China to Launch a $6.5B Venture Capital Fund for Start-Ups
Ashley Allen / 3 years ago
The Chinese government is set to launch a 40 billion Yuen ($6.5 billion) venture capital fund to support emerging industries and start-up tech companies. The scheme is to be funded by the government and private investors.
“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,” said a statement from the country’s state council. “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.”
Due to an IPO freeze in the region, venture capital investments had dramatically fallen, but the announcement coincides with a recovery during the second half of 2014. Reports suggest the new venture capital fund could be operating within a matter of weeks.