What is a venture capital fund?
VentureCapitalFund refers to a fund run by a group of people with professional knowledge and experience in science, technology or finance, which specializes in investing in companies with development potential and rapid growth.
What does the venture capital parent fund mean?
Venture capital parent fund refers to the national venture capital parent fund set up by the government, which generally does not invest in specific projects, but participates in the initiation and operation of general commercial venture capital funds, so that commercial venture capital funds can obtain preferential funds and release risks.
What is the function of venture capital parent fund?
Different from traditional investment, venture capital focuses on strategic emerging industries such as biomedicine. In the strategic emerging industries, most enterprises are relatively small in scale and in the stage of rapid development, which is the period when the financing demand of enterprises is the strongest. Therefore, increasing social capital to participate in venture capital is helpful to the development of innovative enterprises, which is in line with the overall strategic plan of "double innovation" in China at present.
The establishment of local venture capital guidance fund will have a favorable impact on local governments and enterprises. As far as the government is concerned, the establishment of the guiding fund is helpful to guide the flow of funds to strategic emerging industries, which is conducive to the local realization of industrial structure transformation and the formation of an innovative economy with local characteristics; As far as enterprises are concerned, the establishment of government-guided funds is convenient for enterprises to raise funds, and also helps enterprises to carry out capital operations such as mergers and acquisitions.
The the State Council executive meeting also made it clear that state-owned enterprises with demand and conditions should be supported to set up or participate in venture capital enterprises and parent funds in a market-oriented manner according to laws and regulations, and state-owned venture capital enterprises with conditions should be supported to carry out pilot reform of mixed ownership.
On the one hand, the pilot reform of mixed ownership of state-owned venture capital enterprises can give full play to the advantages of social capital close to the market and start-ups, on the other hand, it can make the sources of funds of venture capital enterprises more diversified.