China set to launch a $6.5B venture capital fund in support of start-upsBy Justin Kahn
In support of emerging industries and start-up tech companies, the Chinese government is set to launch a 40 billion RMB (around $6.5 billion) venture capital fund. The money is coming from both the government and private investors alike. After years of decline, the program is said to have been sparked by new found investor interest in venture capital firms in the region.
As many have suggested, the government run VC project is part of the country's attempt to become much less reliant on property and other infrastructure asset investments. Based on a translated statement from the premier of China's state council, Le Keqiang, the motivation behind the fund is to support emerging and seed-stage companies in hopes to bolster overall economic growth.
"The establishment of the state venture capital investment guidance fund, with the focus to support fledging start-ups in emerging industries, is a significant step for the combination of technology and the market, innovations and manufacturing," the country's state council said. "It will also help breed and foster sunrise industries for the future and promote (China's) economy to evolve towards the medium and high ends."
Until just last year, venture companies in the region struggled significantly with funding due to an IPO freeze, but things have begun to recover over 2014. As of now, the Chinese government is yet to release a timetable for when things will be up and running, but reports suggest we could be talking about as soon as a few weeks.