Dalton Venture, a Chinese life sciences-focused venture capital firm, will expand operations to Hong Kong and invest in start-ups, eyeing new opportunities as mainland companies grow overseas on the back of the city’s efforts to become a technology hub.
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With dual headquarters in Shanghai and Shenzhen, Dalton Venture will apply for an asset-management licence in Hong Kong next month and expects to start pursuing investments next year after receiving government approval, founding managing partner Steve Sun told the South China Morning Post in an interview on Friday.
Dalton Venture aims to seize opportunities brought about by “the wave of Chinese companies going global and their international spin-offs”, Sun said on the sidelines of an event the company hosted in Hong Kong on Friday.
Established in 2015, the venture capital firm expects the size of its potential new fund in Hong Kong to range between HK$800 million to HK$1 billion (US$103 million to US$129 million), according to Sun.
“Hong Kong still offers strong subsidies, which remains highly attractive,” he said. “While competition has become so fierce on the mainland, Hong Kong is building its innovation and technology sector from the ground up … [The city’s] talent and capital resources draw entrepreneurs, and we naturally follow.”
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That optimism reflects how Hong Kong, long known as an international financial centre, has gained momentum in the fields of technology and biomedicine.