Government Grants for Hardware Startups: STP, ESS, BUD Routes

Hardware startups in Hong Kong face higher capital requirements than software startups and have access to specific grant programmes. Beyond the ITF ESS: the Smart Traffic Program (STP) supports transport-tech and EV-charging hardware development. The BUD Fund (Dedicated Fund on Branding, Upgrading and Domestic Sales) supports Hong Kong companies — including hardware startups — expanding manufacturing or sales into mainland China and other designated markets, providing up to HK$7 million in matching funds. The Recycling Fund supports companies developing recycling and waste management hardware. The most practical advice for hardware founders: map all available grants onto a timeline, noting application windows (many grants accept applications in specific cycles), matching fund requirements (most grants require the company to co-invest a percentage of the project cost), and the reimbursement model (the company spends first, claims later — requiring working capital management).