Hong Kong’s First Equity Crowdfunding Platform for Professional Investors
Updated: Dec 4, 2019
Swartz, Binnersley & Associates acted on behalf of AngelHub in a licensing application for the first Hong Kong Securities and Futures Commission (“SFC”) approved equity crowdfunding platform for professional investors. In May 2019, the SFC issued two licences to AngelHub to undertake type 1 (dealing in securities) and type 4 (advising on securities) regulated activities.
The granting of the licences highlights Hong Kong’s supportive ecosystem to startups in adopting a regulatory regime to encourage growth to maintain its competitive edge as Asia’s financial hub. Commenting in the South China Morning Post, Karen Contet Farzam, AngelHub’s co-founder and chief executive, states that “Hong Kong has been an ideal market for start-ups as it is close to other Asia-Pacific countries, while it is an international market itself,” she added that “we are here to make a change – for Hong Kong investors to access the unicorns of tomorrow”.
Hong Kong boasts 9 home-grown unicorns, companies with over a US$1BN valuation, of which all have leveraged some form of technology. Contet Farzam states that “technology is going to be more and more important in our daily lives. AngelHub wants to provide professional investors with opportunities to invest in the early stages of startups. These startups can also raise funds”.
“We are pleased to have supported AngelHub in obtaining regulatory approval,” says Swartz, Binnersley & Associates managing partner Kristi Swartz, “the granting of the licences brings a new level of competition to Hong Kong, demonstrating that the city is willing adapt to see new concepts brought to market. It has been a privilege to work alongside AngelHub’s founders, Karen Contet Farzam and Karena Belin, and I look forward to supporting the growth of the business in the coming years”.
The Swartz, Binnersley & Associates team was led by managing partner, Kristi Swartz, with Appleby Hong Kong acting as offshore counsel.
Swartz, Binnersley & Associates is a grass roots Hong Kong law firm boasting comprehensive corporate and disputes practices. Our partners have over 40 years of combined experience in Hong Kong having served clients locally and globally. We are committed to supporting startups through to large international companies, and aim to make your business, our business.
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