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BIZCHINA / Center

State venture capital fund to support small tech firms

By Hao Zhou (chinadaily.com.cn)
Updated: 2007-07-17 14:21

The Ministry of Finance and the Ministry of Science and Technology?will
jointly offer?a special fund of 100 million yuan (US$12.8 million) to
encourage (VC) companies to invest in technology-based small- and
medium-sized enterprises (SMEs).

Enterprises and service institutes pioneering in investment and?VC
management for minor technology enterprises and infant medium and small
technology enterprises will benefit from the fund.

The fund will support VC investments in four ways. First, it will buy
shares in VC investors; second, it will invest jointly with VCs in
technology startups; third, it will provide some allowance against risks
to VCs that have invested in technology startups; fourth, it will
subsidize infant small ventures with promising profits but high risks.

To ensure standardized operations, the Ministry of Finance and the
Ministry of Science and Technology will bring in a third-party organ to
assess the performance of the fund.

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