The National Entrepreneurship Investment Guidance Fund has set sail and is targeting quantum technology

C114 News, December 26th (Yunqing) According to the National Development and Reform Commission, today (December 26th), the National Entrepreneurship Investment Guidance Fund (Guidance Fund) was officially launched, and three regional funds, namely the Beijing Tianjin Hebei Entrepreneurship Investment Guidance Fund, the Yangtze River Delta Entrepreneurship Investment Guidance Fund, and the Guangdong Hong Kong Macao Greater Bay Area Entrepreneurship Investment Guidance Fund, were established and put into operation.

At a special press conference, Bai Jingyu, Director of the Innovation and High tech Development Department of the National Development and Reform Commission, introduced that guiding the fund to establish a groundbreaking three-tier structure of "fund company regional fund sub fund" has effectively leveraged the leverage effect of central funds, gradually attracting social capital and achieving a trillion yuan market "blood making". Since the announcement of the establishment of the guidance fund at the beginning of the year, the venture capital market has accelerated its recovery. In the first three quarters, the fundraising amount increased by 8% year-on-year, the investment amount increased by 9%, and the total number of investment cases increased by nearly 20%. This fully proves the important role of guidance funds in boosting market confidence and stimulating market vitality.

In the investment process, the National Development and Reform Commission adheres to the "four investment" orientation of investing early, investing small, investing long-term, and investing in hard technology, guiding and driving the development of the venture capital market. In response to the current phenomenon of "hot tracks rushing forward, picky and impatient" in the venture capital market, guiding funds to adhere to "early investment", focusing on seed stage and start-up enterprises as the main investment targets, and investing in such enterprises will not be less than 70% of the total fund size. The second is to adhere to the principle of "investing in small businesses", requiring the other party's valuation to be below 500 million yuan, and the fund's single investment should not exceed 50 million yuan, ensuring that funds directly reach the "front-end" and "back-end" of various industries. The third is to adhere to the principle of "investing in the long term" and guide funds to set a 20-year term, breaking the traditional 7-10 year life cycle limit of venture capital funds. For fields with long return cycles such as innovative drugs, the investment cycle limit will be further relaxed, truly achieving "long termism". The fourth is to adhere to the principle of "investing in hard technology", focusing on strategic emerging industries and future industries specified in the "Proposal" of the 15th Five Year Plan, supporting a number of key common technology achievement transformation projects, and investing in a number of enterprises that undertake national tasks and achieve significant breakthroughs.

Bai Jingyu pointed out that at the launch ceremony of the guidance fund, three regional funds reached a batch of investment intentions, covering key areas such as integrated circuits, quantum technology, biomedicine, brain computer interfaces, aerospace, etc., reflecting the determination and strength of the guidance fund to support "hard technology".

In terms of management, the National Development and Reform Commission takes into account both "flexible" and "well managed" approaches, promoting and guiding the stable operation of funds. In response to the low survival rate of seed and start-up projects, establish an assessment system that conforms to the laws of the venture capital market, focusing on overall benefits and post investment empowerment, and not judging heroes based on the success or failure of individual projects. In response to the high risk characteristics of early projects, a management model of "online monitoring network+offline observers" is established to achieve early identification, early warning, early detection, and early disposal of risks through integrated and penetrating compliance supervision.

In the exit process, establish and improve a diversified exit system to ensure that funds are guided to "invest and receive returns". In response to the problems of relatively single exit channels and excessive reliance on IPO listings in the venture capital market, we will guide funds to strengthen communication and cooperation with private equity secondary market funds, regional equity markets, etc., and strive to enrich and broaden exit channels to ensure fund security.

Guo Fangming, Director of the Department of Economic Construction of the Ministry of Finance, mentioned that according to the plan approved by the State Council, the national venture capital guidance fund uses ultra long term special treasury bond funds to make contributions, with 100 billion yuan from the financial sector at the national level, and social capital participation is highly encouraged at the regional fund and sub fund levels.

Huo Fupeng, Director of the Innovation Driven Development Center of the National Development and Reform Commission and Chairman of the National Venture Capital Guidance Fund Co., Ltd., stated that the guidance fund fully leverages policy guidance, adheres to market-oriented operation, and follows the concept of "central coordination, local linkage, and social participation" to establish a three-tier structure.

At the level of guiding funds, the first layer adopts a corporate operation model and establishes the "National Venture Capital Guidance Fund Co., Ltd." to implement policy objectives, fulfill main responsibilities, and have a duration of 20 years. Just now, Director Bai Jingyu also mentioned that guiding funds should adhere to early stage funds, patient funds, market-oriented funds, and benchmark funds. We will integrate these concepts into daily operation management and assessment supervision, and continue to build a venture capital ecosystem suitable for the growth of start-up enterprises.

On the second level, at the regional fund level, guide fund companies to establish limited partnership enterprises through equity participation, and initiate the establishment of the first batch of three regional funds in the Beijing Tianjin Hebei, Yangtze River Delta, and Guangdong Hong Kong Macao Greater Bay Area, which are densely populated with scientific and educational talent resources, active in innovation and entrepreneurship, and have strong leading and driving effects. Regional funds adopt the "sub fund+direct investment project" approach for investment, with sub fund investment accounting for no less than 80%, and direct investment emphasizing coordination with national key project implementation. Guide fund companies to select regional fund management institutions based on their strengths, build professional and stable management teams, establish market-oriented incentive and restraint mechanisms, and set benchmarks and demonstrations for the high-quality development of the venture capital industry.

On the third level, at the sub fund level, regional funds do not act as the largest investor or shareholder in the sub fund, reflecting more national policy guidance. The sub fund operates in a market-oriented manner and invests no less than 70% of its fund size in seed stage and start-up stage enterprises. The average size of the sub fund will not exceed 1 billion yuan, and the relevant requirements for early and small investment will be effectively implemented to accompany the entrepreneurial growth of technology-based enterprises along the way.