China sets up three huge venture capital funds to increase early investment in "hard technology"

China has officially established three venture capital funds focusing on "hard technology" fields to increase capital support for key technological innovations, and all relevant investment plans have been finalized. According to CCTV, the size of each fund exceeds 50 billion yuan, and the volume of a single fund is equivalent to more than 7.1 billion U.S. dollars. The size of the funds is quite eye-catching among similar market-oriented funds.

According to reports, these three funds will mainly invest in start-up and early-to-mid-stage companies, targeting target companies with a valuation of less than 500 million yuan, so as to enter the market at an earlier stage and leverage the transformation of scientific and technological achievements. The relevant person in charge said that the investment limit for a single project is capped at 50 million yuan, which is intended to cover a wider range of innovative enterprise groups through a "wide net and fine selection" approach, diversify project risks, and at the same time increase the penetration rate of capital into cutting-edge technology tracks.

In terms of investment direction, the fund focuses on a series of key areas defined as "hard technologies", including integrated circuits, quantum technology, biomedicine, brain-computer interfaces, aerospace and other technical directions that are regarded as core supports in the national industrial system. The report also mentioned that, correspondingly, "soft technology" refers more to areas such as Internet services that focus on business models and application innovation. This new fund is clearly biased towards high-barrier tracks such as underlying technologies and core devices.

Analysts pointed out that in the context of intensified international technology competition and deepening competition in the global industrial chain, such large-scale hard technology venture capital tools are expected to form linkages with existing industry guidance funds, local government funds, and market-oriented equity investment forces to further improve the capital support chain from basic research, achievement transformation to industrialization diffusion. The report also cited official data and pointed out that the establishment of this new round of funds is also regarded as an important capital market measure for China to promote high-quality development and accelerate the cultivation of new productive forces.