Hong Kong has become a key hub for software startups targeting the mainland Chinese market and beyond. Thanks to its strong business environment and deep ties to the Greater Bay Area, the city continues to thrive. Additionally, its open information flows further support innovation.

Tech Startups Reach Record Numbers

Hong Kong’s tech startup sector is growing rapidly. In 2024, the number of startups reached 4,694, marking a 10% increase from 4,257 in 2023. Notably, over 600 of these focus on financial technology.

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Moreover, a February report from InvestHK revealed that these startups now employ 17,651 people, reflecting a 7% rise from the previous year.

Hong Kong Surpasses Shenzhen in Unicorn Count

At the same time, Hong Kong’s startup boom contrasts with Shenzhen’s slowing innovation scene. In a surprising shift, Hong Kong now has more unicorns—startups valued over $1 billion—than Shenzhen.

According to CB Insights, Hong Kong boasts nine unicorns, while Shenzhen has only six. Furthermore, the Hong Kong government, which counts more than ten unicorns under broader definitions, aims to increase this number to 30 by 2032. Just a decade ago, in 2014, the city had none.

Local Entrepreneurs Drive the Boom

Meanwhile, local entrepreneurs are playing a bigger role in Hong Kong’s startup ecosystem. King Leung, global head at InvestHK, emphasized that founders now have a clearer vision and a stronger grasp of challenges. Consequently, the number of local startup founders has grown to 72%, up from 68% last year.

In addition, Hong Kong’s top IT unicorns include HashKey Group, ZA Bank, WeLab, and Airwallex. Leung also highlighted the success of startups incubated at Cyberport and Hong Kong Science & Technology Park, such as Animoca Brands, GoGoX, LaLaMove, and SmartMore.

Key Reasons Behind Hong Kong’s Tech Growth

Leung attributed Hong Kong’s rapid tech expansion to several factors. Specifically, he pointed to proximity to mainland China, preferential market access, a global business outlook, strong intellectual property laws, and unrestricted capital flow.

He further explained, “Hong Kong plays a vital role in bridging mainland China and the world, particularly within the booming tech and startup landscape of the Greater Bay Area.”

Additionally, government efforts to attract skilled professionals from across the border have significantly contributed to startup growth.