Alibaba created the Alibaba Hong Kong Young Entrepreneurs Foundation earlier in the year. The company has allotted $450 million to go into the fund in a news announcement today.

The fund is NT$10 billion ($306 million) for Taiwan, while the Hong Kong program is assigned HK$1 billion ($130 million) in cash. Alibaba explained that the mission of the Fund is to support entrepreneurs realize their dreams and visions.

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A spokesperson for the company stated that "the fund is a move to help entrepreneurs reach their goals and visions."

Both funds will invest in startups and small businesses to help them to grow and develop. Not only does the fund include cash, but Alibaba services will also be included. These services are both technical assistance and training that will help these companies boost their services while also offering a synergy between investments and Alibaba, tekkie reported.

According to StreetWise Journal, the company wants to help entrepreneurs that are going to sell products in Mainland China. It is expected that the companies invested in will be encouraged to use Alibaba's e-commerce system to succeed.

Alibaba has made the fund non-profit. What this means is that the company will replenish the fund if an invested business goes under. If the company decides to exit an investment, this money will go to help other startups and entrepreneurs reach their business dreams.

Cindy Chow, an eight-year Alibaba veteran will be executive director of the fund she was most recently the company's senior director of international finance. Alibaba said that the capital would be regulated in partnership with local investment firms. Gobi Ventures firm VC was named as the first, but the Alibaba expects to make further selections in order to add more variety to the line-up.

The launch of the fund is the second major part of news for Hong Kong's startup scene for this month. Earlier, MIT announced plans to create an innovation hub in the city-state which will be closely connected to the local startup ecosystem and it aims at helping young founders, particularly in the hardware space.

TagsTaiwan, Hong Kong, Cindy Chow, Andrew Lee, China Development Industrial Bank