In the opening ceremony of the 2024 Pujiang Innovation Forum held on September 7, Shanghai announced the establishment of a 10-billion-yuan future industry fund. This initiative aims to boost confidence in the early-stage technology investment market through government-led investment and facilitate the transformation of outstanding achievements at the source of innovation into new quality productivity.
The Significance of the Future Industry Fund
For Shanghai, which is striving to become a globally influential science and technology innovation center, the establishment of the future industry fund marks an important step from building a framework to strengthening functions. Future industries, driven by cutting-edge technologies, are currently in the incubation or early industrialization stage. They represent forward-looking emerging industries with significant strategic, leading, disruptive, and uncertain characteristics.
Features of the Shanghai Future Industry Fund
The Shanghai Future Industry Fund, as reported by the Shanghai Municipal Science and Technology Commission, has characteristics such as government guidance, long-term support, and tolerance for failure. The 10 billion yuan is fully funded by the Shanghai municipal finance, with a fund term of 15 years, which can be extended by an additional 3 years upon request.
Management and Investment Model
In the management of the Shanghai Future Industry Fund, Shanghai Guotai Investment Co., Ltd. will lead the establishment of a market-oriented fund management platform with state-owned capital control. This platform will focus on early-stage investments in the future industry sector, coordinate various resources, and create an open investment validation incubation integration platform.
The fund adopts a direct investment + sub-fund investment model. It will establish a strategic scientist committee, a technology project manager investment research team, and a linkage investment mechanism for concept validation funds. Direct investments mainly target major strategic projects in the future industry sector, while sub-fund investments can reach a maximum of 50% of the sub-fund’s contribution, with a repurchase and profit-sharing mechanism in place.
The Pujiang Innovation Forum
The Pujiang Innovation Forum, co-hosted by the Ministry of Science and Technology and the Shanghai Municipal Government, was established in 2008. The 2024 Pujiang Innovation Forum took place from September 7 to 10 in Shanghai, with the theme Sharing Innovation, Shaping the Future: Building an Open Innovation and Technology Environment.
Conclusion
The establishment of the 10-billion-yuan future industry fund in Shanghai signifies the city’s commitment to fostering emerging industries and becoming a global leader in science and technology innovation. With a focus on early-stage investments and a supportive government-led approach, this fund has the potential to drive significant advancements in key future industries and contribute to Shanghai’s ongoing transformation into a world-class science and technology hub.
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