The Zhongguancun Administrative Commission has launched China’s first fund for Angel Investment--the Zhongguancun Angel Fund of Funds--on Oct. 21, coinciding with the National Week of Mass Entrepreneurship and Innovation, the China Daily reported.
According to the commission, the fund will encourage Angel investment and help convert the Zhongguangcun science park into a national innovation center. It will also be used to provide comprehensive assistance to the country's startup businesses.
The report said that the fund has the total scale of 1 billion yuan ($157 million), of which the first phase is about to reach 300 million yuan ($47.19 million).
The fund is managed by the Zhongguancun Development Group, a corporation in the science park run by the Beijing government and major foundations and enterprises, the report added.
The fund was established by Zhongguancun Development Group and Tsinghua Holdings, which acted as sponsors. Beijing's Haidian District and the Zhongguancun Administrative Committee provided policy support for the fund.
Zhongguancun Development Group, a state-owned company, is engaged in three major areas, such as industrial investment, technological finance, and science park development. The company has invested in 69 Angel Investments and industrial funds, which has a total of 68 billion yuan ($10.7 billion).
About 16 science parks, including Zhongguancun Software Park and Zhongguancun Biological Science Park, are also managed by the company.
Aside from the Zhongguancun Development Group, the other supporters of the fund include Shengjingjiacheng Fund, the largest "fund of funds" in the country, which is expected to invest 5 billion yuan ($786.5 million) this year. The Qingqingchuang Technology Corporation, another major manager, is a "venture capital plus incubation" platform by Tsinghua Holdings.
According to the report, Zhongguancun Development Group will use its resource channels and capital capability to establish a solid foundation for the fund. The Shengjingjiacheng Fund will use its proficiencies in investment decisions, capital management, and adding value services, while the Qingqingchuang Technology Corporation will provide entrepreneurship services.
Angel Investment in China grew rapidly in the past decade and Angel Investors are gradually entering into more industries. To promote the growth of projects, the industry needs more mid- to long-term capital, the report said.
Leading Angel Investors such as the Zhen Fund are expected to support the new "Fund of Funds."