer Photo: Steward Chan

Steve Monaghan

The broad consensus expressed at the recent FinTech First seminar organised by Education Post, Hong Kong Design Centre and Nest Hong Kong was that Hong Kong has everything needed to assume and maintain a leading position in the field. All the essentials are there, from entrepreneurs and corporate know-how to active support from government, universities and investors. Still missing, though, is a co-ordinated strategy to tie it all together and steal a decisive march on the competition. In his opening remarks, Simon Galpin, director-general of investment promotion for Invest Hong Kong, notes that FinTech is becoming very important as a global phenomenon, with US$3.1 billion of new investment in the sector recorded in just the fourth quarter of 2014. “Hong Kong now has one of the fastest growing start-up ecosystems in the world,” he says, adding that 74 new FinTech ventures were set up locally last year. That total is sure to have risen to well over 100 by now, besides which 41 of the international “FinTech 100” companies also have a presence and an office in Hong Kong. “Our job as a government department is really to support companies one-to-one, providing specialist advice and acting as ‘account managers’ over a period of several years,” Galpin says. “Hong Kong has a great opportunity to become a leading centre on the global stage, but it won’t happen by accident,” says Steve Monaghan, regional director and head of edge (group innovation) for AIA Hong Kong. “The best ecosystems are designed to create ease of access, impact and scale. At present, the FinTech ecosystem here appears to be somewhat fragmented, making it more difficult for entrepreneurs to connect into the many resources Hong Kong has at its disposal.”

SINGAPORE HAS A FANTASTIC ECOSYSTEM AND NO ENTREPRENEURS; HONG KONG HAS FANTASTIC ENTREPRENEURS AND A FRAGMENTED ECOSYSTEM, BUT ENORMOUS POTENTIAL

He adds, though, that it wouldn’t take long to effect change and set the right course. Sufficient talent is available and, provided those

Inside Startups

Overview

Dr. Simon Galpin

involved don’t simply talk but, instead, learn by doing, tremendous strides can be made in just one year. The priority is to focus on design, engineering, and figuring out what users or customers will want. “Taking a regional perspective, I would say Singapore has a fantastic ecosystem and no entrepreneurs; Hong Kong has fantastic entrepreneurs and a fragmented ecosystem, but enormous potential,” Monaghan says. “We need to focus on enabling talent and supporting entrepreneurs who can then design and build great products and business models, which can have a real commercial impact.” Alex Trott, Accenture’s managing director for financial services, suggests that, with the support of the regulators, companies in Hong Kong should aim to lead the way in finding innovative digital solutions for banking and, in doing so, be inspired by the natural element of competition. “Keep in mind that Hong Kong is in the company of global FinTech leaders including New York, London and Silicon Valley,” Trott says. “It shouldn’t be looked at as ‘us against them’. The truth is all these FinTech hotspots are constantly trying to improve and Hong Kong would do well to focus on its own strengths.”

KEEP IN MIND THAT HONG KONG IS IN THE COMPANY OF GLOBAL FINTECH LEADERS INCLUDING NEW YORK, LONDON AND SILICON VALLEY

Obviously, one is proximity to the mainland, which makes it logical to work on FinTech solutions and services designed expressly for China customers. A good example is WeCash, a Beijing-based company which analyses Chinese customers’ credit and, last year, took part in an Accenture innovation initiative. According to Trott, another should be the willingness to be a digital disruptor rather than a digital dunce. This boils down to not being a “me too” company, but instead asking what it would take to build, say, a better security system. In the initial stages, it is much better to focus on something precise, such as the use of passwords or user verifications, rather than overstretching. “Start-ups shouldn’t chase rainbows,” Trott says. “Entrepreneurs should focus on what they are passionate about; that is when people do their best work. Remember, though, that the major banks want to lead in FinTech, so they will continue to innovate too.”

GOVERNMENT SUPPORT IS INCREASING, START-UPS ARE EMERGING, TECH AND CLOUD PROVIDERS ARE ARRANGING MORE OFFLINE EVENTS

Ralph Chan, vice-president for strategic planning and transformation, technology and operations at DBS Bank (HK), confirms that

From left, Guy Parsonage, CEO of Fluid Design; Steve Monaghan, regional director and head of edge (group innovation) for AIA Hong Kong; Mukesh Bubna, founder & CEO of Monexo Innovations; Chelsea Ling, group director, strategic investments and business development, SCMP; Simon Galpin, director-general of investment promotion for Invest Hong Kong; Dr Edmund Lee, executive director, Hong Kong Design Centre; Rob Findlay, SVP, experience design of DBS Singapore; Tim Stock, co-founder & managing director, scenarioDNA, USA; Jack Poon, CEO, AtCipher.com; Dr Wu Po Chi, adjunct professor, School of Business & Management, HKUST; and Razlan Manjaji, business director, digital education business, SCMP. Inside Startups

Overview

financial institutions, especially in Hong Kong, need to play a more active role in creating a strong FinTech ecosystem. “Government support is increasing, start-ups are emerging, tech and cloud providers are arranging more offline events, and forward-looking universities are improving the supply of talent,” Chan says. “But at the moment, the majority of financial institutions are merely FinTech customers.” “Today, controlled experimentation is critical,” Chan says. “Let’s face it, there is still a lot that is ‘broken’ in the typical bank experience. Therefore, FinTech start-ups and entrepreneurs should be looking to deal with customer needs in new ways. Many of the start-ups we find most attractive solve simple things, but do that extremely well, usually end to end. In future, customer interactions will be dominated by players who bring convenience, speed and great design. As a result, digital technology could completely revolutionise the way we think about money over the next five years.” For US-based Tim Stock, managing director of scenarioDNA, the key now for Hong Kong’s FinTech sector is to think more about the human side – the user experience – and less about the road to financial success or seemingly impressive high-tech breakthroughs. “To be sustainable, the ecosystem needs to explore the ‘humanising’ opportunities,” Stock says. “The immediate priority for FinTech firms is to get in step with current human behaviour. Data science is one thing, but anthropology is the missing piece that leads towards better systems and fuller understanding. Start-ups and entrepreneurs should be focusing on simplicity and recognise the importance of not placing more burdens on the end user.”

THE IMMEDIATE PRIORITY FOR FINTECH FIRMS IS TO GET IN STEP WITH CURRENT HUMAN BEHAVIOUR

(Advertisement)

(Advertorial)

Fast-Growing Fintech Hub in Hong Kong

As an international financial centre with extensive ex-

“Hong Kong is an excellent testing field for our financial

perience in technology, Hong Kong is the ideal place to

technologies and platforms before we expand overseas,”

develop financial technology (fintech) in Asia. The startup

Guan Xiaolan, Vice President, Hundsun Technologies Inc,

scene is growing exponentially as new startups and accel-

said.

erators set up here, bringing exciting ideas and skills. Many venture capitalists and crowdfunding platforms are eyeing

“Hong Kong has the right ecosystem as a financial and

fintech investment opportunities in Asia from Hong Kong.

technology hub – with a ready pool of talent in financial services, a strong customer base, huge network, funding

Hong Kong attracts both big players and smaller enter-

opportunities and ease of doing business,” Itay Damti,

prises. According to a recent survey by Invest Hong Kong,

Managing Director, Asia-Pacific, Leverate, also said.

the number of co-work spaces has surged from only three CM

in 2010 to 35 in 2014. The number of local startups has

Hong Kong’s role as the gateway to the Mainland mar-

reached 1,065, growing by 30 percent over the past year.

ket is being further reinforced. The Mainland is one of

Of these, 74 are involved in fintech. Of the world’s top 100

the world’s largest fintech markets, especially in mobile

fintech companies, 41 have a presence here.

payment, crowdfunding and digital banking. There will likely be an increasing number of cross-border activities

The city has fundamental strengths for developing into

between European and US companies looking to enter the

a fintech hub. The financial services sector accounts for

Mainland market. And as mainland companies mature,

about 16 percent of the local GDP, and about 70 of the

Hong Kong is their natural stepping stone to go global.

world’s 100 largest banks have set up branches or headquarters here.

The HKSAR Government has set up a steering group, including members of academia, regulatory bodies and the

In terms of ICT (information and communications tech-

industry, to identify ways of developing Hong Kong into a

nology), Hong Kong has the world’s fastest internet-ac-

financial technology hub.

cess speed (87.7 Mbps for average peak connection), a household broadband penetration rate of 83 percent and a

As the government’s investment promotion agency, Inves-

smartphone penetration rate of 77 percent.

tHK uses a one-on-one approach, offering Fintech companies tailor-made support, including marketing and public

More and more international players are establishing a lo-

relations assistance and participation in networking events.

cal foothold, including Accenture FinTech Innovation Lab and Nest-DBS accelerator.

“Looking ahead, Hong Kong needs to differentiate itself from other regional and global hubs, and identify the ver-

InvestHK has recently supported a number of fintech-relat-

ticals within which we have a competitive advantage. We

ed companies in setting up or expanding their businesses,

will also need to find ways to nurture local companies and

including Algomi (UK), Capco (Belgium), First Derivatives

attract global players,” Simon Galpin, Director-General of

(Ireland), Hundsun Technologies Inc (Mainland), Leverate

InvestHK, said.

(Israel) and SmartStream (UK). www.investhk.gov.hk

www.startmeup.hk

CMY

(Advertisement)

The rulebreaker

Data storage and moneylending get connected Text: John Cremer Photo: TNS The rapid emergence of the FinTech sector is giving entrepreneurs extensive scope to innovate and explore. Against a backdrop of evolving technologies and shifting consumer expectations, the way is open for them to create businesses which offer new operating paradigms or resolve challenges thrown up by the digital revolution. In some cases, the emphasis is on the financial side, perhaps finding new ways to bring borrowers and lenders together. In others, it is on making the tech aspects more user-friendly or secure. Either way, though, there is clearly a whole new area of opportunity which will continue to attract some of Hong Kong’s brightest minds. “What concerned us was that some of the most prominent, successful companies had been lulling users into putting their personal information into the ‘cloud’ and then finding ways to monetise that data,” says one such entrepreneur, Jack Poon, CEO of AtCipher.com. “We felt that was wrong and that there ought to be a better way for users to enjoy cloud services without compromising their private and personal information.”

Set up less than two years ago, the company aimed to solve this problem, looking at things from the customer, not the corporate, viewpoint. With this went the realisation that data breaches of one kind or another were increasing every year, and the various threats were becoming more targeted and ever more sophisticated. “While most cyber security companies offer solutions which provide ‘perimeter defence’, we felt strongly that protection should be extended to the data itself,” Poon says. He explains that data encryption is known to be effective. In principle, it could take billions of years to crack a 128-bit code, even with the most advanced supercomputer. However, for most companies, there is a trade-off between security and usability. They know that when data is encrypted, it is more difficult for users to access and share, so they tend to avoid this approach.

Jack Poon

For AtCipher.com, the key was to invent several technologies, for which patents are pending, which allow users to benefit from services in the cloud while maintaining their data privacy. This makes it possible to encrypt company and client data over existing infra-

Inside Startups

The rulebreaker

structure without an adverse impact on productivity or usability. “Our first year was spent developing the cryptographic framework and validating our proprietary technology to ensure that the algorithms and system can indeed solve the problem,” Poon says. “Right now, the focus is on building a viable product and achieving an optimal product-market fit through further discussions with some alpha users.” Since major financial institutions indicated that it may prove difficult to ratify the new technology for their highly regulated industry, sales efforts are currently directed at the B2C and B2B sectors. For the former, the plan is to offer AtCipher Drive, a product providing client-side encryption before sending data to public cloud storage. Users will be able to share encrypted data securely without having to learn new tools or change their usage “behaviour”. For the latter, there will be added functionalities relevant to the corporate IT environment, such as integration with private cloud storage and an audit trail. “We are still in the early stages, but the initial feedback indicates a growing demand for better data protection,” Poon says. “For the B2C segment, we plan to present our solution at various data security conferences to allow public review of the product and will launch a crowd funding campaign to obtain broader market validation,” The company is also applying to technology accelerators in the United States and Europe which focus on enterprise solutions. Most have a broad network of supporters and mentors and could help with introductions to potential customers and investment decision-makers. “Today, Hong Kong’s FinTech ecosystem is in its infancy, but I think disruptive innovation driven by entrepreneurs will play an increasingly important role,” Poon says. “However, we need to find ways

Mukesh Bubna

to activate a mentor community by leveraging the experience of retired professionals and industrialists and senior executives from the financial services industry. Such action would also help to attract more innovators and businesses to Hong Kong’s FinTech market.” For Mukesh Bubna, founder and CEO of Monexo Innovations, there is a similar balance to strike between steering a fledgling enterprise and considering larger-scale factors likely to shape the development of the FinTech sector. His start-up is now almost a year old and, over the last two months, the focus has been “on-boarding” new customers. Essentially, the business concept is to create an online marketplace to match borrowers and lenders outside the more traditional banking system. Typically, the lenders are people with at least HK$100,000 in liquid assets who are looking for steady returns better than the current deposit rates and without exposure to unwanted currency risk. Borrowers might be property owners receiving regular rental income from tenants – which provides the necessary cash flow and security – but who want a lump sum now. This could be to invest in other properties, something they prefer to do without having to negotiate a second bank mortgage at less than favourable terms. Loan requests are listed on the platform. This is done anonymously but with a clear description of all relevant terms and conditions. Prospective lenders can then propose to cover some, or all, of the requested loan at a specified rate of return. Bona fides, such as proof of ownership of an existing property and current rental income are provided and verified as necessary.

Inside Startups

The rulebreaker

“We are doing a lot of customer education to build awareness but, so far, the product has been well received,” Bubna says. “The platform, in terms of the technology, bank-end systems and building out the algorithms is ready, and the partnerships are in place for insurance coverage and to help us expand the client base. To date, dealing with the regulatory and legal aspects has probably been the most time-consuming part of the process, but we regard that as a good sign for ourselves and for customers.” As a general guideline, Monexo advises lenders to spread and diversify their loans, not commit everything to just one borrower. The company monitors borrower performance on repayments and will call and send reminder letters if things fall behind. “Lenders can reasonably expect returns of between 6 and 12 per cent per annum depending on the type of borrower they choose,” Bubna says. “There is enough liquidity in the platform, so people can lend immediately, but we don’t recommend anything. Each lender chooses the profile of borrower he or she wants to work with.” Everything is done electronically, with identities protected. Monexo’s generates its income from fees which borrowers pay up front and lenders pay every month. Charges only apply to successful transactions. “The regulators say this is a new industry, but it is really banking 2.0 and we are adding something to the value chain,” Bubna says. “We have studied the regulatory environment in Britain, the United States and China, and adopted best practices and the principles of common law. People know that, in any financial dealings, there

is an element of risk, but with an insurance package and by screening borrowers, we help to minimise that.” Planning ahead, the intention is to add to the platform. This may include “social” loans, bearing in mind that members of Hong Kong’s Filipino and Indonesian communities sometimes pay moneylenders up to 60 per cent, even when the money is needed to help victims of natural disasters. “As a business, you may want to become big quickly, but we are cognisant that it is important for us to walk before we run, so slow and steady is what we are looking for,” Bubna says. Photo: Reuters

Inside Startups

18 18

Funding

New accelerator programme in Hong Kong As the disruptive influence of financial technology on the world’s financial industry is increasingly viewed as a “game changer”, both at home and internationally, Hong Kong is being touted as a high-potential contender to wear the crown of “FinTech” hub in the Asia-Pacific region. “The reason why I am here in Hong Kong, and not Silicon Valley, is because I believe Hong Kong has got what it takes to really become a truly international FinTech hub,” says Simon Squibb, CEO at Nest Hong Kong, which invests in start-up and second-round capital raising enterprises. “Hong Kong has the business infrastructure, talent and culture to turn innovations into global winning

Text: Chris Davis

Photo: Reuters

solutions,” Squibb adds, explaining some of his reasons for believing Hong Kong is in a strong position to surge ahead in the global FinTech innovation race. To elevate the possibilities FinTech has to offer, DBS Bank (Hong Kong) and Nest Investment have launched a business start-up accelerator programme based in a state-ofthe-art 5,000-square foot workspace in the heart of Wan Chai. Squibb says the collaborative initiative will provide start-up enterprises with tools, systems and mentoring that entrepreneurs need to take their fledgling business concepts to the next level. Squibb says that as the largest business banking brand in Asia, DBS has the power to add important value to help start-up firms develop their businesses. “DBS can offer unparalleled access to their network of businesses contacts,” says Squibb. Looking at FinTech from a psychological angle, Squibb says with the possibility of owning a home becoming a remote possibility for many Hong Kong people, a vibrant FinTech landscape opens up new ways of generating wealth and could provide a new generation of aspirational entrepreneurs with a sense of purpose. Although not exclusively, the accelerator programme will support innovative startup businesses and entrepreneurs locally and from around the world in delivering breakthrough innovations and technologies in areas including artificial intelligence, big data and analytics, banking infrastructure, workflow and operational management, mobility and payments, risk monitoring and management, security and SME banking solutions.

Simon Squibb

HONG KONG HAS THE BUSINESS INFRASTRUCTURE, TALENT AND CULTURE TO TURN INNOVATIONS INTO GLOBAL WINNING SOLUTIONS

Inside Startups

20 20

Funding

However, Squibb stresses that while start-up participants will be guided through their business growth and development with the help from senior executives from DBS and Nest as well as other partners, there is no substitute for passion and a commitment to hard work. “We can give advice, provide access to funding and basically give young businesses a leg-up, but there is no alternative to working hard, having belief and accept there is the need to take a few risks along the way,” says Squibb, whose company has made investments in more than 40 start-up enterprises. Accelerator programme participants can also take advantage of DBS and Nest Demo Days and a Public Investor Demo Day, where their ideas could find support to further scale up.

Rob Findlay (centre).

Noting the rising potential for FinTech in Asia, Rob Findlay, senior vice-president experience design at DBS Bank, says Hong Kong and Singapore have the best of both worlds to build on current FinTech capabilities and become leading global FinTech hubs. “Both Singapore and Hong Kong have sound, solid well-established financial industries supported by talented people,” says Findlay. At the same time, he says both locations sit on the doorstep of fastgrowth, emerging markets that need the FinTech solutions and expertise Hong Kong and Singapore can offer. Findlay says the collaborative start-up accelerator programme with Nest Investments is another example of the different ways DBS is taking an active role in supporting FinTech development. “Technically and culturally, we take a multi-perspective view of the ways FinTech can help to transform the banking industry,” says Findlay, who, rather than a threat to traditional banking practices, sees FinTech as offering encouraging new possibilities. “There is not a market on the planet that is not interested in FinTech in some way, so there are advantages to being a first mover in the market,” adds Findlay. Internally, Findlay says considerable resources are being invested by DBS to drive innovation and digital banking. In addition to substantial financial investments to harness digital technologies, DBS organises collaborative computer programming competitions, referred to as hackathons. The latest Greater China hackathon involved employees from Hong Kong, China and Taiwan who together co-created 50 prototypes.

THERE IS NOT A MARKET ON THE PLANET THAT IS NOT INTERESTED IN FINTECH IN SOME WAY

(Advertisement)

BUILD A TEAM OF OVERACHIEVERS! As startup founders, your team is everything - the engine, the brain and the face of your business. However keeping them motivated and engaged can be very challenging... especially if you have never been the boss before! The answer to this challenge might lies in knowing the strengths and values of your team members, and learning to apply this knowledge towards increasing their productivity at work! Use Gallup's Clifton Strengths Finders to know your team better. With this proven tool, you get to: Know their natural mode to operate; get them into their flow Be aware of the type of job specs best suited for each individual staff Identify their potentials and shortcomings; know how to work around them Polish their star qualities and build a team of overachievers! Get a FREE consultation session with Avary Chong (Member of International Coach Federation, certified Gallup StrengthsFinder and member of NeuroLeadership Institute) and take the first step towards transforming your team, and make a real business impact.

at edpost.hk/gallup

Career

Photo: EPA

Hitch a ride on the career rocket

Text: Chris Davis

FinTech, initially driven by the coming together of tech-savvy entrepreneurs and venture capitalists, has emerged from its embryonic phase to a stage where its positive disruptive influences are seen as a major game changer for the financial services industry. Ralph Chan, DBS Bank (HK) vice-president, strategic planning and transformation, technology and operations, says his organisation has made a point of collaborating and engaging with start-up enterprises. “The banking mindset and momentum is changing,’’ he says. “In the past we used to work with big firms including IBM, but these days, far more we are collaborating with start-ups.’’ When it comes to jobs, Chan paraphrases Facebook COO Sheryl Sandberg’s speech to Harvard Business school students, saying that with Hong Kong’s FinTech sector expanding rapidly, if you’re offered a seat on a rocket ship, don’t ask what seat, just get on.

Ralph Chan (left) and Jim Kennedy (centre).

He adds, however, that one or two years working in the corporate banking industry can be helpful in learning about the overtrading systems and mechanisms. Torsten Duwenhorst, principal at KPMG Hong Kong, whose area of expertise is cybercrime investigation and forensic data analytics, make the point that “big four’’ firms are facing the same challenges as banking and financial organisations. “We are looking for ways to innovate ourselves through the use of FinTech so we can better help our clients,’’ says Duwenhorst, who gives as an example FinTech solutions being used to conduct anti-money laundering investigations. Jim Kennedy, application delivery CTO at UBS, explains how the company is moving away from tried and tested technologies to implement portfolio changes in a safe and reliable way, by looking for ways to implement new technologies that also meet objectives in an equally safe and reliable manner. “If we only focus internally on developing traditional technologies we could miss out on opportunities outside the bank that become the technologies of the future,’’ says Kennedy. Equally important, he adds, by partnering with FinTech enterprises UBS can plug in to the vision, freedom of thought, enthusiasm and trend insights entrepreneurial start-up firms can provide. With clear gaps identified between business growth and skills abilities, Kennedy says joining Hong Kong and the mainland’s fast-growing FinTech sector should be considered a serious career proposition. “Whether people join a progressive financial organisation that embraces technology, or take the risk of joining or setting up a startup, the way things are moving there are some great opportunities,’’ he adds.

Torsten Duwenhorst

IF YOU’RE OFFERED A SEAT ON A ROCKET SHIP, DON’T ASK WHAT SEAT, JUST GET ON.

Inside Startups

24 24

In the news

China’s Silicon Valley throws money at tech start-ups as government takes over More than 600 start-ups have sprung up on a street in China’s Silicon Valley in the last 12 months, as Beijing bids to turn its key technology hub into a start-up hotbed. Over 350 have received funding to scale up their businesses within a year of the government taking over Inno Way, a street in the capital’s Zhongguancun Science Park, according to the industrial park’s website. Zhongguancun is home to a raft of established Chinese technology companies, from PC maker Lenovo to search engine operator Baidu and leading smartphone maker Xiaomi. It is close to Peking University, China’s top institute of higher learning. Start-ups in the park are not faring too badly either, with average investment on Inno Way standing at 5 million yuan (US$805,000), park authorities says.

Text: Adrian Wan Photo: Simon Song

Before it was earmarked by the government, the 200-metre-long street was full of bookstores and small restaurants. It now plays home to over 4,000 start-ups and is crowded with funding and training institutions, as well as cafes that also serve as incubators. Start-ups that originated on the street have attracted a total investment of 1.75 billion yuan so far, according to the local government. China has been pushing innovation and entrepreneurship in a bid to reverse its recent economic slowdown and help it restructure. The State Council, China’s cabinet, recently approved a raft of measures aimed at making it easier to get start-ups off the ground. Moreover, at a meeting last week, it laid out a new vision for bringing entrepreneurship to the Chinese countryside. Beijing began offering start-ups on Inno Way a good deal more policy support in June 2014. Together with private company TITH Holdings, the local government spent 200 million yuan to acquire and renovate houses on the street last year. It also pledged to help tenant companies find angel investors while enjoying free office space and media coverage there. The street got a huge boost last month when premier Li Keqiang turned up at 3W Café, a famous hangout for start-up entrepreneurs. With the help of local authorities, start-ups can expedite the business registration process and obtain all the required business and tax licences, the park authorities wrote in a statement. Shenzhen, Shanghai and several other cities are also vying to claim the coveted title of China’s Silicon Valley.

CHINA HAS BEEN PUSHING INNOVATION AND ENTREPRENEURSHIP IN A BID TO REVERSE ITS RECENT ECONOMIC SLOWDOWN AND HELP IT RESTRUCTURE.

Inside Startups

26 26

Event

â&#x20AC;&#x2DC;Million Dollarâ&#x20AC;&#x2122; business bosses show the drive to succeed Text: John Cremer Photos: HKUST The fifth annual HKUST One Million Dollar Entrepreneurship Competition builds on the success of previous years by giving high-powered teams the inspiration and support to start new businesses. The initial 100-plus proposals were first whittled down to a shortlist of 16. These teams then took part in a tough assessment over two days designed to test both the technical viability of their plans plus general sales skills and broader business know-how. This involved an on-campus trade show, followed by an elevator pitch and a business plan presentation to a Final Round panel of judges composed of experienced entrepreneurs, venture capitalists and academics. Contestants were drawn mainly, but not exclusively, from the Hong Kong University of Science and Technology community. Not surprisingly, most proposals focused on technology-based business ideas, but health- and environment-related schemes and social en-

terprises are also encouraged. The intention is that winners will use cash prizes as seed capital to form companies and commercialise their concepts and inventions. In first place this year, and winner of the President’s Prize, were Parle, who take home a HK$300,000 cash award and various in-kind services such as free use of office space for one year at the HKUST Entrepreneurship Center. The project was originally inspired by the fact that people waste a lot of time online trying to find exactly what they want. The aim, therefore, was to devise an easier way of pinpointing the desired information accurately.

Teams prepare for their presentations

A methodology was developed after months of research into perceptual hashing algorithms by team founder Hamza Zia, a B.Eng majoring in computer science. The challenge then was to communicate the benefits of the technology in terms which were easy to understand, while fine-tuning the product based on user feedback and with the assistance of just two software developers. “The toughest part of the final round was convincing the judges that our product could attract users on a massive scale and keep growing,” says team spokesman Ben Tiede, joined by fellow MBA student Rikiya Masuda and computer science undergraduate Jenny Kang. “Many apps have been unable to grow successfully, but we believe we have a great way of achieving ‘virality’ based on our platform’s reach across the internet.” Inside Startups

28 28

Event

The next step will be to use some of their prize money to hire an additional developer and invest in efforts to further expand the user base. In part, that will involve taking on a number of “ambassadors” at HKUST to increase general awareness and help drive adoption of the app. At the same time, the team has plans to approach providers of MOOCs (massive open online courses) about using Parle to improve student retention on their platforms. “The competition was an incredibly rewarding experience for all of us,” says Tiede, who pays tribute to the professors and mentor who provided invaluable advice and guidance in honing ideas and creating a smart business plan. “We met influential people within Hong Kong’s investment community and had the chance to build, test and launch a beta version of our product, which is currently helping users save time and stay better informed while they browse the web. Along the way, we were also introduced to other entrepreneurs with great ideas.” The members of second-placed team Nanoprint no doubt fall into that category. Their project is basically to find ways of resolving some of the very practical issues that the printed electronics industry faces today. As they see it, the key is provide more design flexibility with metal pastes and metal inks, as a way of ensuring that next generation devices, whatever they might entail, can be manufactured at an affordable price. A secondary goal is for the “made in China” label to be seen as a guarantee of quality and technical expertise, not simply as a low-cost choice.

“We found the biggest challenge lies in scaling up the nano-material manufacturing process,” says team spokesman Dr Judy Zhang Di, a research associate in HKUST’s CBME (chemical and biomechanical engineering) department. “But, looking ahead, we have the confidence to overcome these difficulties thanks to our team’s extensive knowledge and hands-on experience in relevant areas.” The other team members are PhD students Tam Sze-kee and Khak Ho Lim, visiting scholar Dr Fung Ka-yip, and An Zhi, R&D manager of an OEM company specialising in printed electronics. The main adviser is Ng Ka-ming, chair professor of the CBME department. However, the Entrepreneurship Center also provided systematic guidance on planning and presenting a viable business model. And both the competition workshops and a panel of counsellors were instrumental in keeping things firmly on track. “As mentioned in our company’s mission statement, we would now like to lead the way into a bright new era of printed electronics manufacturing with a revolution in materials,” Zhang says. “We will be using our prize money to ‘push’ the product into the market, backed by quantitative evidence to show its merits.” Based on her experience, Zhang’s general advice to anyone thinking of taking part in next year’s competition is clear and concise. “You have to think like you’re an investor, a customer, a collaborator and a competitor.” Inside Startups

(Advertisement)

Enhance your career with an

MBA or POSTGRADUATE DEGREE Give yourself the advantage and stand out from the crowded job market Undertaking further study can radically change your career prospects. That’s why Education Post – our comprehensive online database with over 2,000 MBA & postgraduate courses – is your ultimate search engine.

Find a new course today.