Cover Cindy Chow, with Alibaba Group since 2007, is the executive director and CEO of Alibaba Hong Kong Entrepreneurs Fund (AEF), which aims to support local entrepreneurs (Photo: Alibaba Hong Kong Entrepreneurs Fund)
Cindy Chow, with Alibaba Group since 2007, is the executive director and CEO of Alibaba Hong Kong Entrepreneurs Fund (AEF), which aims to support local entrepreneurs (Photo: Alibaba Hong Kong Entrepreneurs Fund)
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Cindy Chow, executive director and CEO of the Alibaba Hong Kong Entrepreneurs Fund, reveals the most sought-after sectors and traits venture capitalists seek in startups in today’s challenging funding landscape
In the Where’s the Money series, we speak with industry experts about the trends and ideas impacting Asia’s wealth and financial markets
The startup boom in Hong Kong continues. According to InvestHK—the government body responsible for attracting foreign investment—the number of startups has surged by 40 per cent since 2020, reaching 4,698. Most of these companies operate in the fintech and technology sectors.
Yet the playbook has fundamentally shifted. In today’s more challenging fundraising climate, entrepreneurs face mounting pressure to demonstrate clearer value propositions and more sustainable business models. As founders remain determined to build the next breakthrough company, the question becomes: how can they better position themselves to secure capital?
Read more: Where’s the Money: what it takes to get funded in the Philippines’ tougher, smarter VC scene
We sat down with Cindy Chow, the executive director and CEO of the Alibaba Hong Kong Entrepreneurs Fund (AEF), to explore the current state of venture funding in Hong Kong and the strategies startups need to thrive. She joined Alibaba Group in 2007, which operates some of the world’s largest e-commerce platforms, and is currently the senior director of finance.
Since its founding in 2015, AEF has deployed over US$93 million in strategic capital across 80 startups, catalysing an additional US$2.8 billion in co-investment. Its portfolio showcases category-defining winners: global immersive entertainment pioneer Sandbox VR, founded by Gen.T Leader of Tomorrow Steve Zhao; NASDAQ-listed genomics leader Prenetics, co-founded by Danny Yeung; and Asia’s fintech unicorn WeLab, founded by Asia’s Most Influential honouree Simon Loong.
Read more: Where’s the Money: why Singapore’s early-stage startups are facing a VC funding shortage
Above Pharus Diagnostics, an AI-driven disease detection platform, won the Jumperstarter for One Earth 2025 pitch competition by Alibaba Hong Kong Entrepreneurs Fund (Photo: Alibaba Hong Kong Entrepreneurs Fund)
Pharus Diagnostics, an AI-driven disease detection platform, won the Jumperstarter for One Earth 2025 pitch competition by Alibaba Hong Kong Entrepreneurs Fund (Photo: Alibaba Hong Kong Entrepreneurs Fund)
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What’s the state of local venture funding? Is it drying up, healthy or exceeding expectations? What are the internal and external factors causing this?
Cindy Chow (CC): The local venture funding landscape in Hong Kong remains cautiously optimistic in 2025, with activity stabilising following the 2023 downturn, though still below previous peak levels.
Investors remain selective due to broader economic uncertainties, but notable government initiatives such as the Hong Kong Investment Corporation (HKIC) and Raise+ Scheme are injecting momentum into the local startup ecosystem.
Due to the global headwinds, investors are conducting more rigorous due diligence and taking longer to close transactions. However, Hong Kong’s active IPO activity, such as the listing of Contemporary Amperex Technology and Mixue in the city, reflects cautious optimism in the market.
Looking ahead, the market is expected to maintain steady growth, healthy in its fundamentals but tempered by macroeconomic realities, resulting in a more measured investment pace compared to the exuberance of earlier years.
Is the money flowing to specific sectors? Which sectors are seeing an increase and decrease in funding?
CC: Funding is increasingly concentrated in emerging sectors, such as AI applications in fintech and healthtech, as AI drives greater efficiency across various industries. Within AI, investors are doubling down on fintech, supported by Hong Kong’s robust regulatory framework and financial systems, while healthtech gains traction due to ageing demographics and strong access to the China market.
To capture the values that AI is bringing, we launched the US$150M AEF NextGen Fund last year, which targets AI-driven startups with proven product-market fit. AI is transforming global business, and with a global investment mandate, our fund is well-positioned to benefit from the opportunities in various sectors where AI adoption is accelerating.
Read more: All successful entrepreneurs follow these 3 core values, says Jack Ma
Above Chow and Kenny Ho, partner at NextGen Partners, AEF’s investment arm (Photo: Alibaba Hong Kong Entrepreneurs Fund)
Chow and Kenny Ho, partner at NextGen Partners, AEF’s investment arm (Photo: Alibaba Hong Kong Entrepreneurs Fund)
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How does the current situation affect how you invest as a venture capitalist? What do they look out for in startups in these circumstances?
CC: In the current economic climate, we recognise many startups are encountering significant fundraising challenges. As venture capitalists, we’ve adopted a more rigorous investment framework that prioritises two key criteria. First, business models demonstrating clear product-market fit with scalable potential; and second, the ability to balance top-line growth with disciplined cash flow management. This selective approach allows us to identify ventures with both near-term resilience and long-term value creation potential during these uncertain market conditions.
Today, as Hong Kong’s one of the most active venture players, we remain unwavering in our mission: to identify companies which combine cutting-edge technology with scalable business models and to fuel the next wave of innovation in Hong Kong and the Greater Bay Area. The launch of our AEF NextGen Fund—focused squarely on AI-driven disruption—underscores our conviction in Hong Kong’s future as a global tech hub. We don’t just invest; we build ecosystems, unlock synergies and create lasting impact.
Read more: Tech-driven innovation defines Hong Kong’s new cohort on the Tatler Gen.T Leaders of Tomorrow 2025
Above Chow spoke on stage at Jumperstarter, a startup initiative by AEF, in April 2025 (Photo: Alibaba Hong Kong Entrepreneurs Fund)
Chow spoke on stage at Jumperstarter, a startup initiative by AEF, in April 2025 (Photo: Alibaba Hong Kong Entrepreneurs Fund)
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How do you see startups responding to the current situation?
CC: We see Hong Kong’s most resilient startups adapting with agility, focusing on strategic partnerships, sustainable unit economics and leveraging government support to navigate macroeconomic challenges.
I can see local startups are actively diversifying into new markets to mitigate risks. While funding conditions are more selective than in previous years, this has fostered a disciplined approach to growth, with founders prioritising profitability and capital efficiency over rapid scaling at all costs.
For our portfolio companies, we’re leveraging our investor network and Alibaba’s ecosystem to empower them to secure investment and explore international business opportunities. This strategic approach not only expands market access but also builds resilience against local market fluctuations.
What should startups be focusing on in this current situation?
CC: We strongly recommend our portfolio companies to prioritise two fundamental strategies. First, relentlessly refine your business model to ensure both scalability and sustainable unit economics. This discipline separates resilient startups from the rest. Second, pursue market diversification with strategic precision, whether through Greater Bay Area integration, the opening up of the Middle East market or capturing Southeast Asia’s growth opportunities.
At AEF, we amplify these efforts through more than just capital, our investment team provides hands-on scaling guidance, while our unique access to Alibaba’s ecosystems and global networks helps open doors to partnerships, customers and follow-on funding. This comprehensive support framework reflects our commitment to not just fund startups, but to actively build Hong Kong’s next generation of category-defining companies.
I remain confident in Hong Kong’s innovation and technology future, bolstered by strong government initiatives, our global gateway position and thriving sectors like AI and fintech that continue to attract talent and investment.
Now, meet the Gen.T Leaders of Tomorrow 2025, who are shaping the future of Asia.
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Based in Hong Kong, editor Yoyo Chow covers the people and ideas redefining Asia’s future—from cutting-edge innovation and AI to bold moves in sustainability and diversity. She also drives content for Tatler Gen.T in Hong Kong, a platform and community spotlighting the region’s next generation of startup founders, creatives and changemakers.
Before that, she was a video journalist producing content for international TV and digital platforms, including Reuters and South China Morning Post. If you have a powerful story to share, she’s all ears. Send press materials, event invites and any inquiries to yoyo.chow@tatlerasia.com.
