Xi'an High-tech Venture Capital won the first batch of fund of 100 million yuan (VC332)

News on December 13th, recently, Xi'an High-tech Industrial Venture Investment Co., Ltd. (hereinafter referred to as "Xi'an High-tech Venture Capital") was approved by the Ministry of Science and Technology Innovation Fund Management Center 2011 technology-based small and medium-sized enterprise venture capital guidance fund stage equity participation project 20 million Funded by the Yuan project. This is the first fund obtained by the Ministry of Science and Technology and the Ministry of Finance since the project was launched in 2007 in Shaanxi and Northwest China.

Obtaining this financial support means that Xi'an Hi-tech Venture Capital will invest and manage the technology-based SMEs in Shaanxi Province on behalf of the Ministry of Science and Technology and the Ministry of Finance.

According to a person from the Shaanxi Provincial Department of Science and Technology, the SME Venture Capital Guidance Fund will use special funds to guide venture capital institutions to invest in start-up technology SMEs. "Phase participation refers to guiding funds to make equity investments in venture capital enterprises and withdraw within the agreed period, mainly to support the establishment of new venture capital enterprises."

At present, after obtaining the funds, Xi'an High-tech Venture Capital has begun to select projects, "fund companies and management companies have been registered." Yang Rong, general manager of Xi'an High-tech Venture Capital.

100 million

The scale of the first batch of funds invested and managed by Xi'an High-tech Venture Capital is 100 million yuan, which will support about 15 projects.

Yang Rong, like a gyroscope, has been turning around from one project to another these days. "We have to look at the project and we have to meet some people every day."

According to Yang Rong, the size of the first batch of funds is 100 million yuan. "In addition to the 20 million from the Ministry of Science and Technology, we have jointly invested 80 million with another private investment company."

It is reported that the scale of the first batch of funds is 100 million. Xi'an Hi-tech Venture Capital invested 35 million yuan, and another private investment institution, Xi'an Zhixin Investment Management Company, contributed 45 million yuan. "The 20 million funds of the Ministry of Science and Technology will be In place, the fund companies and management companies have now completed registration. "

In fact, this is also the first batch of funds made by Xi'an High-tech Ventures.

"As a state-owned venture capital company, compared with some private venture capital companies, we are obviously inflexible in some mechanisms." Yang Rong said, "Therefore, we have been looking for breakthroughs. The form of the fund is our exploration . Next, we must explore the new situation including the New Third Board. "

The principle of "three transformations"

In the eyes of the outside world, technology-based venture capital guidance funds have broken through the traditional financial support methods of the past, highlighting the principles of marketization, publicization, and specialization. This is its biggest bright spot.

On July 6, 2007, the Ministry of Finance and the Ministry of Science and Technology formally issued the "Interim Measures for the Management of Technology-oriented SME Venture Capital Guidance Funds" (hereinafter referred to as the "Measures"), and the first national-level venture capital guidance fund was officially launched.

According to the provisions of the "Measures", the guidance fund supports the entrepreneurship and technological innovation of technology-based SMEs in the initial stage by guiding the venture investment behavior. Its support targets are venture capital companies engaged in venture capital, venture capital management companies, small and medium-sized enterprise service organizations with investment functions, and technology-based small and medium-sized enterprises in the initial stage.

Due to the strong professionalism of investment decision-making, the "Measures" focuses on the judgment standards of venture capital institutions, ensuring that the support is indeed capable, professional and mainly supports the development of China's high-tech industry Direction of venture capital institutions.

Venture investment companies applying for guidance fund support should have paid-in capital (or capital contribution) of more than RMB 100 million, or the investor ’s initial capital contribution of more than RMB 30 million, and promise to reach a total investment of 5 years after registration Over RMB 100 million, all investors contribute in the form of currency.

At the same time, it has put forward clear indicators for venture capital enterprises: there must be a clear investment field and a total investment of more than 50 million yuan for technology-based SMEs; at least 3 full-time senior management with more than 5 years of venture capital or related business experience Personnel; there are at least three successful cases of investment in technology-based SMEs, that is, the average annual return of equity formed by the investment is not less than 20%, or the equity transfer income is higher than the original investment by more than 20%; and must not invest in liquidity Securities, futures, real estate, and industries restricted by national policies. The equity formed by the guidance fund investment can be purchased by other shareholders or investors at any time. For purchases within 3 years after the introduction of the guidance fund, the transfer price is the original investment amount of the guidance fund; for more than 3 years, the transfer price is the original investment amount of the guidance fund and the profit calculated at the benchmark 1-year loan interest rate announced by the People's Bank of China at the time of transfer Sum.

From the outside world's perspective, the biggest highlight of the technology-based venture capital guidance fund is that it breaks through the traditional financial support methods in the past and highlights the principles of marketization, publicization, and specialization.

According to a person from the Science and Technology Department, its market-oriented principles are mainly reflected in two aspects. First of all, the guidance fund invests in equity, and it only occupies a relatively small proportion (up to no more than 25%) in venture capital, cannot be the largest shareholder, and does not participate in the daily management of venture capital institutions. "This not only guarantees the guiding role, but also avoids the administrative interference with the venture capital institutions with which the shares are invested."

Secondly, the guidance fund does not directly select projects when selecting support objects, but publicly selects venture capital institutions by setting objective conditions. As for the specific investment projects of these institutions after receiving support from the guidance fund, they will make their own judgments and decisions from the perspective of investors. The guidance fund does not intervene, so that the government departments can break through the "project selection" problem.

"The principle of publicization of the guidance fund is mainly reflected in the use of the guidance fund for social funds." The above-mentioned people from the Science and Technology Department revealed that the guidance fund does not aim to make profits, by giving part of the investment income to investors or providing subsidies for investors. Way to attract social funds to invest in SMEs at the start-up period. "This can not only make more business profits, but more importantly, it can make the radiation of financial funds wider, so that the financing environment for SMEs can be improved overall."

According to data from the Ministry of Science and Technology, the 55 million yuan guidance fund obtained by Jiangsu Gaotou Group in 2009 has now started the repurchase process first in the country. Moreover, its capital amplification ratio has reached 13 times, and has invested 700 million yuan in 15 technology-based SMEs, one of which has successfully landed on the GEM.

Support objects mostly come from high-tech zones

It is reported that the main criteria for Xi'an high-tech venture selection projects are companies in the initial stage, high-tech and high-growth, and 80% of the supported objects will come from Xi'an High-tech Zone.

In order to ensure the standardized operation of the guidance fund, the Measures stipulate that the venture capital institutions to be supported shall be publicized on the official websites of the Ministry of Finance and the Ministry of Science and Technology and relevant media. The public support will be provided without objection. The Ministry of Finance and the Ministry of Science and Technology will Entrust a third-party organization to evaluate the performance of the entire operation of the guidance fund.

A person from the Shaanxi Provincial Department of Science and Technology said that Xi'an High-tech Venture Capital has received the Science and Technology SME Venture Capital Guidance Fund from the Ministry of Science and Technology, which will create technological and financial cooperation conditions for Shaanxi Province to cultivate and develop SMEs in the next step. As the first investment company in Shaanxi to obtain venture funds from the Ministry of Science and Technology and the Ministry of Finance, Xi'an High-tech Venture Capital has accumulated experience for other venture capital institutions in Shaanxi Province to obtain equity participation in the Ministry of Science and Technology and the Ministry of Finance.

"Start-up period, high-tech and high-growth are the main criteria for our selection of projects. Those technology-based enterprises that are going to be listed are not within our support." Yang Rong said that 80% of the objects they support come from Xi'an High-tech Zone, " The other 20% will be invested in other regions. The support for each project is below 10 million yuan. "

Yang Rong revealed that Xi'an Hi-tech Venture Capital has accumulated a considerable amount of project resources. "These projects are being selected. As a local venture capital company, we are very confident in the future development of the fund."

Xi'an Hi-tech Ventures was established in 1999 with a registered capital of 150 million yuan. Its predecessor was Xi'an High-tech Investment Service Center, a joint-stock cooperative enterprise established in 1996. The company has been engaged in venture capital since 1996. It is an institution that was earlier engaged in venture capital business in China, and is also an important part of the investment and financing system of Xi'an High-tech Zone. The company's main focus is on growing companies in industries such as software, integrated circuits, communications, biomedicine, new energy, and military industries. Since its establishment, it has invested a total of 40 high-tech projects and has withdrawn from 18 projects.

Since the establishment of Xi'an High-tech Venture Capital, Xi'an High-tech Zone has registered 345 venture capital enterprises. In the past 12 years, the enterprises in the zone have accumulatively received 6.687 billion yuan of investment from various venture capital institutions. In 2010 alone, 22 enterprises in the zone received venture capital and private equity investment of 390 million yuan.

Xi'an High-tech Zone has established a 500 million yuan venture capital guidance fund, and has established four venture capital funds in cooperation with well-known investment institutions at home and abroad, including the "BOC International Energy Industry Fund", "Detong Capital Innovation Fund" and " "Kunwu Jiuding Venture Fund", etc., and attracted a large number of fund companies such as Shenzhen Venture Capital, Dachen Venture Capital, and Silicon Valley Paradise to settle in the park.