A 70% chunk of the fund will be dedicated to seed and early stage companies.
No single investment will exceed 50 million yuan ($7.1 million) and the valuation of the companies must be less than 500 million yuan ($71.1 million).
The funds are set up in the Beijing-Tianjin-Hebei region, the Yangtze River Delta region and the Guangdong-Hong Kong-Macao Greater Bay Area under a joint initiative of the National Development and Reform Commission (NDRC) and the Ministry of Finance (MOF).
Investments will rolled out in batches, targeting 49 sub-funds and 27 direct projects already on the preliminary list. The funds will function as “angel investors” and share risks associated with early stage of innovation.
Companies innovating in integrated circuits, new displays, advanced materials, aerospace, low-altitude economy, and biomedicine, which were designated as “emerging pillar industries” are some likely targets for the funds.
While the investments under the fund will be managed by professional institutions, NDRC official Bai Jingyu said they will follow the government’s policy direction.
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(Edited by : Shoma Bhattacharjee)
