The National Social Security Fund, often known as the “patient capital” extremely anticipated within the enterprise capital circle, has arrived.
On October 31, the Jiangsu Social Security Science and Technology Innovation Fund with an preliminary scale of 50 billion yuan was formally signed in Nanjing.
The fund was collectively established by the National Council for Social Security Fund, the Jiangsu Provincial Government, the Suzhou Municipal Government, and ICBC Financial Asset Investment Co., Ltd. with an preliminary scale of 50 billion yuan. Suzhou Innovation Investment Group Co., Ltd. (hereinafter known as “Suzhou VC Group”) serves because the fund supervisor. The fund adopts a two – tier construction of “fund – of – funds + direct investment” and a joint administration mannequin, aiming to attain an natural mixture of useful resource integration and skilled operation.
A number of days earlier, on the afternoon of October 27, the Zhejiang Social Security Science and Technology Innovation Fund, additionally with a scale of 50 billion yuan, was signed in Hangzhou.
The Zhejiang Social Security Science and Technology Innovation Fund was collectively established by Zhejiang Province, the National Council for Social Security Fund, and the Agricultural Bank of China. Through market – oriented operation and skilled administration, the fund will leverage social capital to put money into key science and know-how innovation fields, which can strongly assist the development of an revolutionary Zhejiang, develop new productive forces in response to native circumstances, and speed up the development of a contemporary industrial system with Zhejiang traits.
The official launch of those two social safety science and know-how innovation funds via central – native cooperation within the Yangtze River Delta has attracted huge consideration within the science and know-how innovation and enterprise capital circles and introduced sturdy confidence to the complete innovation chain.
Two 50 – billion – yuan Social Security Science and Technology Innovation Funds
Let’s begin with the Jiangsu Social Security Science and Technology Innovation Fund.
The Jiangsu Social Security Science and Technology Innovation Fund was conceived in May this yr. After in – depth communication and full deliberation amongst all events, the National Council for Social Security Fund and Jiangsu Province deliberate to collectively set up the Jiangsu Social Security Science and Technology Innovation (Suzhou) Fund with an preliminary scale of 50 billion yuan.
Specifically, the National Council for Social Security Fund contributes 20 billion yuan, Jiangsu Province contributes 20 billion yuan (the related provincial entities contribute a complete of two.5 billion yuan, and the related Suzhou entities contribute a complete of 17.5 billion yuan), and the Industrial and Commercial Bank of China contributes 10 billion yuan, totaling 50 billion yuan.
The supervisor of the Jiangsu Social Security Science and Technology Innovation Fund is Suzhou VC Group. As the core enterprise capital platform below the Suzhou authorities, Suzhou VC Group has cumulatively managed funds with a scale of over 300 billion yuan and has persistently ranked among the many high in home authoritative lists for a few years.
Suzhou VC Group was established below the management of the Suzhou Municipal Finance Bureau and has eight subsidiaries, together with Guofa Venture Capital, Industrial Investment Group, Suzhou Science and Technology Innovation Investment, Suzhou Angel Fund – of – Funds, Suzhou Fund, Suzhou Institute of Industrial Technology, Suzhou Science and Technology Investment Promotion Center, and Suzhou Strategic Emerging Industry Fund. With a registered capital of as much as 18 billion yuan at the moment, it instantly entered the primary echelon of home enterprise capital. Currently, the funds cowl laborious – know-how fields equivalent to synthetic intelligence, biomedicine, semiconductors, clever car networking, and new power.
In current years, Suzhou VC Group has invested in a number of key initiatives and efficiently nurtured quite a few benchmark science and know-how innovation enterprises with core applied sciences, equivalent to Innoscience Technology, Zenlabs Energy, Ying En Biopharma, Borui Pharmaceutical, Lakala, and Mengguli, to go public on the capital market. The cumulative variety of immediately – invested listed enterprises has reached 64.
In phrases of direct funding enterprise, as of now, Suzhou VC Group has cumulatively managed 86 direct – funding funds with a administration scale of 81.541 billion yuan. It has made 427 direct – funding initiatives with a complete funding of seven.226 billion yuan. Among the 35 funds with an funding interval of greater than three years, 14 funds have a Multiple on Invested Capital (MOIC) larger than 2, and 13 funds have a Distributed to Paid – in Capital (DPI) larger than 1, displaying secure funding returns.
Currently, Suzhou VC Group has assembled an expert crew of practically 100 individuals overlaying funding, operation, threat management, and publish – funding administration to be absolutely accountable for the operation and administration of the social safety fund, guaranteeing environment friendly venture funding and controllable dangers.
The institution of this fund undoubtedly provides important energy to Suzhou, often known as a “major venture capital hub”.
Now let’s introduce the Zhejiang Social Security Science and Technology Innovation Fund.
In reality, the Zhejiang Social Security Science and Technology Innovation Fund can be the primary fairness funding fund in China collectively arrange by an area authorities, the nationwide social safety fund, and a monetary asset funding firm (AIC).
It is reported that the Zhejiang Social Security Science and Technology Innovation Fund that has been launched will arrange six particular funds, specifically: Zhejiang Province Strategic Emerging Industry Science and Technology Innovation Fund – of – Funds, Zhejiang Province Future Industry Science and Technology Innovation Fund – of – Funds, Zhejiang Province Science and Technology Innovation Special Merger and Acquisition Fund – of – Funds, Zhejiang Province Major Project Science and Technology Innovation Direct Investment Fund, Hangzhou Major Project Science and Technology Innovation Direct Investment Fund, and Ningbo Major Project Science and Technology Innovation Direct Investment Fund.
In the longer term, the Zhejiang Social Security Science and Technology Innovation Fund will intently comply with the main industrial insurance policies of the nation and Zhejiang, systematically construct a fund matrix overlaying the complete life cycle of science and know-how innovation enterprises, effectively hyperlink up diversified social capital equivalent to enterprise capital establishments, monetary establishments, and industrial capital, put money into and improve Zhejiang’s attribute and advantageous industries, domesticate and develop rising industries, and make ahead – trying layouts for future industries, offering lengthy – time period and affected person capital assist for nationwide growth and the development of an revolutionary Zhejiang.
Both funds goal on the excessive – factors of future know-how and industrial growth and adhere to the ideas of marketization, rule of regulation, and professionalism in funding and operation.
The Jiangsu Social Security Science and Technology Innovation Fund will give attention to the development of a contemporary industrial system in its investments, adhere to the instructions of intelligence, inexperienced growth, and integration, strengthen assist for main methods, key areas, and weak hyperlinks, and actively assist the transformation and upgrading of conventional industries with new applied sciences.
Specifically, the fund will give attention to strategic rising trade fields equivalent to synthetic intelligence, built-in circuits, organic manufacturing, new power, excessive – finish gear, and new supplies to assist construct a contemporary industrial system.
The Zhejiang Social Security Science and Technology Innovation Fund adheres to the precept of “meeting national needs, leveraging Zhejiang’s capabilities, and following future trends”, focuses on main nationwide strategic wants, goals on the excessive – factors of future laborious – know-how and industrial growth, and supplies lengthy – time period and affected person capital assist for the development of an “innovative Zhejiang”.
A New (*50*) for “Patient Capital”
Jiangsu and Zhejiang have been on the forefront of science and know-how innovation in recent times.
Take Suzhou for example. As an vital manufacturing base in China, Suzhou has an entire industrial system, main supporting capabilities, and sturdy innovation momentum. From January to August this yr, the town’s above – scale industrial output elevated by 4% yr – on – yr, and the output worth of excessive – tech industries accounted for 56.7% of the above – scale industrial output, demonstrating sturdy growth resilience and innovation vitality.
As of the tip of June 2025, there have been a complete of 1,203 non-public fund managers registered in Jiangsu. There had been 6,565 non-public fairness/enterprise capital funds registered in Jiangsu managed by non-public fund managers throughout the nation, with a fund scale (web belongings) of 1.67 trillion yuan. Suzhou additionally has the biggest variety of nationwide – degree science and know-how enterprise incubators in China, and the numbers of listed firms on the STAR Market, potential unicorn enterprises, and excessive – tech enterprises all rank among the many high within the nation.
Zhejiang, along with being a significant financial province, has additionally turn into a main gathering place for scientific and technological innovation in recent times.
With the emergence of the “Six Dragons of Hangzhou”, the event of hardcore know-how in Zhejiang is displaying accelerated evolution traits of “integration, clustering, and internationalization”. Especially in strategic instructions equivalent to robotics, aerospace data, and artificial biology, Zhejiang has made fast progress.
Patient capital represented by the social safety fund is the “long – distance runner” amongst varied forms of capital. It focuses on medium – and lengthy – time period funding and returns, options lengthy – time period imaginative and prescient, sturdy strategic dedication, the power to face up to cyclical fluctuations, and is conducive to selling innovation.
In January 2025, the General Office of the State Council issued the “Guiding Opinions on Promoting the High – Quality Development of Government – Investment Funds”, additional proposing to develop and develop lengthy – time period and affected person capital.
The institution of the multi – billion – yuan social safety science and know-how innovation funds in Jiangsu and Zhejiang is an correct implementation and revolutionary in – depth exploration of this coverage orientation on the native degree. The launch of the social safety funds isn’t solely important when it comes to the capital scale but in addition in establishing a benchmark for “patient capital”.
The entry of the social safety fund, with its extraordinarily lengthy funding cycle and secure funding idea, precisely matches the wants of laborious – know-how innovation. The launch of those two social safety science and know-how innovation funds within the Yangtze River Delta has injected nice confidence into the market. It may also assist Jiangsu and Zhejiang play a larger function within the “Yangtze River Delta competition” for constructing a science and know-how – highly effective nation.
A related individual in control of the National Council for Social Security Fund stated that within the subsequent step, the National Council for Social Security Fund will enhance the depth of business funding, assist the built-in growth of scientific and technological innovation and industrial innovation with more practical funding operations, extra environment friendly useful resource allocation, and higher – high quality capital provide, and perform funding and operation work in a standardized and orderly method.
This article is from the WeChat official account “LP Spectrum”, creator: Riemann. It is revealed by 36Kr with authorization.