Fintech startups to lead Hong Kong venture funding

Financial technology (fintech) startups are expected to remain the focus of venture capital in Hong Kong this year as investors channel money into fewer, more established companies, with total funding projected to reach $7.8b (US$1b).

Fintech firms accounted for the biggest share of venture investment last year, raising $4.2b (US$532m) out of the roughly $5b (US$638.2m) deployed across 32 funding rounds, according to data from Tracxn Technologies Ltd.

Two of the biggest deals involved fintech companies. PremiaLab HK Ltd. raised $1.7b (US$220m), whilst Red Dot Technology Ltd. got $837.8m (US$107m).

Investors backed fewer startups last year as venture deal volume fell by 30%, but committed larger sums to selected companies. The median investment rose from $39.2m (US$5m) to $54.8m (US$7m), according to Tracxn founder Neha Singh.