foundershk Demo Day: Strengthening Hong Kong's Startup Ecosystem

FoundersHK: Revitalizing Hong Kong’s Startup Landscape

FoundersHK was established with the intention of bolstering Hong Kong’s startup ecosystem, which has faced challenges stemming from over two years of socio-political unrest and the impact of the COVID-19 pandemic. The organization, initially conceived as a network for events and mentorship, recently hosted the inaugural demo day for FoundersHK Accelerate, its equity-free accelerator initiative.

Introducing the Accelerate Program

This program was designed to equip Hong Kong-based startups with the necessary tools to secure funding and achieve global scalability. Eleven startups, representing a diverse range of industries – including pet care, financial technology, insurance, and education – presented their ventures to an audience of approximately 500 mentors and potential investors.

The selection of these startups was conducted by the founders of FoundersHK: Alfred Chuang, a co-founder of BEA Systems (acquired by Oracle in 2008 for $8.5 billion); Edith Yeung, a former general partner at 500 Startups; and Philip Lam, a co-founder of Homecourt. Chuang and Yeung also serve as partners at Race Capital, a venture firm located in Hong Kong.

A Mission to Restore Confidence

A key objective of FoundersHK is to reignite optimism within Hong Kong’s startup community. Yeung explained that her commitment arose from witnessing protests in Hong Kong in 2019. She felt compelled to contribute by fostering entrepreneurship and supporting founders, leading to the creation of FoundersHK.

Furthermore, the organization aims to facilitate increased funding opportunities for Hong Kong startups. Yeung noted a trend where local companies often receive limited investment from Hong Kong-based investors, with most substantial funding originating from overseas sources.

Building a Robust Network

FoundersHK actively connects startups with mentors, many of whom are Hong Kong natives working at prominent venture capital firms and technology companies such as Facebook, Microsoft, LinkedIn, Apple, and Grab. The organization began hosting events in 2019, and has continued to deliver educational content online throughout the pandemic.

The decision to operate as an equity-free program stems from a desire to prioritize cultural change. Chuang emphasized that Hong Kong’s focus on financial gain can be surprising to those accustomed to non-profit initiatives. He believes fostering networking and knowledge sharing is crucial, as entrepreneurs learn best from one another.

Cultivating a Collaborative Environment

Chuang observed that Hong Kong founders may initially hesitate to discuss their difficulties, but are eager to do so once they realize they share common challenges. This shared vulnerability fosters a sense of community and drives cultural evolution.

Hundreds of startups have already benefited from FoundersHK’s mentorship programs. The launch of the accelerator program was a direct response to requests for more comprehensive support prior to investor engagement. Bonnie Cheng, formerly a venture partner at 500 Startups, was brought on board to lead FoundersHK Accelerate.

Expanding Support and Global Reach

The program provides weekly consultations with FoundersHK’s leadership and access to a mentorship network comprising individuals from Sequoia Capital, Goldman Sachs, Alibaba, Monks Hill, and Matrix Partners. Yeung highlighted the strong support from Hong Kongers eager to contribute to the local startup scene.

Recent efforts have focused on preparing startups for demo day, ensuring they accurately represent their value during pitches – a further aspect of the cultural shift FoundersHK is promoting. Chuang stated that a significant portion of their work involves connecting startups with potential investors.

Facilitating International Expansion

Recognizing the limited size of the Hong Kong market, FoundersHK assists startups in identifying partners in key international markets, including Southeast Asia, the United States, and mainland China.

Over 100 investors from these regions attended the FoundersHK Accelerate demo day. Chuang noted that this level of international investor participation was unprecedented for a Hong Kong startup event.

“This represents a significant milestone, and we intend to build upon this success with future programs,” Chuang concluded. “Bonnie’s expertise is invaluable, and our aim is to continually expand and refine these initiatives.”

FoundersHK’s Inaugural Cohort: A Detailed Overview

Sleekflow is a B2B sales platform specifically designed for the needs of social commerce businesses. A significant number of sellers within the social commerce space utilize platforms like WhatsApp and other messaging applications for customer interaction and sales finalization. The absence of a unified central system often leads to administrative overhead and a loss of crucial data that could otherwise enhance conversion rates. Sleekflow provides a SaaS-based selling solution, enabling businesses to automate customer journeys – such as abandoned cart recovery – and analyze sales performance effectively. Its integration capabilities extend to messaging apps, social networks, and CRM systems like Salesforce. Sleekflow intends to broaden its international reach through strategic partnerships with channel partners, primarily targeting midmarket and enterprise-level organizations.

Restaurant Management Revolutionized

DimOrder positions itself as a comprehensive “super app” for restaurant management, currently serving 5% of restaurants in Hong Kong. The company’s co-founder, Ben Wong, leveraging his family’s experience in the restaurant industry, aimed to develop a solution that minimizes operational labor costs and maximizes profitability. DimOrder’s features encompass order taking, delivery services integrated with logistics providers across Hong Kong, and marketing functionalities. Furthermore, it manages inventory procurement, payment processing, and provides detailed analytics. Future plans include expanding its front-end offerings to include central kitchen and school lunch ordering for 108 Hong Kong schools, while bolstering its back-end with working capital loans, inventory control, and HR systems. Expansion into Southeast Asia is slated for the following year.

Streamlining Cross-Border Logistics

Spaceship is a logistics platform concentrating on the complex and fragmented cross-border courier, express, and parcel delivery market. Having already served over 100,000 customers, Spaceship empowers sellers to compare service providers, declare shipment details, schedule delivery time slots, process payments, and track packages throughout the entire delivery process. Beyond its core services, Spaceship also offers consumer-facing options like logistics booking and relocation assistance, with plans to introduce new verticals including a marketplace and travel planning tools. The company’s expansion strategy prioritizes Taiwan, followed by entry into markets such as Singapore, Thailand, and Japan.

Accelerated Talent Acquisition

FindRecruiter is a bounty recruiting platform designed to significantly accelerate the talent acquisition process for businesses. Co-founder Lawton Lai, drawing on a decade of experience as a recruiter, noted that traditional methods typically require around 52 days to fill a position. FindRecruiter aims to reduce this timeframe to approximately 17 days by connecting employers with a network of over 500 on-demand recruiters across six Asian countries, each specializing in specific fields. The platform broadcasts job postings and intelligently matches employers with recruiters based on industry, expertise, and specific requirements. Recruiters utilizing the platform can reportedly increase their commissions by 25% and save 30 hours per month on prospecting. Its clientele includes both startup unicorns and established blue-chip corporations.

Real-Time Manufacturing Insights

PowerArena is a deep-learning analytics platform focused on monitoring and optimizing manufacturing operations. Currently serving the electronics and automotive industries, with clients including Wistron and Jabil, PowerArena addresses the fact that despite automation, over 72% of manufacturing work is still performed by human operators. Manufacturers utilizing PowerArena install 1080p cameras connected to the platform for real-time analysis. For instance, if production slows down, the platform can pinpoint the cause, such as maintenance activities in a specific area of the factory.

Automated Restaurant Expansion

WadaBento assists restaurants in expanding their reach and increasing profitability through the deployment of automated vending machines in high-traffic locations. To date, the company has sold 140,000 bento boxes in Hong Kong. Traditionally, restaurants seeking expansion face the costly options of opening new locations or relying on delivery applications. WadaBento offers a patented vending machine solution that dispenses lunch boxes prepared by restaurants. Food is maintained at temperatures above 65 degrees Celsius during delivery and storage, with hygiene monitored via IoT devices. WadaBento holds patents in Japan, the U.S., and China, and recently secured a partnership with Hong Kong’s largest fast-food chain, alongside its first international shipment to Japan. The company anticipates deploying over 200 machines by the first half of 2022.

Reducing Fashion Waste Through Resale

Retykle is dedicated to minimizing fashion waste by simplifying the resale of maternity and children’s clothing. Co-founder Sarah Garner, with a decade of experience at luxury fashion houses like LVMH, highlighted that children typically outgrow 1,700 items of clothing by age 18, yet only about 5% of children’s clothing enters the secondary market. Retykle aims to increase the circulation of these items, offering clothing for babies through teenagers. The platform operates on a consignment model: sellers ship clothing to Retykle for inspection and listing. Upon sale, sellers receive email notifications and payment via cash or credit. Retykle plans to launch in Singapore next month and in Australia in 2022.

Scalable and Customizable Tech Education

Preface Coding is a tech education platform providing scalable yet customizable coding classes. Students can book sessions with teachers on-demand, choosing between virtual or in-person instruction. The platform focuses on teacher training, with most classes conducted in a 1:1 format. It caters to a diverse student base, including children aged 3-15, university students (particularly Asian students studying abroad in the U.S. and Australia), and senior professionals in finance, management, and consulting. Strategic partnerships with universities and banks are in place, and the platform intends to expand globally.

Accessible and Convenient Pet Care

ZumVet is a pet care startup offering video vet consultations, house calls, and pharmacy deliveries, including medication and at-home diagnostic tests. Co-founder Athena Lee explained that ZumVet was created to serve pet owners lacking a regular veterinarian or residing in areas with limited veterinary clinic access. Veterinarians provide remote consultations, develop treatment plans, and offer support, or conduct house calls. ZumVet collaborates with a network of independent vets and offers subscription plans to enhance affordability.

Immersive STEAM Education

Big Bang Academy was established to meet the growing demand for STEAM (Science, Technology, Engineering, Arts, and Mathematics) education, striving to make learning “as compelling as a movie, fun as a theme park, and educational as a classroom.” Its accredited curriculum features videos and personalized lesson plans, complemented by hands-on experiment kits delivered to students’ homes. The platform currently boasts 200 interactive sessions and a 70% course completion rate, a notably high figure for an edtech platform. Its business model incorporates both B2B partnerships with educational organizations and B2C subscription models, with approximately 80% of its customer base being recurring. Big Bang Academy plans to diversify its content and develop learning toys.

Microinsurance for Modern Lifestyles

YAS Microinsurance is an insurtech startup offering policies that can be activated in as little as five seconds, covering activities like running, biking, or hiking accidents. It recently established its first partnership with Kowloon Motor Bus, a major Hong Kong public bus company, to provide coverage for passengers against loss, theft, or accidental medical expenses. Launched four months ago, YAS Microinsurance reports $800,000 in committed revenue, with approximately 6,300 policies activated in recent months and around 600 new policies activated weekly.

Update: Story corrected to reflect that Philip Lam, not Phil Chen, created FoundersHK.