Hong Kong Burn Rate Calculator: HKD Runway Guide for Fintech & APAC Startups (2025)

What is Burn Rate for Hong Kong Startups?

Burn rate is the speed at which your Hong Kong startup spends its cash reserves, typically measured monthly in Hong Kong Dollars (HKD). For founders operating in Hong Kong's high-cost environment while targeting APAC markets, understanding your burn rate is critical to maintaining runway and securing follow-on funding from cross-border investors.

The formula is straightforward: Monthly Burn Rate = Total Monthly Expenses - Monthly Revenue. If your Hong Kong fintech startup spends HKD 500,000 per month on salaries, office rent in Central, AWS infrastructure, and marketing while generating HKD 100,000 in revenue, your net burn rate is HKD 400,000/month.

Hong Kong startups face unique burn rate dynamics compared to Singapore or Shenzhen counterparts. While office costs in premium districts like Central or Quarry Bay can exceed HKD 80-120 per square foot annually, Hong Kong offers unparalleled access to mainland China markets, international banking infrastructure, and a mature ecosystem of investors familiar with both Western and Chinese deal structures.

How to Calculate Your Hong Kong Startup's Burn Rate in HKD

Calculating burn rate for a Hong Kong-based startup requires accounting for the city's specific cost structure and multi-currency operations common in APAC-focused businesses:

Step 1: Total Your Monthly Operating Expenses (HKD)

Salaries and Benefits: HKD 180,000-280,000 for a 5-person technical team (senior engineer: HKD 50,000-70,000/month, product manager: HKD 45,000-60,000/month)
Office Rent: HKD 40,000-120,000/month depending on location (Cyberport co-working: HKD 8,000-15,000/desk, Central Grade A: HKD 100-150/sq ft)
Cloud Infrastructure: HKD 15,000-45,000/month for AWS/Alibaba Cloud (many HK startups use hybrid for China + international)
Marketing and Customer Acquisition: HKD 30,000-80,000/month (Google Ads, LinkedIn, WeChat if targeting mainland)
Professional Services: HKD 20,000-50,000/month (legal, accounting, regulatory compliance for fintech/cross-border)
Software and Tools: HKD 8,000-20,000/month (Slack, Notion, GitHub, analytics tools)

Step 2: Calculate Monthly Revenue (HKD)

Sum all incoming cash from customers, pilots, or early contracts. For pre-revenue startups, this is HKD 0. For early-stage SaaS companies serving APAC clients, this might be HKD 50,000-200,000/month.

Step 3: Apply the Burn Rate Formula

Net Burn Rate = Total Expenses - Revenue. Example: HKD 480,000 (expenses) - HKD 120,000 (revenue) = HKD 360,000 net burn/month.

Step 4: Calculate Runway

Runway (months) = Cash in Bank / Monthly Net Burn. If you have HKD 5,400,000 in the bank with HKD 360,000 monthly burn, your runway is 15 months.

Hong Kong Burn Rate Benchmarks by Startup Stage and Industry

Hong Kong burn rate benchmarks differ significantly based on your startup's stage, industry vertical, and market focus (local Hong Kong, Greater Bay Area, or pan-APAC):

Pre-Seed Stage (Friends & Family, Cyberport Incubation)

Typical Burn: HKD 120,000-250,000/month
Team Size: 2-3 founders, 1-2 contractors
Key Expenses: Founder salaries (often deferred), co-working space at Cyberport or HKSTP (HKD 10,000-20,000/month), MVP development
Funding Source: Cyberport Incubation Programme (up to HKD 530,000), HKSAR Innovation and Technology Fund, angel investors

Seed Stage (Early VC from HK or Singapore)

Typical Burn: HKD 350,000-600,000/month
Team Size: 5-8 employees (engineering, product, commercial)
Key Expenses: Competitive salaries to retain talent vs. Singapore/mainland offers, product-market fit iterations, early customer pilots
Funding Source: Local VCs (Gobi Partners, Vectr Ventures), Singapore-based funds (Monk's Hill, Openspace Ventures), or Greater Bay Area investors

Series A (Growth Stage with APAC Expansion)

Typical Burn: HKD 800,000-1,500,000/month
Team Size: 15-30 employees across engineering, sales, operations, compliance
Key Expenses: Sales team for APAC expansion, marketing across multiple markets (Hong Kong, Singapore, SEA), regulatory compliance for fintech (SFC licensing can cost HKD 500,000-2M)
Funding Source: International VCs with APAC presence (Sequoia India/SEA, Lightspeed, GGV Capital), strategic corporate investors

Industry-Specific Burn Patterns in Hong Kong

Fintech (Payments, Wealth Management, Crypto): Higher burn due to regulatory compliance costs. Obtaining a Money Service Operator (MSO) license or Virtual Asset Service Provider (VASP) license requires significant legal and compliance investment. Expect HKD 100,000-300,000/month in additional regulatory overhead at seed stage.

E-commerce and Logistics: Moderate burn with focus on inventory management and last-mile delivery partnerships. Hong Kong's small domestic market means early expansion to mainland China or Southeast Asia is common, adding complexity. Typical burn: HKD 400,000-700,000/month at seed stage.

SaaS and Developer Tools: Lower burn relative to hardware or logistics. APAC SaaS startups based in Hong Kong can operate lean teams (HKD 300,000-500,000/month) while serving customers across time zones with English/Mandarin support.

DeepTech and Biotech: Highest burn rates due to R&D costs and longer commercialization timelines. Hong Kong Science Park tenants in biotech can burn HKD 1-2M/month at later stages, often supplemented by government grants (Innovation and Technology Fund offers up to HKD 10M for R&D projects).

Why Hong Kong Office Costs Drive Burn Rate (And How to Optimize)

Hong Kong consistently ranks among the world's most expensive cities for office space, with Grade A office rents in Central averaging HKD 130-180 per square foot annually. For a 1,000 sq ft office, this translates to HKD 130,000-180,000/month before fit-out costs and management fees.

Cost Comparison: Hong Kong vs. Singapore vs. Shenzhen

Hong Kong Central: HKD 130-180/sq ft/year (USD 16-23/sq ft/year)
Singapore CBD (Raffles Place): SGD 10-15/sq ft/month (~HKD 58-87/sq ft/year, ~35-50% cheaper than Hong Kong)
Shenzhen Futian District: CNY 200-350/sq m/month (~HKD 30-50/sq ft/year, ~70-75% cheaper than Hong Kong)
Beijing Chaoyang CBD: CNY 350-600/sq m/month (~HKD 50-85/sq ft/year, ~50-65% cheaper than Hong Kong)

How Hong Kong Founders Reduce Office Burn:

Cyberport Smart-Space: Co-working memberships start at HKD 2,500/month per desk, with access to incubation programs offering subsidized space (HKD 5,000-10,000/month for 4-6 desks)
Hong Kong Science Park (HKSTP): Incubatees receive subsidized office space at ~50% market rates for 12-24 months, plus access to labs and prototyping facilities
Kowloon East (Rising Tech Hub): Kwun Tong and Kowloon Bay offer Grade A space at HKD 35-50/sq ft/year (~60-70% cheaper than Central), with improving MTR connectivity
Hybrid Remote Models: Many Hong Kong startups adopt Singapore-style distributed teams, maintaining a small HK office for client meetings while allowing remote work to reduce headcount density

The strategic trade-off: Hong Kong's premium office costs buy you proximity to multinational banks, corporate innovation labs, and mainland China decision-makers. For fintech startups targeting institutional clients or those requiring frequent Shenzhen/Guangzhou travel, the Central location can justify the burn rate impact.

Hong Kong vs. Singapore vs. Shenzhen: Burn Rate and APAC Expansion Trade-offs

Choosing your APAC headquarters directly impacts burn rate, funding access, and market entry strategy. Here's how Hong Kong compares to its primary competitors:

Hong Kong: Gateway to China with International Infrastructure

Burn Rate Level: Highest (office and talent costs 20-40% above Singapore, 60-80% above Shenzhen)
Funding Ecosystem: Strong for cross-border deals (RMB + USD funds), fintech-friendly investors, but smaller VC ecosystem than Singapore or mainland China
Market Access: Best for mainland China market entry (Greater Bay Area integration, no language barrier, proximity to Shenzhen tech hub), 1-hour flight to major APAC cities
Regulatory Environment: Common law system (easier for Western investors), but fintech licensing can be slow (SFC, HKMA, Customs). Virtual Asset Service Provider (VASP) regime launched in 2023 provides clarity for crypto startups
Talent Pool: Strong bilingual (English/Cantonese/Mandarin) talent, but expensive and competitive with Singapore/mainland offers

Singapore: APAC Hub with SEA Focus

Burn Rate Level: High but 20-30% lower than Hong Kong (especially office costs)
Funding Ecosystem: Largest and most mature in Southeast Asia, with government co-investment schemes (EDBI, SGInnovate, Temasek) and deep international VC presence
Market Access: Best for Southeast Asia expansion (Indonesia, Vietnam, Thailand, Philippines), strong for India connections, limited direct China access
Regulatory Environment: Pro-business, fast company setup (1-2 days), fintech-friendly (MAS regulatory sandbox), strong IP protection
Talent Pool: Excellent English proficiency, strong engineering talent from NUS/NTU, competitive salaries but slightly below Hong Kong

Shenzhen: China Tech Powerhouse with Lower Costs

Burn Rate Level: Lowest (60-75% cheaper than Hong Kong for office and talent)
Funding Ecosystem: Massive RMB capital availability, Shenzhen Stock Exchange ChiNext board for growth companies, but complex for foreign founders (WFOE structure required)
Market Access: Direct China market access (1.4B population, Tencent/Huawei ecosystem proximity), hardware manufacturing ecosystem, limited for international expansion
Regulatory Environment: Complex for foreign entities, strict capital controls (difficult to move USD in/out), data localization requirements, but improving for tech startups
Talent Pool: Deep engineering talent (Tsinghua/HKUST grads migrate to Shenzhen), hardware expertise, lower English proficiency outside tech sector

Beijing: Policy Center with DeepTech Focus

Burn Rate Level: Moderate-high (cheaper than Hong Kong, similar to Singapore for talent, expensive office in CBD)
Funding Ecosystem: Largest RMB VC ecosystem in China, strong government support for AI/semiconductor/biotech, Zhongguancun tech hub
Market Access: Best for enterprise/government sales in China, AI/deeptech ecosystem, limited for APAC international expansion
Regulatory Environment: Close to central policymakers (benefit for fintech/AI), but subject to rapid regulatory changes
Talent Pool: Top-tier AI and engineering talent from Tsinghua/Peking University, competitive but less expensive than Hong Kong

Hong Kong's Strategic Advantage: Cross-Border Optionality

Despite higher burn rates, Hong Kong remains optimal for startups pursuing a "best of both worlds" strategy—raising USD capital from international VCs while accessing mainland China customers. Examples include fintech companies serving Hong Kong/mainland clients, SaaS platforms with bilingual product interfaces, and logistics/supply chain startups connecting China manufacturing with global e-commerce.

Many successful APAC startups adopt a "Hong Kong HQ + Shenzhen R&D + Singapore Sales" structure, balancing Hong Kong's higher burn rate with operational leverage in lower-cost markets.

Cyberport and HKSTP: Government Support to Extend Your Runway

Hong Kong's government-backed incubators provide critical non-dilutive funding and subsidized resources that can reduce your burn rate by HKD 100,000-300,000 in the first 12-18 months:

Cyberport Incubation Programme

Funding: Up to HKD 530,000 in cash allowance over 24 months (paid in tranches based on milestones)
Office Space: Subsidized co-working space at Cyberport Smart-Space (valued at HKD 15,000-25,000/month if purchased commercially)
Mentorship: Access to Cyberport's network of 300+ mentors, corporate partners (Microsoft, Amazon Web Services, Standard Chartered)
Focus Areas: Fintech, AI/ML, blockchain, digital entertainment, smart living (IoT, healthtech)
Application: Quarterly intakes, requires business plan and product demo/prototype, ~15-20% acceptance rate

Hong Kong Science and Technology Parks Corporation (HKSTP) Incubation Programme

Funding: Up to HKD 428,000 in cash allowance for Incu-Tech Programme (24 months), plus equipment grants up to HKD 300,000
Office and Labs: Subsidized workspace at Science Park (~50% below market rate), access to wet labs (biotech), prototyping facilities (hardware), cleanrooms (semiconductors)
Follow-on Support: HKSTP Venture Fund can invest HKD 2-8M in graduates of incubation programmes
Focus Areas: Biotech, medtech, AI/robotics, advanced manufacturing, green tech, new materials
Application: Rolling basis, requires technical differentiation and scalability potential

Innovation and Technology Fund (ITF)

Funding: Various schemes offering HKD 1-10M+ for R&D projects, with government covering up to 100% of approved costs
Popular Programmes: University-Industry Collaboration Programme (UICP), Partnership Research Programme (PRP), Enterprise Support Scheme (ESS)
Use Cases: DeepTech startups developing novel AI algorithms, biotech companies conducting clinical trials, hardware startups prototyping at HKSTP

Impact on Burn Rate: A typical Cyberport incubatee receives HKD 530,000 over 24 months (avg. HKD 22,000/month) plus free office space (HKD 20,000/month value), effectively reducing net burn by HKD 40,000-50,000/month during the programme. This can extend an early-stage startup's runway from 12 months to 16-18 months, providing critical additional time to reach product-market fit before raising institutional capital.

Multi-Currency Burn Rate: Managing HKD, USD, and RMB Operations

Hong Kong startups often operate in multiple currencies, creating unique burn rate management challenges:

Typical Multi-Currency Scenario:

Revenue: USD invoices for international SaaS clients, HKD for local Hong Kong customers, potentially RMB for mainland China sales
Expenses: HKD salaries and office rent, USD cloud infrastructure (AWS billed in USD), RMB payments to Shenzhen contractors or Alibaba Cloud
Bank Accounts: HKD operating account, USD account for VC funding, potentially offshore RMB account for China operations

Currency Risk Management Strategies:

Natural Hedging: If you earn USD revenue but pay AWS bills in USD, keep USD cash in USD accounts rather than converting to HKD (avoids FX fees and timing risk)
HKD-USD Peg Stability: Hong Kong Dollar is pegged to USD at 7.75-7.85, providing predictability for HKD-USD conversions (unlike SGD or RMB which fluctuate freely)
RMB Conversion Limits: Strict capital controls limit RMB-HKD conversions; use Cross-Border RMB Settlement schemes if operating substantially in mainland China
Forward Contracts: Larger startups (Series A+) use FX forward contracts to lock in rates for major expenses (e.g., 12-month USD cloud infrastructure prepayment)

Accounting for Multi-Currency Burn:

Convert all currencies to a single reporting currency (typically USD for international VCs, HKD for local-focused startups) using month-end exchange rates. Track currency-specific cash balances to avoid forced conversions at unfavorable rates. Many Hong Kong accounting firms (PwC, Deloitte, local specialists like Kaizen) offer multi-currency bookkeeping services for HKD 8,000-20,000/month.

When to Worry: Red Flags in Your Hong Kong Burn Rate

Certain burn rate patterns signal trouble for Hong Kong-based startups, especially when approaching fundraising:

Runway Below 6 Months with No Revenue Traction: Hong Kong fundraising cycles (seed to close) average 4-8 months, longer than US or Singapore. If you have less than 6 months runway and aren't generating revenue or hitting clear milestones, start fundraising immediately or cut burn by 30-40%.
Burn Increasing Faster Than Revenue: If monthly burn grows from HKD 400K to HKD 700K while revenue only grows HKD 50K to HKD 100K, your unit economics are deteriorating. Investors (especially APAC funds) will question path to profitability.
Office Costs Exceeding 25% of Total Burn: For seed-stage startups, office rent above HKD 150K/month (25% of a HKD 600K burn) is unsustainable. Move to Cyberport, HKSTP, or Kowloon East to right-size this expense.
Hiring Ahead of Revenue Milestones: Adding headcount before proving product-market fit is a common mistake. In Hong Kong's expensive labor market, every premature hire costs HKD 45,000-70,000/month fully loaded (salary + MPF + benefits).
Regulatory Costs Consuming 20%+ of Seed Funding: Fintech founders sometimes underestimate Hong Kong regulatory costs. If SFC licensing, legal structuring, and compliance are consuming HKD 1-2M of a HKD 5M seed round, reassess your regulatory strategy or consider a lighter-touch MVP approach first.
Over-Reliance on Government Grants Without Commercial Traction: Cyberport/HKSTP funding is excellent for extending runway, but if 100% of your funding is non-dilutive grants with no customer revenue or VC validation by month 18-24, you may struggle to raise institutional capital.

Actionable Burn Rate Reduction Tactics for Hong Kong Startups

If you need to extend runway by 3-6 months without raising capital, these Hong Kong-specific tactics can reduce burn by 20-40%:

Relocate to Kowloon East or Cyberport: Moving from Central (HKD 150/sq ft) to Kwun Tong (HKD 35/sq ft) saves HKD 95,000/month on a 1,000 sq ft office. Cyberport Smart-Space can reduce this to HKD 15,000-25,000/month total.
Hybrid Mainland China Team: Hire engineers in Shenzhen (HKD 30,000-45,000/month vs. HKD 50,000-70,000 in Hong Kong) who can commute to Hong Kong weekly or work remotely. Requires WFOE setup in China (HKD 100,000-200,000 one-time) but saves HKD 80,000-120,000/month on a 4-person engineering team.
Optimize Cloud Infrastructure Across Providers: Many Hong Kong startups use AWS for international customers and Alibaba Cloud for mainland China users. Moving China traffic to Alibaba Cloud can save 30-50% on bandwidth costs due to better China connectivity and lower RMB pricing.
Negotiate Deferred Compensation with Advisors: Rather than paying HKD 15,000-30,000/month for advisors, offer equity (0.25-1% with 2-year vesting) and defer cash compensation until Series A.
Apply for All Available Government Grants: Beyond Cyberport/HKSTP, explore Technology Voucher Programme (up to HKD 600,000 for technology solutions), BUD Fund (HKD 7M for mainland/ASEAN market development), and D-Biz (digital transformation grants).
Renegotiate SaaS Subscriptions: Many US-based SaaS tools offer startup discounts (50-100% off for first year). Apply to accelerators (AWS Activate, Google for Startups, Microsoft for Startups) for HKD 100,000+ in free cloud credits.
Part-Time CFO Instead of Full-Time: Early-stage startups don't need a full-time CFO (HKD 80,000-120,000/month). Fractional CFO services (HKD 20,000-40,000/month for 2-3 days) handle fundraising prep, financial modeling, and investor reporting.
Pause Non-Essential Marketing: If CAC (Customer Acquisition Cost) exceeds HKD 5,000 and LTV (Lifetime Value) is unproven, pause paid ads and focus on founder-led sales, content marketing, and partnerships—reducing burn by HKD 30,000-80,000/month.

How to Present Burn Rate to Hong Kong and APAC Investors

Hong Kong and broader APAC investors evaluate burn rate through a different lens than US VCs, emphasizing capital efficiency and path to profitability earlier in the lifecycle:

What Hong Kong VCs Want to See

Capital Efficiency Metrics: Burn multiple (Net Burn / Net New ARR) below 2x is excellent, 2-3x is acceptable, above 4x requires strong justification. Hong Kong/Singapore investors scrutinize this more than US coastal VCs.
Runway Clarity: Explicitly state current runway (e.g., "15 months at current burn") and what milestones you'll hit before needing to fundraise again (e.g., "HKD 2M ARR, 5 enterprise customers, expanded to Singapore").
Currency-Specific Breakdown: If operating multi-currency, show HKD/USD/RMB burn breakdown and FX risk management strategy. Demonstrates operational sophistication valued by cross-border investors.
Comparison to Regional Benchmarks: Frame your burn against Hong Kong/APAC peers (e.g., "Our HKD 500K/month burn is 20% below typical seed-stage fintech in Hong Kong, while our growth rate is 30% above average").
Government Grant Leverage: Highlight non-dilutive funding secured (Cyberport HKD 530K, ITF grant HKD 1M), showing resourcefulness and reducing perceived risk for investors.

How to Structure the Burn Rate Slide in Your Deck

Create a dedicated "Financials & Runway" slide showing:

Bar Chart: Monthly burn rate (HKD) for last 12 months, with projected burn for next 12 months under two scenarios (current trajectory vs. post-funding accelerated growth)
Cash Runway Line: Overlay cumulative cash balance showing current runway endpoint
Key Metrics Table: Current monthly burn (HKD 480K), net burn (HKD 360K after revenue), runway (15 months), burn multiple (2.4x)
Milestone Annotations: Mark key achievements on timeline (e.g., "Reach HKD 2M ARR - Month 9", "Break-even - Month 22")

Common Questions from APAC Investors

"Why Hong Kong instead of Singapore?" Be ready to justify higher burn rate with mainland China market access, specific industry advantages (fintech regulatory clarity, logistics proximity), or founder/team location rationale.
"What's your path to profitability?" APAC investors ask this earlier than US VCs. Have a credible answer showing gross margin expansion and operating leverage (e.g., "Gross margin improves from 40% to 70% as we move upmarket; we reach breakeven at HKD 5M ARR in 24 months").
"How will you manage FX risk as you scale?" If earning USD but burning HKD, explain hedging strategy or natural hedges (matching currency of revenue and expenses).
"Can you operate leaner?" Be prepared to present a "Plan B" showing 30% burn reduction scenario (where you'd cut, impact on growth) to demonstrate flexibility and capital discipline.

Burn Rate Calculator: Step-by-Step Template for Hong Kong Startups

Use this comprehensive template to calculate your monthly burn rate in HKD and project runway scenarios:

Monthly Operating Expenses (HKD)

Salaries (gross): _______
Employer MPF (5% mandatory): _______
Employee benefits (insurance, training): _______
Office rent: _______
Office utilities and management fees: _______
Cloud infrastructure (AWS/Alibaba Cloud): _______
SaaS tools (Slack, GitHub, analytics): _______
Marketing and advertising: _______
Professional services (legal, accounting, tax): _______
Regulatory and compliance: _______
Travel (mainland China, APAC markets): _______
Miscellaneous (insurance, subscriptions): _______
TOTAL MONTHLY EXPENSES: _______

Monthly Revenue (HKD)

Subscription revenue (SaaS MRR): _______
Transaction revenue: _______
Professional services revenue: _______
Other revenue: _______
TOTAL MONTHLY REVENUE: _______

Burn Rate Calculation

Gross Burn Rate (Total Expenses): _______
Net Burn Rate (Expenses - Revenue): _______
Current Cash in Bank (HKD): _______
Runway (Months) = Cash / Net Burn: _______

Scenario Planning

Best Case (30% burn reduction): _______ months runway
Current Case (status quo): _______ months runway
Growth Case (30% burn increase post-funding): _______ months until next fundraise

Review this calculation monthly and update your board/investors quarterly. Aim to always maintain 12+ months runway to avoid distressed fundraising situations.

Mainland China Market Access: Does Higher Hong Kong Burn Pay Off?

The critical question for founders choosing Hong Kong despite higher burn rates: does proximity to mainland China markets justify the premium?

When Hong Kong's Higher Burn Makes Strategic Sense:

Fintech Serving Cross-Border Payments: Hong Kong's Cross-Border RMB Settlement infrastructure and banking relationships justify the HQ location for payment processors, remittance platforms, or wealth management serving Hong Kong + mainland clients
Logistics/Supply Chain Connecting China Manufacturing: 1-hour from Shenzhen factories, Hong Kong-based supply chain SaaS or logistics platforms can serve both Chinese suppliers and international buyers efficiently
Enterprise SaaS Selling to MNCs in Greater Bay Area: Hong Kong office provides credibility when selling to multinational corporations operating China + APAC, who prefer local legal entities for procurement
Hardware Startups Needing Shenzhen Ecosystem Access: Weekly trips to Shenzhen factories, component suppliers, and contract manufacturers justify Hong Kong base for product development leadership while keeping finance/legal in HK

When Singapore's Lower Burn Makes More Sense:

Pure-Play SEA Focus: If targeting Indonesia, Vietnam, Thailand, Philippines primarily (not China), Singapore's lower burn and better SEA connectivity outweighs Hong Kong's China access
International SaaS with No China GTM: Global SaaS selling to US/Europe/APAC (excluding China) benefits from Singapore's larger VC ecosystem and 20-30% lower burn rate
Regulatory-Heavy Industries (Financial Services, Healthcare): Singapore's faster regulatory approvals (MAS sandbox, HSA digital health pathways) can offset higher Hong Kong burn if China market isn't critical

The data: Hong Kong startups successfully entering mainland China markets typically achieve 30-50% of revenue from China within 24-36 months of launch, justifying the higher burn rate. Startups that fail to crack the China market often relocate to Singapore or shut down Hong Kong operations after Series A, having incurred 30-40% higher cumulative burn without corresponding revenue benefit.

Key Takeaways: Optimizing Your Hong Kong Startup's Burn Rate

Calculate Burn Rate Monthly: Track Total Expenses - Revenue in HKD, and monitor runway (Cash / Net Burn) to maintain 12+ months buffer before fundraising
Hong Kong Benchmarks: Pre-seed (HKD 120K-250K/month), Seed (HKD 350K-600K/month), Series A (HKD 800K-1.5M/month) vary by industry and APAC expansion strategy
Office Cost Optimization: Leverage Cyberport Smart-Space (HKD 10K-20K/month) or HKSTP subsidized space instead of Central offices (HKD 100K-150K/month) to extend runway by 6-9 months
Government Support Matters: Cyberport incubation (HKD 530K over 24 months) plus subsidized space can reduce net burn by HKD 40K-50K/month in early stages
Multi-Currency Management: Track HKD, USD, and RMB exposure separately; leverage HKD-USD peg stability but watch RMB conversion restrictions for China operations
Hong Kong vs. Competitors: Accept 20-40% higher burn than Singapore/Shenzhen only if mainland China market access or cross-border positioning justifies the premium
APAC Investor Expectations: Emphasize capital efficiency (burn multiple below 3x), path to profitability (breakeven timeline), and strategic rationale for Hong Kong base vs. alternatives

Ready to calculate your exact burn rate and model different runway scenarios? Visit ICanPitch.com to access our free Hong Kong Burn Rate Calculator with HKD-specific templates, multi-currency tracking, and APAC fundraising benchmarks. Get instant analysis of your runway and recommendations for optimizing burn rate based on your stage and industry vertical.