The operation mode of government-guided fund;

1. Ways to guide funds to support venture capital

According to the characteristics of small and medium-sized enterprises in China and the actual situation of venture capital development, the fund is guided to support venture capital in four different ways:

The first type: staged equity participation, that is, guiding funds to participate in venture capital institutions and withdrawing within a certain period of time according to pre-agreed conditions. Mainly support the establishment of new venture capital institutions and expand the total investment in small and medium-sized science and technology enterprises.

The second type: follow the trend of investment. That is, guide funds and venture capital institutions to jointly invest in small and medium-sized enterprises in the initial stage. This way is mainly to support the established venture capital institutions and reduce their investment risks.

The third type: risk subsidy. That is to say, to give certain subsidies to venture capital companies that have invested in small and medium-sized enterprises in the initial stage, and to enhance the anti-risk ability of venture capital institutions.

The fourth type: investment guarantee. That is, venture capital institutions choose small and medium-sized enterprises with potential investment value but certain risks. At this time, these enterprises will be funded by the guiding fund in advance, and venture capital institutions will provide free entrepreneurial counseling to these enterprises; After the counseling, venture capital institutions will make equity investment in these enterprises and guide the fund to give secondary subsidies. This method mainly solves the puzzle that venture capitalists are afraid to invest because of risks, and is suitable for technology business incubators.

2. Guide the management mode of the fund.

Government guidance funds generally take the form of entrusted management, and guide funds to establish cooperative relations with preferred venture capital funds and their management institutions in the following ways:

(1) Establish contractual cooperation with professional venture capital funds as the main way to guide fund operation.

(2) As an investor in a professional venture capital fund. According to the application of domestic and foreign venture capital fund management institutions, guide the fund to invest with other domestic and foreign investors in a certain proportion, set up professional venture capital sub-funds with priority investment, and entrust professional management institutions with excellent performance to manage them.

3. Guide the level positioning of the fund.

Government guidance funds are divided into central, provincial, municipal and county levels. Government-guided funds at the central level, such as the Information Industry Fund planned by the Ministry of Industry and Information Technology and the China Youth Venture Capital Fund planned by the Central Committee of the Communist Youth League, are all regional funds.

4. Guide the dividend mechanism of the fund.

5, the legal basis of government guidance fund.

The development of private equity funds in China is relatively short, so the development of FOF in China has just begun. At present, government guidance fund is the main form of FOF. The main target of government-guided fund investment is local VC. It indirectly supports and incubates local high-tech enterprises through VC intervention, which is similar to the function of "incubator". By enlarging investment and guiding cooperative funds, we can finally achieve the goal of promoting local economic transformation and promoting the development of venture capital enterprises, which is obviously political, regional and oriented.