According to the requirements of the Guiding Opinions, the guiding fund should operate in accordance with the principle of "government guidance, market operation, scientific decision-making and risk prevention", and its support targets are mainly all kinds of venture capital enterprises established in China according to the procedures stipulated in the Interim Measures for the Administration of Venture Capital Enterprises. Guide the fund itself not to directly engage in venture capital business. According to the China Economics Future Industry Research Center, the main operating modes of China Guidance Fund are equity participation, follow-up investment, risk subsidy, financing guarantee and investment guarantee.

1, share in installments

Staged equity participation is the main operation mode of guiding fund, which refers to guiding fund to make equity investment in venture capital enterprises and withdraw within the agreed time limit, mainly supporting new venture capital enterprises.

In this mode, the guiding fund operates in the form of venture capital parent fund (FOFs), and cooperates with venture capital institutions to set up sub-funds, which are then invested in venture enterprises. In this process, the guiding fund does not participate in the daily management of the sub-fund, but only plays the role of capital contribution and shareholding. The subscription ratio of the guiding fund in the sub-fund generally does not exceed 25%, and it cannot become the largest shareholder. This mode of operation can guide private capital to invest in start-ups by initiating the establishment of venture capital funds, thus giving play to the leverage of government funds.

2. Subsequent investment

Follow-up investment means that venture capital institutions choose small and medium-sized technology enterprises in the initial stage and guide funds and venture capital institutions to invest together. Generally speaking, venture capital institutions can apply for follow-up investment after selecting investment projects or within one year of actually completing investment. Guide the fund to follow up the investment according to the proportion of less than 50% of the actual investment of venture capital institutions, and the investment of each project shall not exceed 3 million yuan. Guide the fund to follow up the equity formed by investment and entrust it to venture capital institutions with the same investment for management.

3. Risk subsidy

Risk subsidy refers to guiding funds to give certain subsidies to venture capital institutions that have invested in small and medium-sized science and technology enterprises in the initial stage. The Interim Measures for the Administration of Guiding Funds stipulates that guiding funds shall give risk subsidies according to 5% of the actual investment of venture capital institutions, and the maximum amount of subsidies shall not exceed 5 million yuan. Risk subsidy funds are mainly used to make up for the losses of venture capital.

4. Investment guarantee

Investment guarantee means that venture capital institutions will reward start-up small and medium-sized technology enterprises that are engaged in high-tech research and development and have investment potential as "counseling enterprises" through guiding funds. The Interim Measures for the Administration of Guiding Funds stipulates that guiding funds can provide pre-investment assistance to guiding enterprises, and the maximum amount of assistance shall not exceed 1 10,000 yuan. The aid funds are mainly used to subsidize the high-tech research and development expenses of "guiding enterprises".