China’s State Council Looks to Form $6.5 Billion State Venture Capital Fund
The government of China is looking to create a government venture capital fund which may be capitalized at 40 billion yuan (US$ 6.5 billion). China is trying to maintain its relatively high economic growth rate and migrate toward medium to higher areas of manufacturing and services. The venture capital fund would be funded by existing capital slated for expanding emerging sectors by state-owned enterprises (SOE). The fund would also let private investors the ability to participate.
China’s venture capital market is relatively small compared to markets in the United States and Europe. However, China boasts the most valuable startup in the world, Xiaomi, a smartphone company.
According to China’s State Council, in a statement, “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.”
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