Some opinions on speeding up the development of venture capital

The Office of the People's Government of Jiangsu Province forwarding the circular of the Provincial Development and Reform Commission on speeding up the development of venture capital

(Su (2008)141) Each city, county people's government, provincial committees, offices, offices, bureaux, provincial units directly under:

Provincial Development and Reform Commission "on speeding up the development of venture capital," a number of views have been approved by the provincial people's government, now forwarded to you, please earnestly implement.

December 31, 2008

Some opinions on speeding up the development of venture capital

(Provincial Development and Reform Commission December 2008)

In order to quicken the construction of the venture capital system with Jiangsu characteristics, we should strengthen the independent innovation ability of our province, further promote the economic restructuring and industrial upgrading, and improve the comprehensive competitiveness of the whole province, according to the National Plan for Medium and long term Science and technology Development (2006-2020) (Guo (2006)6), Interim measures for the administration of venture capital enterprises (National Development and Reform Commission 39th) and provincial party committee and Provincial government, "on speeding up the reform and development of the financial industry," (Su-(2007)3) and other regulations and document spirit, now on speeding up the development of our province venture capital to make the following comments:

First, fully understand the important significance of speeding up the development of venture capital (i) venture capital is to point to the high growth potential of unlisted enterprises, especially small and medium-sized innovative enterprises for equity investment, and to provide entrepreneurial management services, It is hoped that the investment enterprise can acquire the capital increment income through the transfer of equity after mature or relative maturity.

(b) Speeding up the development of venture capital is a key measure to improve the capability of independent innovation, an effective way to expand the scale of direct financing and a booster to promote the development of SMEs. As a new industry, venture capital belongs to a kind of high-end service sector, is an important engine to speed up the transformation of economic development mode, it is an important means to alleviate the difficulty of business start-up, financing and development, and is the supplement and perfection of the existing financial system. Speeding up the development of venture capital is the objective need to keep our province taking the lead in developing and innovating in the whole country.

Second, clearly accelerate the development of entrepreneurial investment guiding ideology and target task (iii) guiding ideology: Guided by the scientific concept of development, to promote innovation and entrepreneurship, the construction of innovative provinces as the goal, to optimize the development of entrepreneurial investment environment, to establish a sound entrepreneurial investment system, to guide social capital participation in venture capital, to encourage the expansion of entrepreneurial investment in scale Make full use of venture capital to accelerate the transformation of economic development mode of promoting role.

(iv) Basic principles: First, Government guidance, market operation. We should give full play to the Government's policy support and fund guiding function, innovate the venture capital Management mode and perfect the operating mechanism of venture capital. The second is to integrate resources and promote together. We should strengthen exchanges and cooperation among various departments and regions, realize resource sharing and promote the construction of venture capital system. The third is to regulate according to law and standardize development. Establish the regulatory system that conforms to the characteristics of venture capital, and do well the record management work of venture capital enterprises.

(v) Main objectives: through the joint efforts of the Government, enterprises and society, we strive to build Jiangsu into one of the largest, most dynamic and best provinces of venture capital, and form a pluralistic pattern of "government pioneering capitals as guide, social venture capital as main body, and overseas venture capital as supplement". To the end of "Eleven-Five", the provincial venture capital institutions reached 200, of which the counties, state-level development zones and the conditions of the provincial development Park has at least 1 venture capital investment institutions, the size of the registered venture investment to reach 30 billion yuan, to promote 1000 small and medium-sized innovative enterprises grow and develop.

Third, efforts to expand entrepreneurial investment Scale (VI) to broaden the source of venture capital sources. Encourage domestic and foreign enterprises, social groups and natural persons to set up venture capital enterprises in our province, encourage domestic and foreign venture capital enterprises to set up branches in our province, and vigorously attract domestic and foreign equity investment funds, venture capital funds, social security funds, securities companies, insurers, Investment institutions such as trust companies invest in our province in accordance with the law to carry out venture investment business, to support a certain scale of venture capital enterprises to carry out financing innovation, through the issuance of corporate bonds and other ways to enhance investment and financing capacity, and strive to form a diversified source of venture capital sources.

(vii) Standardize the establishment of venture capital enterprises. A venture capital institution may adopt a limited liability company, a stock company, a partnership system and other organizational forms established by law. Domestic funds in our province to apply for the establishment of venture capital enterprises and venture capital management companies, according to law to the Industrial and Commercial Administration Department registration. Foreign investment establishment of venture capital institutions, in accordance with the "Foreign investment venture capital Enterprise Management Provisions" (Ministry of Commerce and other five departments to the 2nd 2003) for registration.

(eight) vigorously develop venture capital management institutions. Encourage and support venture capital management institutions to establish and improve internal incentive mechanism and risk restraint mechanism, accelerate the professional pace of venture capital management, improve the level of venture capital Management organization and management team. In Jiangsu Province to cultivate a group with strong management capacity, fund-raising capacity and better performance of the venture capital professional management agencies, to do a good job in Jiangsu Venture capital Management Agency brand.

(ix) To expedite the development of quality venture capital projects. Make full use of the favorable conditions of universities and scientific research institutions in our province, encourage the formation of scientific research and production consortia, carry out project cooperation and provide rich project sources for venture capital. Around the High-tech industry Development Park, Science and technology business park, characteristics of industrial parks, services, such as agglomeration areas, to foster a number of innovative entrepreneurial enterprises. For venture capital enterprises to participate in investment in the high growth of small and medium-sized science and technology enterprises to undertake the science and technology projects, the provincial departments should be priority to be included in our province of various projects to support. Encourage all kinds of venture capital investment institutions to invest in small and medium-sized service enterprises with good prospects for development, more employment and new technology.

Iv. increase the policy support to venture capital (10) Set up policy-induced venture capital investment Guidance Fund. According to the State Council forwarding Development and Reform Committee and other departments "on the establishment and operation of venture capital Guidance Fund Guidelines" notice (Kwok hair (2008)116) spirit, the establishment of provincial policy venture capital Investment Guide Fund, The relevant departments of the people's Government at or above the municipal level may set up guidance funds according to the needs of the development of venture capital and financial situation. Through equity participation, providing financing guarantee, follow-up investment or other ways to support the establishment and development of venture capital enterprises, to exert the lever amplification effect of government funds, to attract the first-class entrepreneurial management team, to promote more social capital to the government to encourage projects and conform to the national industrial policy areas. The provincial policy venture capital guiding fund management method is proposed by the financial Department and the relevant departments responsible for promoting the development of venture capital.

(11) Increase the tax support for venture capital. In accordance with the Ministry of Finance, the State administration of taxation on the promotion of the development of venture capital enterprises related to the tax policy notice (tax (2007)31) stipulated by the venture capital enterprises, the use of equity investment in unlisted medium and small High-tech enterprises for more than 2 years (including 2 years), according to their investment in small and % to deduct the taxable income of the venture capital enterprise. If the year is insufficient, the deduction can be carried forward in the later tax year. Registered in our province in line with the state promulgated the "High-tech Enterprise management Measures," the conditions of the venture capital institutions, can be identified as High-tech enterprises, according to the relevant provisions to enjoy High-tech enterprises tax concessions. The business income and other income of venture capital enterprises and venture capital Management Enterprises established in the form of limited partnership shall be paid by the partners respectively, and the preferential tax policies will be given support. Specific measures are formulated separately.

(12) Establishing risk compensation mechanism for venture capital investment. All levels of government may set up venture capital risk compensation funds for venture capital enterprises to invest in the seed period, the start-up period of the project, in the event of the full loss or liquidation of the investment enterprise, after the determination of the venture capital enterprises to pay a certain proportion of investment to compensate. A venture capital enterprise that has reached more than 50 million yuan in real income and invests in science and technology start-up projects, is granted a risk subsidy by 3% of the actual investment, and the maximum amount of subsidy is no more than 3 million yuan. The registered venture capital enterprises are allowed to extract the risk compensation according to the proportion of 1% of the actual investment, so as to improve the risk-resisting ability of VC enterprises. The venture capital business of other provinces in our province can enjoy this policy.

(13) Set up incentive mechanism for venture capital Management team. Venture capital institutions are encouraged to allow the participation of production factors such as capitals, technology and management to participate in the distribution of income, and encourage different types of venture capital institutions to adopt a variety of income distribution methods such as stock, option and reward. The senior management talents of the venture capital institutions can enjoy the relevant incentive policies of the provincial high level innovation talents and the preferential policies for the senior financial talents in each city and county. To cultivate and introduce senior venture investment talents into our province six talents Peak action plan, and enjoy the relevant preferential policies.

V. Improve the management and service system of venture capital (14) strengthen the organization and leadership of venture capital. The establishment of Provincial venture capital Work Department Joint Meeting system, led by the provincial Development and Reform Commission, provincial finance, taxation, science and technology, industry and commerce, finance office, SASAC and other relevant departments to participate in research and coordination of the major problems in the venture investment work. Provincial departments and units should be combined with their own functions, close cooperation, to speed up the formulation and improvement of our province to promote the development of venture capital supporting policies.

(15) Create a good environment for the development of venture capital. Governments at all levels should strengthen services, seriously cultivate venture capital projects, and actively launch venture investment project promotion activities. Major investment activities and projects docking activities of provinces and cities should invite venture capital enterprises to participate, and actively assist in solving the difficulties encountered by venture capital enterprises in promoting listing, mergers and acquisitions and enterprise development. We should increase the publicity of venture capital and strive to create a favorable environment for the development of venture capital.

(16) Completes the record management work of the venture capital enterprise. Venture capital enterprises in the administration of industry and Commerce after registration, the real income to reach 30 million yuan, or the first period of Paid-in capital reached 10 million yuan, and the company's commitment to all investors within 5 years after the registration of not less than 30 million yuan Paid-in capital, can apply for the record according to relevant regulations. After the record and meet the conditions of the venture capital enterprises can enjoy the state and our province-related support policies, at the same time accept the record Management department supervision. The provincial development and Reform Commission is responsible for the record management, annual inspection and supervision of the venture capital enterprises in our province.

(17) Perfecting the exit mechanism of venture capital. Venture capital Enterprises can realize investment withdrawal through the transfer of equity listing, the transfer of equity agreement and the management repurchase. To encourage financial institutions, listed companies, equity investment funds or other investment companies to participate in the acquisition and activities of start-up enterprises according to law. We should speed up the construction of a unified regional property right exchange market, promote the transfer of shares of unlisted companies, smooth the flow of elements among provinces, and provide a broader channel for mergers and acquisitions, equity transactions and venture capital withdrawal.

(18) Strengthen the cooperation of venture capital industry. Give full play to the role of the provincial Venture Capital Association, strengthen industry cooperation, and gradually form the industry self-discipline mechanism of venture capital investment, and promote the healthy development of venture capital industry in our province. The city and county that have the condition should set up the venture Capital association.

(19) Perfect intermediary service system. Establishing a comprehensive service platform for venture capital, realizing information interaction between venture capital enterprises and start-up enterprises, alleviating the difficulty of finding projects for venture capital enterprises and financing difficulties of SMEs. To encourage intermediary service agencies to engage in venture capital related business, to support intermediary service agencies to provide technical information, market forecasts, project evaluation and other services, and gradually establish the social service system needed for venture capital.

(20) Strengthen the construction of talent team of venture capital. We should strengthen the cooperation and exchange between venture capitalists and overseas experienced venture capital experts, and increase the cultivation, introduction and use of venture capital talents. To be familiar with capital operation, with industry background, proficient in modern management to invest in our province venture capital industry talent to give appropriate incentives and tax concessions. We should strengthen the training of talents by offering professional courses of venture capital and cooperating with well-known foreign universities and colleges in our province.

Publishing Department: Jiangsu Provincial Government Release date: December 31, 2008 implementation Date: December 31, 2008 (local regulations)