China is creating a venture capital fund to finance startups

Reuters reports that China has announced that the government will create a venture capital fund to finance start-ups operating in advanced industries, estimated at $ 6.5 billion. The PRC State Council, in particular, stated in a statement: “The establishment of a state-owned venture capital fund, which will focus on advanced industries, will be an important step for the combination of market and technology, innovation and production. It will also help raise and nurture a modern industry and prepare it for the future, and further develop the economy [of China]. ”

The dates for organizing the fund were not announced, but judging from previous experience, it can be organized within a few weeks after the announcement of the statement on the official website of the government. So far, China's venture capital investment market is small - the legacy of a planned economy, in which private business is experiencing all sorts of restrictions, has an effect. However, two years ago, the government adopted a strategy according to which private business should play a decisive role in the country's economy. For example, last month, for the first time, insurance companies were allowed to engage in venture capital investments.

In our country, innovations according to plan should be concentrated in the Skolkovo project. This is an innovation development fund and at the same time a modern scientific and technological innovation complex under construction in Moscow for the development and commercialization of new technologies, the first science city in the post-Soviet era in Russia. There are five clusters in the fund that correspond to five areas for the development of innovative technologies: a cluster of biomedical technologies, a cluster of energy efficient technologies, a cluster of information and computer technologies, a cluster of space technologies and telecommunications and a cluster of nuclear technologies. Since 2012, the fund has been involved in financing various enterprises and issuing grants.