Financial support for venture capital guiding fund guidance will be issued

Yesterday, the National Development and Reform Commission Financial Secretary Xu in the tenth session of the relevant Forum revealed, "Venture capital Guidance Fund http://www.aliyun.com/zixun/aggregation/6603.html" > directive opinion The final revision has been reported to the State Council, which is expected to be unveiled soon.

Xu pointed out that the "guidance" emphasizes that governments play a role in remedying market failures, rather than taking the place of market substitution, and that governments at all levels do not invest directly in start-ups, but rather through the establishment of venture capital guidance funds to guide the investment of commercial VC funds; Guide fund when selecting a Support object, Will choose to invest in start-up enterprises of the commercial venture capital fund, rather than the key investment IPO and other mature enterprises such as venture capital companies.

Financial support to create New deal

In the "China Venture capital development new impetus High-level Forum", Xu revealed that "guidance" by the National Development and Reform Commission and the Ministry of Finance jointly drafted, after three years of grinding, has reached a high level of consensus among the ten ministries, the final revision has been reported to the State Council, is expected to be published in the

Xu introduced, the main purpose of issuing "guidance opinion" is to innovate the way of financial fund to support the development of venture capital, to promote the establishment of the norm of establishing the pioneering investment guiding funds, to solve some important operational problems of guiding fund operation.

It is understood that over the past more than 20 years, China has a lot of use of financial funds to directly engage in entrepreneurial investment lessons, "guidance" will be reformed to the direct investment of financial funds to indirect investment, that is, all levels of government through the creation of policy-oriented venture capital guidance fund to indirectly support the development of commercial venture capital funds.

The National Development and Reform Commission has discussed with the Ministry of Finance that the state-owned venture capital Enterprise, which was established by the local government through the financial capital, is the enterprise organization operating according to the commercial principle, and it is more difficult to carry out their assets into the "public financial Assessment system", and there are many problems in Obviously, it is necessary for the policy venture capital Investment Guide fund not to be profitable to be included in the system, and it will be more effective and feasible.

Guide fund balances tilt to angel funds

Xu concludes that the first major feature of the directive opinion is to encourage but not to impose a venture capital guidance fund at all levels of government. Governments at all levels can, in combination with the characteristics and needs of local economic development, decide whether to set up a guide fund, when to set up, and to set up a large fund.

In addition, VC-led funds are based on the support of commercial venture capital, rather than fencing their own, to an entrepreneurial enterprise direct investment. The guidelines specifically set out normative provisions to ensure that this is implemented.

As a policy tool, the third characteristic of VC-led fund is to make up the market failure, but not to replace the market behavior. At present, many of the focus of commercial venture capital fund is not the start-up enterprises, but some mature enterprises, IPO enterprises, such enterprises have been to achieve a sound operation, and often funds flocked, and those start-up enterprises may be few people, but also need financial support.

Xu pointed out that this is a kind of market failure performance, therefore, the VC-led fund to support the target is committed to invest in early start-up Enterprise Development ventures.

"Investing in start-up companies is risky and money is likely to be wasted, so the government is helping to share the risk of such a commercial venture." "Xu that the guidance of the Government to the entrepreneurial enterprises to implement the support."