Jiema LP of the funding neighborhood realized that lately, the Guoxin Venture Capital Fund (Hangzhou) Partnership (Limited Partnership), with a scale of 10 billion yuan and led by China Reform Holdings Corporation Limited, was formally established in Hangzhou. The fund has a time period of 15 years and primarily invests in seed – stage, startup – stage, and progress – stage expertise innovation enterprises with robust technological capabilities.
The institution of the fund in Hangzhou is one other instance of the continual deepening of cooperation between central enterprises and native governments by China Reform Holdings Corporation Limited and Hangzhou.
15 – yr time period, Guoxin joins arms with Hangzhou, 10 billion yuan
Back in early December 2024, the State – owned Assets Supervision and Administration Commission of the State Council and the National Development and Reform Commission collectively issued insurance policies. It was identified that efforts ought to be made to advertise the excessive – high quality growth of central enterprise enterprise capital funds, assist central enterprises in initiating the institution of enterprise capital funds, and concentrate on early – stage, small – scale, lengthy – time period investments in laborious expertise.
Soon, the Guoxin Venture Capital Fund was publicly unveiled and introduced its signing to be established in Hangzhou.
In January 2025, the fund took a substantial step in its operation. The signing ceremony for the cooperation between the Guoxin Venture Capital Mother Fund and the meant sub – funds was held in Beijing.
“The Guoxin Venture Capital Fund should play the role of long – term capital, patient capital, and strategic capital through market – oriented investment methods, focus on technological attributes, technological value, and emerging fields, and quickly invest in and layout a number of high – quality early – stage hard – technology projects,” stated Xu Siwei, the chairman of China Reform Holdings Corporation Limited at the moment.
Specifically, the preliminary scale of the Guoxin Venture Capital Fund is 10 billion yuan, with a time period of 15 years. The variety of exterior initiatives of central enterprises invested in ought to account for a minimum of 50%, and the funding scale ought to account for a minimum of 30%. The funding fields primarily cowl built-in circuits, synthetic intelligence, biotechnology, future data, future manufacturing, and future well being.
This is undoubtedly a vivid instance of the multi – dimensional collaboration of “central enterprise capital + industrial leaders + local resources”: Five central enterprises, specifically China Minmetals, China Iron & Steel Research Institute Group, China National Building Material Group, GRINM Group, and China Electric Equipment Group, in addition to two native state – owned belongings, Hangzhou Capital and Xingxiang Group, collectively type the co – initiators of the Guoxin Venture Capital Fund.
As the main celebration, China Reform Holdings Corporation Limited was established in December 2010 and is 100% instantly held by the State – owned Assets Supervision and Administration Commission of the State Council. It emerged in the method of deepening the reform of state – owned belongings and state – owned enterprises and was designated as a pilot state – owned capital operation firm. As of the tip of 2024, China Reform Holdings Corporation Limited had whole belongings of 980 billion yuan and established and operated funds together with the Guoxin Guotong Fund, the Central Enterprise Operation Fund, the Science and Technology Innovation Fund, the Double – Hundred Fund, and the State – owned Enterprise Reform Science and Technology Fund.
It is value mentioning that earlier than the institution of the Guoxin Venture Capital Fund, China Reform Holdings Corporation Limited had “come” to Hangzhou many occasions. As early as September 2016, Guoxin Guokong Investment Co., Ltd. was formally established in Hangzhou. In November of the identical yr, Guoxin Guotong (Zhejiang) Investment Fund Partnership (Limited Partnership) additionally settled in Hangzhou. Subsequently, in August 2017, China Reform Holdings Corporation Limited took a stake in Zhejiang Manufacturing Investment Management Co., Ltd. In July 2019, the State – owned Enterprise Reform Double – Hundred Development Fund Partnership (Limited Partnership) was established in Hangzhou.
Flocking to Hangzhou
It is sort of exceptional that many nationwide – degree funds have come to the fertile floor of Hangzhou.
People nonetheless do not forget that on the finish of 2024, the second – section of the Service Trade Fund, the primary nationwide – degree mom fund in the sphere of overseas commerce economic system, was established with a whole scale of 10 billion yuan and settled in Xiaoshan District, Hangzhou, to assist the cultivation of recent enterprise varieties and fashions in overseas commerce, together with service commerce enterprises in fields equivalent to well being expertise, cross – border e – commerce, cross – border logistics, abroad warehouses, and the digital economic system.
The National SME Development Fund has additionally arrived. In June 2024, the fund accomplished the institution of its sixth batch of sub – funds. Hangzhou – primarily based funding establishments, Puhua Capital and Yuanjing Capital, managed Puhua SME Phase II (Hangzhou) Venture Capital Partnership (Limited Partnership) and Hangzhou Yuanjing New – begin SME Venture Capital Partnership (Limited Partnership), which efficiently signed contracts to obtain investments and have been subsequently registered and established in Hangzhou.
Recently, we’ve seen the frequent presence of central and native state – owned enterprises in Hangzhou.
NCSC (Zhejiang) Science and Technology Innovation Co., Ltd. was established in Hangzhou in June this yr with a registered capital of 500 million yuan. It was collectively funded by NCSC (Beijing) Science and Technology Innovation Co., Ltd. and Hangzhou Science and Technology Innovation Group Co., Ltd., specializing in science and expertise providers and the forefront of the brand new vitality discipline. Through this cooperation, China National Nuclear Corporation will leverage the scientific and technological innovation atmosphere in Hangzhou to unleash the potential of nuclear expertise purposes and promote regional industrial upgrading.
This month, China United Network Communications Group Co., Ltd. subscribed to a capital contribution of 1.859 billion yuan and took a 20.26% stake in Hangzhou Zhixun Investment Co., Ltd., which is managed by the Hangzhou State – owned Assets Supervision and Administration Commission, specializing in tapping the potential of Hangzhou’s synthetic intelligence enterprises. Almost on the identical time, Hainan Holdings, a complete state – owned funding and financing enterprise in Hainan Province, accomplished the switch of management rights of Hangzhou Wangying Technology Co., Ltd.
Going again a bit additional, in October 2024, the monetary asset funding firms (AICs) of the 5 main banks, specifically the Industrial and Commercial Bank of China, the Agricultural Bank of China, the Bank of China, the China Construction Bank, and the Bank of Communications, signed cooperation agreements with the corresponding metropolis – and district – degree state – owned enterprises in Hangzhou. The meant scale of the funds to be established reached 90 billion yuan, making Hangzhou the primary metropolis in the nation to realize full cooperation with the 5 main AICs.
The cause for “flocking to Hangzhou” is simple to know – Hangzhou has industrial labels such because the “Six Dragons of Hangzhou”, 3A video games, biomedicine, e – commerce brief dramas, biomedicine, and semiconductors, in addition to a first – class enterprise atmosphere and a extra full industrial – funding – financing ecosystem.
For instance, this yr, the Hangzhou authorities particularly allotted 15% of its industrial coverage funds to extend assist for future industries equivalent to normal synthetic intelligence and humanoid robots to domesticate extra modern enterprises like DeepSeek and Unitree Robotics.
The newest occasion was final month when Hangzhou launched a “five – in – one” service platform for science and expertise innovation enterprises and established Hangzhou Market – Scenario Innovation Center Co., Ltd., aiming to supply differentiated and relay – fashion providers for science and expertise innovation enterprises at totally different growth phases.
Hangzhou’s dedication to draw entrepreneurs is clear.
This article is from the WeChat official account “Jiema LP”, creator: Feng Yuchen. Republished by 36Kr with permission.