<p>    The Startup Ecosystem Ranking rating for 2017 was published, which lists the cities and territories where the start-up ecosystem is best developed. This year there have been noticeable changes in the rating.</p><p>   The report was prepared by the Startup Genome, an American organization whose mission, she said, is to "spread the start-up revolution around the globe, delivering it to every city, so that as many people as possible benefit from the economic benefits that it brings".</p><p>   Several years ago, the company developed and launched the software product Startup Compass, which measures the utility index of the international ecosystem of start-ups, taking into account more than 50 indicators: the results achieved by start-ups, investments, the productivity of young companies, the infrastructure they created, the level of talent of their teams, trends, entrepreneurial spirit, the demand for specialization and much more. The program gathered information on 50 thousand start-ups operating worldwide today.</p><p>   In the top three of the list are still Silicon Valley, New York and London. The most important sensation was that the fourth and eighth places were Chinese cities - Beijing and Shanghai. The ranking was obviously appreciated by the fact that enterprising start-ups wishing to register a company in China, the government offers practical assistance to businessmen with extensive experience and simplified access to investments.</p><p>   Chinese cities were in TOP10 thanks to the company Ofo - the only start-up-"unicorn" in the territory of China. Startup is engaged in renting a popular in China transport - bicycles; its capitalization recently exceeded 1 billion US dollars.</p><p>   Closure of the Chinese market does not allow Chinese cities to enter the TOP3. As a rule, start-ups from China can not easily overcome the borders of the domestic market and enter the international level. Therefore, only a few young businessmen manage to enter the international market.</p><p>   Colleagues from Singapore bypassed startups from the technology center, located on the shore of the Bay of San Francisco in terms of talent. The first place in this category of Singapore helped to take an optimal combination of price and a decent level of local labor. Singapore's innovative companies are opening the youngest start-ups, whose average age does not exceed 28 years. At the same time, 8 out of 10 team members already have at least two years of experience in start-ups. Despite the fact that in the general ranking of Startup Ecosystem Ranking 2017 Singapore has moved from 10th to 12th place, the advantages that are provided here start-ups, including foreign ones, are very attractive.</p><p>   The government of Singapore, perhaps the most advanced in the world in the development of the IT industry. Seeking to create an analogue of Silicon Valley here, the authorities allocate "tons" of money for all sorts of grants and powerful support for business initiatives. This attitude is partly facilitated by the almost complete absence of elections and, as a result, political struggle - thanks to this, the government can look far ahead. Local authorities purposefully select the most talented minds with the help of a well-developed scholarship program.</p><p>   This small country has a very advantageous position to become an Asian version of Silicon Valley. While India and China are attracting more money, Singapore offers a minimum level of bureaucracy and the most powerful legislation. A new company can be opened online in 15 minutes. Thus, Singapore is an excellent starting base for access to larger markets in the region, which do not have these advantages.</p><p>   As the best of the Asian markets, Singapore is "overrun" with money. A large share of private venture capital is backed by state co-financing, which helped Singapore surpass many neighboring countries, except for the giants - India and China - in terms of total investment. This city-state has already registered more than 55 thousand start-ups that create jobs.</p><p> </p><p><strong>In Hong Kong part of the taxes will be returned to innovative companies</strong></p><p>   Another great place where you can register an innovative company is Hong Kong. As early as the spring of 2016, Hong Kong launched a special program to support innovative companies. Although there have been subsidies and grants here before, the Hong Kong government has decided to move further in this direction and at the legislative level has offered to return a portion of taxes to all owners of innovative companies. Get a partial refund can be local and foreign companies, including startups working in such areas as:</p><ul><li>IT;</li><li>robotics;</li><li>biotechnology;</li><li>electronics.</li></ul><p>   Corporate tax in Hong Kong is quite low - only 16.5 percent. The authorities approved subsidies of $ 1.5 billion (a small percentage of which is set aside for tax refunds) to ensure that an even larger number of businessmen engaged in innovation wanted to open a company in Hong Kong. Although the percentage is not so significant, the Hong Kong government has responded positively to the work of the new tax refund program and, probably, in the near future even more companies will be able to receive benefits and return from 30 to 50 percent of the income tax, in this way, the income tax rate to 8.25 percent.</p><p>   But in order to be able to take advantage of Hong Kong's tax breaks, an innovative company will need to take a place in one of the Hong Kong technoparks, which currently provide businesses with affordable offices and workstations. Thus, having an office in one of the technoparks of Hong Kong, the company can count on tax benefits, as well as the possibility of opening a current account in one of the Hong Kong banking institutions.</p><p>   In the table below you have the opportunity to compare Singapore and Hong Kong in terms of opportunities for opening up startups:</p><table border="1" cellspacing="0" cellpadding="0"><tbody><tr><td width="170" valign="top"><p align="center"><b> </b></p></td><td width="387" valign="top"><p align="center"><strong>Singapore</strong></p></td><td width="413" valign="top"><p align="center"><strong>Hong Kong</strong></p></td></tr><tr><td width="170" valign="top"><p>Population</p></td><td width="387" valign="top"><p>5.5 million</p></td><td width="413" valign="top"><p>7 million</p></td></tr><tr><td width="170" valign="top"><p>Advantages</p></td><td width="387" valign="top"><p>· State support for beginning businessmen, investors and business angels;</p><p>· Contacts in Southeast Asia.</p></td><td width="413" valign="top"><p>· Hong Kong is the best free economy in the world and has an index of opportunities and globalization number one. This is the most difficult and harsh stock exchange in the world, which in 2015-2016 ranked first in the IPO (194.8 billion Hong Kong dollars (25.1 billion US dollars));</p><p>· Hong Kong is the world leader in private equity and RMB services (Renminbi);</p><p>· On the territory of Hong Kong are head offices of world corporations. This is the brightest example of an ideal financial center with the strongest IR, GR, PR-agencies, which simplifies entering the market;</p><p>· Visa regime - for 140 states from 14 to 180 days free of charge;</p><p>· Hong Kong is a super-connector between China and the rest of the world. It has an ideal location - 4-5 hours of flight to any key Asian city;</p><p>· From Hong Kong you can easily get into the business and financial news of the world community;</p><p>· Hong Kong is a world where Google, Facebook, Instagram, Twitter, WatsApp and Asian analogues of video sharing sites, search engines, social networks and instant messengers are side by side: reneren.com, taobao.com, tudou.com, youku.com, alibaba.com, qq.com and Baidu search engine with a group of satellites.</p></td></tr><tr><td width="170" valign="top"><p>Minuses</p></td><td width="387" valign="top"><p>· It is not easy to attract and retain good employees, in particular, in IT;</p><p>· A small market hinders scalability, but allows you to test a business model for 5 million people.</p></td><td width="413" valign="top"><p>· Since Hong Kong is the Special Administrative Region of the PRC, as in China, there is government censorship;</p><p><br />· For a faster and more successful entry into the Asian market, not self-sufficient offices in Hong Kong are needed, but partnerships with local companies and the involvement of local experts, professional SMO, CEO and Asians;</p><p>· Here it is necessary to support the solution of social problems: technological and financial development, ecology, "green theme" - is inherent in any of the programs listed.</p></td></tr><tr><td width="170" valign="top"><p>Cost of doing business</p></td><td width="387" valign="top"><p>A high standard of living and expensive rent are minimized by benefits from the state for start-ups. In general, the costs of doing business are typical for a developed market.</p></td><td width="413" valign="top"><p>High standard of living, expensive rent, expenses are characteristic for the developed market. But InvestHK provides tremendous support for the ecosystem: it helps business angels, invests in accelerators and incubators, thereby setting up a system of grants, partnership, intellectual and financial support for entrepreneurs.</p></td></tr><tr><td width="170" valign="top"><p>What to expect</p></td><td width="387" valign="top"><p>Dynamic, business, highly educated metropolis.</p></td><td width="413" valign="top"><p>Highly educated, ultra-dynamic metropolis with a professional financial and entrepreneurial climate. Here, a developed legal system and business infrastructure, secured and loyal consumers are priceless factors for the success of a start-up.</p></td></tr><tr><td width="170" valign="top"><p>Business culture</p></td><td width="387" valign="top"><p>A professional business climate with a characteristic rivalry between private and governmental resources for the attention of talented entrepreneurs.</p><p>Singapore has a very developed legal system and technological infrastructure, which is priceless for the success of start-ups.</p></td><td width="413" valign="top"><p>One of the most influential and numerous community of private investors in the world.</p><p>At the heart of the business culture is Asian collectivism and hierarchy, well-known to Russians.</p></td></tr><tr><td width="170" valign="top"><p>Why Go</p></td><td width="387" valign="top"><p>The hub office in Singapore is ideal for testing a business model and entering the market of the Asia-Pacific region.</p></td><td width="413" valign="top"><p>Headquarters in Hong Kong will be an ideal solution for those who plan to start work in China and scale their product in the Asia-Pacific region.</p></td></tr><tr><td width="170" valign="top"><p>Priorities</p></td><td width="387" valign="top"><p>Smart Nation/City, CyberSecurity, DigitalHealth, EdTech, FinTech, General Mobile, Corporate Innovations, MediaTech.</p></td><td width="413" valign="top"><p>Mobile - 27%, e-commerce - 21%, EdTech - 16%, Gaming - 12%, FinTech - 8%, Healthcare - 8%, Wearable - 4%, Social media - 4%. There are new opportunities for art / design (more than 400 artists and 77 galleries) and F &amp; B startups (Food &amp; Beverage: for 70 million tourists there are 24 thousand points of HoReCa).</p></td></tr><tr><td width="170" valign="top"><p>Capabilities</p></td><td width="387" valign="top"><p>· Assistance in business development from the public fund Spring;</p><p>· TAX-deduction for business angels, incubation technology scheme from 500 thousand Singapore dollars, grants from 250 thousand Singapore dollars, business angel scheme from 2 million US dollars, international businessmen with a name - from 3 million US dollars;</p><p>· Eatly-stage venture fund from 10 million US dollars;</p><p>  · ACE and iJAM - start-up grants, incubation and acceleration programs in strategically important sectors of the world economy;</p><p>  · Scheme of monetization and opportunities for creating white-label with the Singapore ministries and corporations.</p><p> </p><p>This is not all opportunities for start-ups in Singapore. The main thing is the minimization of venture risks and excellent opportunities for A and B-rounds.</p></td><td width="413" valign="top"><p>· For start-ups: technological and design incubation programs, microfinance scheme, TSSSU - technological support for students, New Creative Micro Fund, Co-investment matching fund, accelerations for startups in media, mobile and financial technologies, B2B, smart cities, networking events and dating with service providers, assistance with research, visa support, PR and marketing, contacts during expansion.</p><p>· Special privileges in the field of branding, design: a separate fund for marketing development - SME Marketing Fund, BUD program for industrial corporate design, a scheme for Smart-design and business design.</p><p>· Collaborations with universities and industry under the UICP program, technological and incubation support program (iTSP): R &amp; D financial discount, grant grants for patents and internships in technology development, public product tests in conjunction with ministries, corporations, Enterprise Support Scheme (ESS), expert loans on expansion, the system of financing and grants for SME.</p></td></tr></tbody></table><p></p><p style="text-align: center;"><em>For more information, you can contact with CASTLE FAMILY OFFICE experts via email:  <span lang="EN-US"><span face="Calibri" size="3"><strong><a href="mailto:info@castle-familyoffice.sg">info@castle-familyoffice.sg</a></strong></span></span></em></p>