Pre-Seed Capital for Deep Tech: Grants, ITF, Convertible Notes

Deep tech startups face a capital gap that software startups do not: they need significant funding before they have a minimum viable product, because building a physical prototype or running a wet-lab experiment costs real money. The HK pre-seed funding landscape for deep tech combines: ITF (Innovation and Technology Fund) grants — providing up to HK$10 million for R&D projects, disbursed on a reimbursement basis (the startup spends first, then claims). University seed funds — HKUST’s Entrepreneurship Fund and similar programmes at other universities provide HK$500,000-2,000,000 in seed capital, often structured as convertible notes. Angel investors with technical backgrounds — typically former researchers or industry executives who understand the technology and can evaluate it before commercial traction exists. The key strategic advice for deep tech founders: start the grant application process 6-12 months before you need the money, because ITF processing times are long and reimbursement cycles create a working capital gap.