Hong Kong Investment Corporation (HKIC), the government’s investment arm, has teamed up with venture capital firm Gobi Partners and the University of Hong Kong (HKU) to launch a fund on Tuesday to invest in technology start-ups spun off from the university’s research breakthroughs, according to an HKIC statement.

Gobi-HKU Fund I made two investments at its launch: Manifold Tech, which develops spatial intelligence for robotics, and AilsynBio, which focuses on artificial intelligence-driven drug design and recovery.

“The launch of Gobi-HKU Fund I, along with its swift and substantive deployment of capital, demonstrates the HKIC’s steadfast determination to foster synergy among the core sectors of innovation and technology – namely investment, industry, academia, research and government,” said HKIC CEO Clara Chan Ka-chai.

Chan told the South China Morning Post that the fund used a milestone approach, meaning it would invest a small amount in individual projects initially. When projects met predefined targets such as commercialisation, HKIC and partners could quickly top up from the pool of capital earmarked in the fund.

Backed by the government’s reserves, HKIC was established in 2022 to boost the city’s economy and innovation industry. It managed HK$62 billion (US$8 billion) in government funds and had invested in more than 190 projects as of February.

Besides direct investment, HKIC has also brought together start-ups and established companies to collaborate through networking activities. Last week, it announced the establishment of the Hong Kong RISC-V Alliance.