China Exclusive News Startups

China is setting up a $6.5 Billion Venture fund to boost country’s start-up growth

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Chinese government has begun a process to set up a new, National Venture Capital fund to help start-ups and upcoming entrepreneurs (via TechCrunch).  The new fund will be a massive 40 Billion RMB (US$ 6.5 Billion) in size and will be used to fund seed-stage tech start-ups in the country.

The new fund, which was announced by earlier this week by Chinese state council premier Le Keqiang,  will have capital invested by both Government and private entities.

This will bring in major relief to Chinese VC camps, largely due to the ever-declining interest of investors within Chinese VC firms.

This development will also come up under discussion in India’s start-up ecosystem. Though Indian start-ups have been receiving some huge investments lately, but a lack of a channelised Government sponsored fund to boost entrepreneurial environment still hinders start-up growth.

Though the government has incubation centres operating in large number of Tier-1 and Tier-2 cities, little has been done to encourage college graduates to start-up in those incubation centres. On the other hand, private sector incubation centres have been garnering huge footfalls and applications from start-ups largely because of a better placed infrastructure and more aggressive push by private players.

While Government hasn’t responded to the country’s booming start-up scene, large IT conglomerate from within the country have dedicated funds to invest into Indian tech and IoT start-ups. Infosys CEO recently announced a $250 Million fund, to be invested into early-age, tech start-ups from India.

Though China has announced a massive fund, India still gets advantage over its Northern neighbour due to a more open economy. Though it is still difficult for foreign businesses to operate, but the policies are more eased out in India, as compared to China. VC firms find it easier to operate in India, as compared to China and hence the large-scale investments which Indian companies receive.


 

Editor-at-large and co-founder at The Tech Portal. He is a tech enthusiast with interests in new-age technology fields like Ai, Machine Learning, AR/VR, Outer Space and related stuff. Drop him a mail anytime, very reachable.


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