Some Startup

Ideas for

Hong Kong

Patrick P. T. Leong

Co-Founder, Gigamon Inc.

Founder, Leong Research LLC

Intro

Born and grew up in Hong Kong

Attended La Salle Primary School and La Salle College

Went to the US for university and graduate school

Ph.D. in Applied Physics from Columbia University

Worked in development and management positions at Network

General/Network Associates, Cyras/Ciena

Co-founded Gigamon in 2004 on Traffic Visibility Network

As CTO and board member, helped took Gigamon public in 2013

(NYSE: GIMO)

Founded Leong Research LLC in 2015 to pursue dreams in

solving high-value scientific problems and bring them to

commercialization

Agenda

Building a startup in Hong Kong: Pros and Cons

Go Global

The Golden Questions behind every startup idea

Startup ideas in 2 Waves

Facilitators

On Education

For the entrepreneurs

Building a startup in Hong Kong

Advantages

Well-established legal and financial systems

Easy access to manufacturing resources in PRC

Hard-working, adaptive, cosmopolitan work force with

reasonable payroll cost

Hong Kong can better serve the needs of the Asian

Pacific market

Challenges

Limited space for R&D and industrial use

High cost of living

“Go Global”

1. Aim to sell your products and

services globally

A much bigger market than

just Hong Kong

De-risk from regional

economic downturns

2. Build the brand name

“Design in Hong Kong”

= Ingenuity + Quality

How? Start with a niche

to avoid the sharks

The Golden Questions

Is my product solving a pain point that

customers are willing to pay for?

Better: Can the product help them save

money or make money?

How large is the market?

(At least give an estimate)

How can I reach my customers to sell my product?

Can my product solution scale up?

Sometimes a great product comes from a simple tweak of

some existing technologies for a different use (Jackpot!)

First wave:

IT and non-pharma biotechReason: Time to market and minimal land use

IT

Solutions for serving dense populations

Event management software system

Virtual reality relaxation system

Online education software that can be easily localized

and connects to career advancements

Data analytic systems that can improve productivity

Systems for helping the elderly since population is aging

in many countries

Biotech

Medical diagnostics and devices

What about other areas?

Keep them as the second wave

Semiconductors

Capital intensive. Can stay as a design house and work

closely with other Asian chip makers

Energy generation and storage

Go for it if you have a disruptive solution. Don’t just

compete on price

Novel materials, nanostructures etc

R&D time is longer

Pharma-biotech

A long road. Drug discovery or delivery mechanisms need

regulatory approvals. Also highly protected by patents.

M&A a common exit

Government

Innovation and Technology

Commission, InvestHK

Create channels where

entrepreneurs can take

R&D findings from universities

to market

Land use for startups

Facilitators

Other organizations

Help local entrepreneurs to connect with mentors

who have gone through the various phases of a

startup

Offer a venue to share experience and mistakes

Provide guidance: overseas legal and tax systems,

reseller directories on various industries, cultural

differences etc. to facilitate startups to go global

Connect VCs, angel investors, legal, tax and other

professionals to entrepreneurs

Facilitators

On Education

Encourage self-learning and being hands-on

Achieving good grades is not the only way to

success

Develop students with communication skills,

team work and leadership skills

Society needs to be more open to products from

local startups rather than following brand names

Everyone needs to understand that failures in

startups are common. The most important thing is

to learn from the mistakes, get up and try again

A few words for entrepreneurs

Build a company with solid value

Not just one with high valuation

Watch the clock

Every business opportunity has a time window

Spend wisely, but treat your employees well

You will be surprised

Keep learning on the fly

Change is the constant

Thank you