The Applied Research Fund has ceased making new and follow-on investments after March 2005.
What is the Applied Research Fund?
The Applied Research Fund (ARF) is a venture capital fund to support technology ventures undertaken by local companies. Key features include :
- The Fund is managed by private-sector venture capital firms. The fund managers would assess the technical and commercial viability of proposed technology ventures. They would also determine the terms of the Fund's investment in a company.
- The company would hold all intellectual property rights arising from the project.
Background of the Applied Research Fund
The ARF is a government owned venture capital fund of $750 million set up in 1993 to provide funding support to technology ventures and research and development projects that have commercial potential. The longer term aim is to increase the technology capability and to enhance the competitiveness of local industry, thereby promoting high value added economic development in Hong Kong. The ARF is controlled and administered by the Applied Research Council (ARC), a company wholly owned by the Government and formed specifically for this role.
Starting from November 1998, private sector venture capital firms were engaged to manage the ARF. The fund managers would assess the technical and commercial viability of proposed technology ventures. They would also determine the terms of the Fund's investment in a company. Suitable investment proposal would be brought up to the Board of Directors of ARC for Public Mission Vetting.
Local companies would be eligible, including companies incorporated in the British Virgin Islands, the Cayman Islands or Bermuda, so long as the fund obtained would be channelled to the local subsidiaries incorporated in Hong Kong.
Technology businesses that have commercial potential would be considered.