In order to guide the management and operation of the fund, local governments generally set up a guiding fund management committee (or investment decision-making committee) as the highest investment decision-making body of the fund to exercise the responsibility of guiding fund decision-making and management. CMC generally does not directly participate in guiding the daily operation of funds. The CMC is mainly composed of local governments and the heads of relevant functional departments. For example, the director of the Shenzhen Venture Capital Guidance Fund Management Committee is the deputy mayor in charge of scientific and technological work, and the Municipal Development and Reform Commission, the Economic and Information Commission, the Science and Technology Innovation Commission, the Finance Commission and the Qianhai Administration are members. There are differences in the membership and work distribution of the guiding fund management committees in different places, so the focus of their rights is also different. National Development and Reform Commission, Economic and Information Commission, Science and Technology Innovation Commission, Finance Commission, Qianhai Administration and other functional departments will play different roles in different guiding funds and have an impact on the investment decision-making and management mode of guiding funds. But overall, the management of the guiding fund is mainly attributed to the National Development and Reform Commission and the Ministry of Science and Technology. The former is mainly aimed at promoting the development of local venture capital industry, while the latter is mainly devoted to promoting the financing of small and medium-sized scientific and technological enterprises. For daily management and investment operation, there are also great differences in the management mode of guiding funds in different places: some will set up a new guiding fund management institution, or set up a company system to manage it by themselves, while others will entrust relevant institutions or external institutions to manage it. The Future Industry Research Center of Zhongjing believes that there are mainly the following management methods of guiding funds: 1. Set up an independent legal entity as a fund management institution, such as Shenzhen Venture Capital Guidance Fund, and set up a special office of Shenzhen Venture Capital Guidance Fund Management Committee (Shenzhen Venture Capital) to be responsible for the daily management of the fund; The daily management and operation of the Nanjing Venture Capital Guidance Fund is also the responsibility of the specially established Nanjing Venture Capital Development Center. 2. Entrust local state-owned asset management companies or government investment platform companies to guide the management and operation of the fund. For example, the Shijingshan District Venture Capital Guidance Fund is managed by the Shijingshan District State-owned Assets Management Company, which is responsible for guiding the fund operation; Shijiazhuang Venture Capital Guidance Fund entrusts Shijiazhuang Development Investment Co., Ltd. to be responsible for the specific investment operation. 3. Entrust local state-owned venture capital enterprises to be responsible for guiding fund management and operation. For example, Suzhou Yuanhe Holding Group is the management organization of venture capital guiding fund in Suzhou Industrial Park, Shanghai venture capital guiding fund is managed by Shanghai venture capital Co., Ltd., and Guangzhou venture capital guiding fund is entrusted to Guangzhou Science and Technology Venture Capital Company. 4. Establish guiding fund management companies, or corporate guiding funds manage the former by themselves, such as Beijing Equity Investment Development Fund Management Co., Ltd. and Zhejiang Venture Capital Guiding Fund Management Co., Ltd. These companies are not investors of guiding funds, but only manage funds as trustees; The latter, such as Shanghai Pudong Science and Technology Investment Co., Ltd. and Chengdu Yin Ke Venture Capital Co., Ltd., are managed and operated by the company's internal team, and the internal governance is implemented with reference to the Company Law. 5. Entrust external professional management institutions to take charge of guiding fund management, such as Shanghai Yangpu District People's Government Guiding Fund entrusted by Silicon Valley Bank of the United States, Jinshan District and Minhang District Venture Capital Guiding Fund entrusted by Shi Sheng, Shaoxing Venture Capital Guiding Fund entrusted by Cailletet Fund, etc. In addition, the Anhui Venture Capital Guidance Fund established in 2009 and the Jingzhou Venture Capital Guidance Fund established in 20 12 both entrusted Pufa Ketou as their management institutions, which can also be regarded as typical representatives entrusted by professional institutions. In terms of fund management fees, guiding fund management institutions will generally get a fixed management fee of about 2%. Because most guiding funds are policy-oriented, mainly for the purpose of driving social capital to participate in venture capital, there is no profit requirement, so it is not common for management institutions to share performance. A few guiding foundations set up some incentive mechanisms to encourage funds to invest locally. For example, the Shenzhen Venture Capital Guidance Fund stipulates that 20% of the net income of the sub-fund investment will be awarded to the sub-fund management institution, and the remaining 80% will be distributed by each investor according to the proportion of capital contribution. In order to encourage the sub-fund to invest in local projects in Shenzhen, when the sub-fund is due for liquidation, the reward ratio of the guiding fund to the sub-fund management institution will be increased from 20% to 50% for the net income of the sub-fund from local start-up projects in Shenzhen; The net income of the sub-fund from the early and medium-term projects in Shenzhen will guide the fund to increase the reward ratio of the sub-fund management institution from 20% to 30%. In addition, some decision-making institutions that guide funds usually invite tenders or designate a domestic commercial bank as the fund custodian bank to be responsible for the daily work of fund custody, disbursement and settlement, and have certain supervisory responsibilities for fund operation; Most of the funds supervision and disbursement of the guiding fund are placed under the local finance bureau, and the fund accounts of the guiding fund management institutions only play the role of fund transfer, such as the Shenzhen Venture Capital Guiding Fund. In addition, some directors of guiding funds entrust third-party institutions to evaluate the performance of guiding funds, and in their daily operations, they will hire intermediaries to conduct due diligence and various audits on the venture capital institutions they participate in.