Interim measures for the management of venture capital investment Guidance Fund for small and medium-sized enterprises

The first is to implement the circular of the State Council on the implementation of the national medium and long term Science and technology development Plan (2006-2020 years), a number of supporting policies of the notice (Guo (2006)6), supporting the independent innovation of science and technology SMEs, according to the Office of the Ministry of Science and Technology forwarding, Notice of the Ministry of Finance on the interim provisions of the Technical Innovation Fund for small and medium sized enterprises (Kwok (1999)47), formulate these measures.

The second technology-oriented SME venture capital Investment Guidance Fund (hereinafter referred to as the Guiding fund) is specifically used to guide the venture capital investment in the start-up period of science and technology SMEs.

The source of funds for the Guidance Fund is the central Financial science and technology SME Technology Innovation Fund, the funds recovered from the funded venture capital institutions and donations from the society.

The article four guides the fund to operate according to the project Choice Marketization, the fund use public, the provision service specialization principle.

The guiding way of the Fund is to participate in the stage, follow the investment, risk subsidy and investment guarantee.

Sixth, the Ministry of Finance, the Ministry of Science and Technology to engage experts to guide the Fund Evaluation Committee, the Guidance Fund to support the evaluation of projects, commissioned by the Science and technology of small and medium-sized Technology Innovation Fund Management Center (hereinafter referred to as Innovation Fund Management Center) is responsible for guiding the day-to-day management of the Fund.

Chapter II Supporting Objects

Seventh guide the Fund to support the object: In the People's Republic of China to engage in venture capital venture Capital Enterprises, venture capital Management enterprises, with investment functions of small and medium enterprises (hereinafter referred to as venture capital institutions), and start-up technology-oriented SMEs.

Eighth a venture capital enterprise referred to in these measures means a company or limited partnership enterprise which has the function of financing and investment and is mainly engaged in venture capital activities. Venture capital enterprises that apply for guidance fund support shall have the following conditions:

(i) Registered with the administrative department for Industry and Commerce;

(b) The paid-in capital (or capital contribution) is more than 100 million yuan, or the initial contribution of the investor is more than 30 million yuan, and the commitment in the 5 years after the registration of the total amount of capital of more than 100 million yuan, all investors in the form of money;

(c) There is a clear investment area, and the investment in science and technology SMEs accumulated more than 50 million yuan;

(d) At least 3 full-time senior managers with more than 5 years of venture capital or related business experience;

(e) There are at least 3 successful cases of investment in technology-oriented SMEs, that is, the average annual yield of equity in investment is not less than 20%, or the transfer income of equity is higher than 20% of the original investment;

(vi) Management and operational norms, with strict and reasonable investment decision-making procedures and risk control mechanisms;

(vii) According to the State Enterprise finance and accounting system, there is a sound internal financial management system and accounting methods;

(eight) do not invest in liquidity securities, futures, real estate industry and national policy-restricting industries.

Nineth The venture Capital Management Enterprise referred to in these measures means a company or a limited partnership enterprise formed by a professional investment manager to provide investment management services for investors. Venture capital Management Enterprises which apply for the guidance Fund shall have the following conditions:

(i) in accordance with the conditions of article eighth (i), (iv), (v), (vi), (vii) of these measures;

(b) Paid-in Capital (or contribution) in the amount of 1 million yuan;

(c) The management of entrepreneurial capital of more than 50 million yuan.

Tenth an SME service institution with investment function referred to in these measures refers to the SME service institutions which mainly engage in the provision of entrepreneurial guidance, technical services and financing services for the start-up of Science and technology SMEs, and have the ability to invest. The SME service organizations that apply for the support of the Fund require the following conditions:

(i) in accordance with the conditions of article Eighth (v), (vi) and (vii) of these measures;

(b) having an enterprise or a legal person qualification;

(iii) At least 2 full-time managers with more than 3 years of venture capital or related business experience;

(d) No less than 50 of the start-up technology-oriented SMEs under guidance (with the signing of the service agreement);

(v) The ability to provide fixed operating venues to the start-up of Technology-based SMEs;

(vi) in the start-up period of small and medium-sized science and technology SMEs investment or entrusted management of investment accumulated in more than 5 million yuan.

11th This method refers to the start-up period of small and medium-sized science and technology SMEs, is mainly engaged in High-tech product research, development, production and services, the establishment of a period of 5 years within the unlisted company. The start-up science and technology SMEs supported by the Guidance Fund shall have the following conditions:

(a) Has the enterprise legal person qualification;

(b) The number of workers in the 300 people, with a college education and technical personnel accounted for more than 30% of the total number of workers, directly engaged in research and development of scientific and technological personnel accounted for more than 10% of the total number of workers;

(iii) Annual sales of 30 million yuan below the net assets of 20 million yuan under the RMB, each year for High-tech research and development of funds accounted for more than 5% of sales.

Chapter III participation in the stage

The 12th stage of equity participation is to guide the fund to venture capital investment enterprises, and in the agreed period of exit. The main support to initiate the establishment of new venture capital enterprises.

13th a venture capital institution which complies with the conditions stipulated in these measures shall initiate the establishment of a new venture capital Enterprise as a promoter, it may apply for stage participation.

The 14th Article Guide Fund's participation ratio highest does not exceed the VC enterprise Paid-in Capital (or the capital contribution amount) 25%, and cannot become the first big shareholder.

The 15th Article guides the fund to form the stock right, other shareholder or the investor may purchase at any time. The transfer price is the original investment of the guiding Fund after 3 years after the investment of the Guiding fund, and the transfer price is the sum of the income of the original investment of the Guiding fund and the base interest rate of the 1-year loan issued by the People's Bank of China in accordance with the transfer.

16th The venture capital Enterprise applying for the equity participation of the Fund shall clarify the following matters in the investor Agreement and the Enterprise Charter:

(a) In the case of an assignee, the guidance fund may withdraw at any time.

(b) The period of participation of the guiding Fund is generally not more than 5 years.

(c) During the period of guiding Fund equity participation, the total investment of the start-up technology SMEs is not less than twice times the amount of the capital contribution of the guiding Fund.

(iv) The Guide fund does not participate in day-to-day operation and management, but it has the right of supervision over the investment of small and medium sized SMEs in the start-up period. The Innovation Fund Management Center may organize the social intermediary organization to carry on the annual special audit to the venture capital enterprise. If the venture capital institution fails to invest in the start-up science and technology SMEs according to the agreement of investors and the Articles of Association, the Guide Fund shall have the right to withdraw.

(e) After liquidation of a participating venture capital enterprise, the creditor's rights are discharged in accordance with the legal procedure, and the remaining property first liquidate the guiding Fund.

Fourth chapter follow up investment

17th the follow-up investment refers to the start-up period of small and medium sized enterprises which invest in the investment of the venture capital institution, and directs the fund to invest together with the venture capital institution.

18th The venture capital investment institution can apply for follow-up investment after the investment project is selected or the investment is actually completed within 1 years.

19th Guide the Fund in accordance with the actual investment investment institutions below 50% of the proportion of follow-up investments, each project does not exceed 3 million yuan.

20th Guide the fund to follow up the investment formation of equity entrusted to the joint venture capital investment institutions Management.

The Innovation Fund Management Center shall sign the agreement on equity trusteeship with the venture capital institution which is jointly invested to define the rights, responsibilities, obligations, conditions or time of withdrawal of the equity.

21st Guide The fund to pay the management fee and the benefit reward according to 50% of the investment income to the venture capital institution, the remaining investment income is withdrawn by the Guide fund.

The 22nd is to guide the fund to form a stake in the general exit within 5 years. Equity withdrawal from the joint venture investment institution is responsible for implementation.

23rd a joint venture investment institution shall not withdraw its stake in the invested enterprise prior to directing the fund.

Fifth Chapter risk Subsidy

24th, the risk subsidy is to guide the fund to have invested in the start-up period of technology-based small and medium-sized enterprises to provide a certain subsidy to the venture capital institutions.

25th The venture capital institution may apply for a risk subsidy after the investment has been completed.

26th Guide The fund to the maximum of no more than the actual investment of the venture capital of 5% to give a risk subsidy, the maximum grant amount of not more than 5 million yuan.

27th The risk subsidy fund is used to make up the venture capital loss.

Sixth Chapter Investment Guarantee

The 28th investment Guarantee means that the venture capital institution will provide financial assistance to the "guidance enterprise" after it is established as "the Guidance enterprise" for the start-up technology enterprises with the potential of investing in High-tech.

The investment guarantee is carried out in two stages. After the signing of the investment intention book by the venture capital institution and the "Guidance Enterprise", the Fund is provided with a pre-investment subsidy to the "guidance enterprise", and after the venture capital institution completes its investment, the fund is funded after the "Guidance enterprise" is invested.

29th a venture capital institution may jointly propose an application for investment assistance with a "counseling enterprise".

30th a pre-investment fund is applied for, the venture capital institution shall sign the investment intention book with the "Counseling enterprise" and issue a "guidance commitment" to clarify the following matters:

(a) The main contents of the free entrepreneurship counselling provided by the venture capital institutions to the "counselling enterprises" after obtaining the funding of the Guidance Fund. The counselling period is usually 1 years, and the longest is not more than 2 years.

(b) The "Guidance enterprise" should meet the conditions for the investment of the venture capital institution during the guidance period.

(iii) The accountability of both the venture capital institution and the "counseling enterprise" for breach of contract.

31st in accordance with the provisions of article 30th of these measures, the Guidance Fund may give the "guidance enterprise" a pre-investment subsidy, the maximum amount of subsidy not exceeding 1 million yuan. The fund is mainly used to subsidize the cost of High-tech research and development of "counseling enterprises".

32nd after entrepreneurship counseling, venture capital investment institutions to implement investment, venture capital institutions and "guidance enterprises" can jointly apply for investment after funding. The guidance fund may, according to the situation, give the "guidance enterprise" a maximum of 2 million yuan investment after the subsidy. The fund is mainly used to subsidize the cost of the industrialization of High-tech products of "counseling enterprises".

33rd the start-up investment institutions and the "Guidance Enterprises" shall submit special reports on the reasons for not investing in the end of the guidance period. For those who do not perform as force majeure and fail to fulfill their obligations under the investment intention book and the guidance undertaking, the Innovation Fund Management Center shall recover the pre-investment funds in accordance with the law and publish the list of the venture capital institutions and the "counseling enterprises" in the relevant media.

Seventh chapter management and supervision

34th the Ministry of Finance and Science and technology shall perform the following duties:

(a) The establishment of Guidance fund project evaluation procedures;

(b) Employing relevant experts to form a steering fund assessment Committee;

(iii) To approve the projects to be supported according to the results of the Evaluation Committee of the Steering Fund;

(iv) guiding and supervising the daily management of the Fund by the Innovation Fund Management Center;

(v) Entrust a third party organization to evaluate the operation of the Guiding Fund and evaluate the performance of the venture capital institutions supported by the Guidance Fund.

35th Guide The Fund Assessment Committee to perform the following duties:

To conduct an open, fair and impartial review of the guiding Fund projects in accordance with the evaluation criteria and procedures.

36th Innovation Fund Management Center performs the following duties:

(a) The application for the Guidance Fund of the project to receive and first instance, to guide the Fund Evaluation Committee to submit the first instance opinion;

(b) Entrusted by the Ministry of Finance and Science and technology, as the representative of the Fund sponsor, manage the equity of the investment of the Fund, and carry out the equity withdrawal from the investment of the Guiding Fund;

(c) Supervise and inspect the implementation of the projects supported by the Fund, report to the Ministry of Finance and the Ministry of Science and Technology on a regular basis and advise on the results of the supervision and inspection.

37th the support items which are evaluated by the Evaluation Committee of the Fund, are publicized in the relevant media, and the publicity period is two weeks. The guidance fund does not support the project of discovering problems in publicity.

Eighth Chapter Annex

38th Guide The Fund project management method by the Ministry of Science and Technology with the Ministry of Finance separately.

39th The measures shall be explained by the Ministry of Finance in conjunction with the Ministry of Science and Technology.