Venture Capital Fund to be Established for Start Up Industries
China is setting up a government venture capital fund that is said to be worth 40 billion yuan that will be used in supporting start ups in emerging industries as part of its latest move in supporting the private sector and foster innovation.
The establishment of the State venture capital investment guidance fund has the focus of supporting fledging start ups in emerging industries a s step in combining of technology and the market with manufacturing and innovations. These will also breed and foster sunrise industries for future companies and promote China’s economy to evolve to medium and high end sectors in which the government that promoting technology and green energy.
The government issued the statement after the meeting but didn’t release a timetable. But based on past experience it has shown that such fundings can be established in a few weeks once it’s announced. The venture capital market is small, but the legacy of the country’s decades of planned economy in the private sector development is subjected to a variety of restrictions.
For the first half of 2014, there are 83 new funds that were set up in China venture capital market and having fresh capital eligible for investment that surged 157 percent from a year earlier but still remains moderate.