See how state-owned venture capital in Pudong can "invest hard", strengthen the three "linkage", and cultivate a fertile land for science and technology innovation

Cultivating large-scale hard core industrial clusters is a key lever for China to promote the strengthening and supplementation of industrial and supply chains, and seize the high ground of technological competition. In recent years, Pudong New Area has strengthened its function as a source of scientific and technological innovation, continuously increasing investment in hard technology, and gradually achieving breakthroughs in the hard core industry. Focusing on "hard investment", Pudong State owned Venture Capital supports the strengthening, optimization, and expansion of science and technology innovation enterprises by creating a science and technology innovation industry ecosystem, improving innovation service efficiency, and strengthening enterprise cultivation platforms, accelerating the construction of a new highland for national independent innovation.

Linkage between national strategy and regional development

Building world-class industrial clusters

Building world-class industrial clusters is a strategic task entrusted by the central government to Pudong to build a socialist modernization leading area.

In order to further strengthen the coordination and linkage between the implementation of national strategies and regional industrial development, since the release of the Leading Zone Opinions, Pudong State owned Assets Management has focused on the national strategic deployment, focused on the main line of scientific and technological innovation, effectively used capital tools, played the role of fund aggregation, amplified the efficiency of state-owned capital, continuously promoted the upgrading of the industrial foundation and modernization of the industrial chain in the new area, and accumulated industrial strength for the "three leading industries" and the "six hard core industries". Pudong State owned Assets will accurately connect with the needs of science and technology innovation entities, introduce capital, talent, and policy resources as needed, continuously create a good business and industrial environment, and guide the "three leading industries" clusters to continuously gather in Pudong. The industrial scale is expected to exceed 750 billion yuan this year. With the assistance of state-owned asset industry sub funds in various tracks, new economic growth points in the six core industries are constantly emerging, and new economic momentum is constantly being released. At the same time, we will fully leverage the role of state-owned venture capital as the main force driving technological innovation and promoting high-quality economic development, accelerate the layout of the "four new tracks" and "five future industries", take the lead, and serve the construction of a high-tech innovation highland in Pudong New Area.

Requirement docking. Focusing on the needs of innovative entities, Pudong State owned Venture Capital adheres to the "service" orientation, faces the shortcomings of enterprise innovation and entrepreneurship such as "financial pressure", "talent shortage", "policy supply", and "market application", and extensively mobilizes and goes deep into the front line to comprehensively collect, sort out, and analyze the development needs of equity financing and fruit transformation of science and technology innovation projects in the new area. And according to the needs of enterprises, precise investment and financing docking, upstream and downstream cooperation, policy consulting and other services will be provided to relevant enterprises, achieving resonance in financing services, empowering development, and innovation transformation. At the same time, using the New Area Enterprise Service Center as a carrier and relying on the "Financial Companion with Enterprises" promotion platform, we will expand our publicity and build a resource bridge for the development of more hardcore science and technology innovation enterprises.

Resource import. Pudong State owned Venture Capital effectively coordinates and leads the multi-level capital system of the district, actively integrates the existing state-owned scientific and technological resources in the new area, and provides full lifecycle integrated services for scientific and technological enterprises, including spatial operation services, professional scientific and technological services, industrial investment services, and scientific and technological financial services, to build a cooperative and win-win collaborative innovation ecosystem. At the same time, actively leverage the guidance function of government industrial funds, strengthen cooperation with various market-oriented investment platforms, financial institutions, stock exchanges, regional equity trading centers, and government service platforms through capital bonds, guide market institutions and private capital to deeply participate in the construction of the new area's science and technology innovation ecosystem, and guide more high-quality projects, talents, capital, and technology to gather in Pudong.

Environmental creation. Pudong State owned Venture Capital focuses on creating a collaborative industrial environment among enterprises, universities, and research institutions, attracting a group of new research and development institutions such as major research institutes, universities, and technology innovation centers to successfully land and operate in Pudong, continuously expanding the momentum of innovation from point to surface. On the one hand, starting from the three leading industries, four new tracks, and five future industries, we will supplement, solidify, and strengthen the supply chain. With the help of 37 national enterprise technology centers, 75 open innovation centers for large enterprises, and over 200 technology public service platforms in Pudong, we will link "government industry academia research funding" resources, leverage our respective advantages, and promote technological breakthroughs, enterprise cultivation, and industrial upgrading. On the one hand, leveraging the functions of 14 national major scientific and technological infrastructure projects, including Shanghai Light Source and Shanghai Supercomputing Center, we aim to gather, cultivate, and incubate small and medium-sized technology enterprises in the innovation chain from the source, creating a favorable environment for building a more complete hardcore industry ecosystem.

Linkage between technological innovation and industrial ecology

Make up for the shortcomings in the development of science and technology innovation in Pudong

Technological innovation is an important driving force for leading industrial upgrading and cultivating an emerging industrial ecosystem.

In order to effectively leverage the positive linkage between technological innovation and regional industrial ecological development, the Pudong State owned Venture Capital team analyzed and researched the local science and technology innovation industry ecology, accurately depicted the industry, formed an industrial development map, and accurately positioned the shortcomings of the lack of upstream and downstream industrial elements in the science and technology innovation industry, as well as the loose integration of the industry and finance system. At the same time, in order to better serve the development of the industrial ecosystem, the Pudong state-owned venture capital team went to the pioneering areas of the venture capital industry, such as Beijing and Shenzhen, to conduct special research on institutions such as Zhongguancun Financial Services, Shenzhen Stock Exchange Science and Technology Rongtong, and Dachen Venture Capital, draw on good experiences and practices, and combine with reality to promote the construction of a venture capital system with Pudong characteristics. Currently, a state-owned venture capital carrier platform with Pudong Science and Technology Innovation Mother Fund, Leading Zone Fund, and Pudong Angel Fund as the main body has been formed, providing comprehensive, full chain, and full element support for the high-quality development of Pudong's science and technology innovation industry.

It is understood that in the process of constructing the state-owned venture capital system in Pudong, Pudong Investment Control Group, the manager of the "three major funds" in Pudong, has reshaped its business segments, restructured its business processes, and achieved collaborative linkage among venture capital, industrial investment, strategic investment, technology and financial services, and industrial research. Entrepreneurship investment focuses on "investing early and investing small", serving the transformation of scientific and technological achievements and innovation strategies; Industrial investment focuses on "investing in new and investing in good", relying on Pudong Capital to extend the investment stage to the middle and later stages, serving to promote the development of industrial clusters; Strategic investment focuses on "investing big and investing strong", by strengthening the construction of major functional platforms, serving the investment and financing of functional projects in Pudong and the landing of major strategic projects; Technology financial services focus on "post investment empowerment", comprehensively utilizing various financial instruments to provide precise value-added services throughout the entire lifecycle of innovation and entrepreneurship; Industrial research focuses on "investment research linkage", focusing on major policies, important plans, and key industries, conducting in-depth and precise industry research, and providing high-quality references for investment decision-making.

Next, Pudong Investment Control Group will combine the construction and improvement of Pudong's state-owned venture capital system to create a fusion circle of technological innovation, a friend circle of investment and education linkage, and a radiation circle of industrial upgrading. It will improve the integrated service system that matches the needs of enterprises, promote the coordinated development of technological innovation and industrial development, and make greater contributions to accelerating the construction of the leading area.

Linkage between venture capital platforms and industrial development

Injecting new momentum into the development of science and technology innovation industry

The strong growth of science and technology innovation enterprises cannot be separated from the continuous irrigation of capital's "active water".

The listing mechanism of the Science and Technology Innovation Board provides policy support for science and technology innovation enterprises. The Sci Tech Innovation Board, a capital sector that emerged from the transition of national momentum, is gradually becoming the preferred place for China's sci-tech innovation enterprises to go public. Data shows that there are currently 52 companies listed on the Science and Technology Innovation Board in Pudong New Area, of which 19 are invested by state-owned assets in Pudong, accounting for 36.54%. In the process of rapid growth and listing on the Science and Technology Innovation Board in a group of science and technology star enterprises such as Junshi Biotechnology and Nanxin Technology, Pudong state-owned assets have accompanied them.

Shanghai Nanxin Semiconductor Technology Co., Ltd., as one of the leading domestic simulation and embedded chip design enterprises, was established in Zhangjiang, Pudong in 2015. It focuses on the field of power and battery management, providing customers with end-to-end complete solutions. "Since its establishment, we have been focusing on the design of power and battery management chips. With the addition of Pudong State owned Assets, the company has achieved rapid development in recent years and was listed on the Science and Technology Innovation Board in April this year. In the view of Ruan Chenjie, Chairman and General Manager of Nanxin Technology, going public is just a milestone in the development process of Nanxin Technology, and the company will continue to follow the established strategic plan, walk steadily and go far.". As of August this year, Nanxin Technology has authorized 73 invention patents and has become a leading supplier of power and battery management chips in China.

Recently, Pudong New Area has issued the "Pudong New Area Incubation Carrier Full Chain Upgrade Peak Plateau Plan", aiming to accelerate the construction of a more attractive and competitive high-level science and technology innovation platform, better serve the national innovation driven and economic and social development strategy, highlight the role of innovation capital strategy, and increase support for the real economy and technological innovation.

Based on this, Pudong has established a diversified scientific research public service platform resource and more than 190 distinctive industry incubators, such as the Pusoft Incubator and Zhangjiang Entrepreneurship Workshop, attracting many hard technology startups to settle in Pudong, continuously injecting vitality into the innovative development of Pudong's hard core technology industry, releasing innovation spillover effects, and promoting efficient transformation of innovation achievements.

The Pudong state-owned venture capital team told reporters that nowadays, venture capital institutions are increasingly providing "nanny style" services. Instead of the traditional "fundraising, investment, management, and retirement" investment model, we are combining investment and resource integration to address issues such as office space, policy consulting, and project expansion. In terms of investing in hard technology, venture capital institutions are continuously improving the ability of incubation carriers to discover, cultivate, incubate, and serve innovative enterprises. Through various methods such as resource integration, capital operation, supervision and regulation, training and guidance, they help promote the rapid development of invested enterprises and provide new impetus for the development of the science and technology innovation industry.

Hard core technology is a cutting-edge technology in high-tech, directly leading the development direction of emerging industries and also serving as a compass for future industrial development. Pudong State owned Venture Capital will fully leverage the leading role of state-owned capital in scientific and technological innovation, industrial cultivation, and functional platform construction. With the advantages of an open system, talent gathering, and sufficient capital in the industrial ecosystem, it will accelerate the improvement of local scientific research and technological innovation capabilities, gather and strengthen the joint force to promote high-quality development of science and technology and industry in Pudong, grasp the entire innovation chain from 0 to 1 to 10 to 100, accelerate the construction of a modern industrial system supported by the real economy, and help Pudong build a competitive world-class industrial cluster.

Text: Xu Sufei

*Reprinted from official WeChat account released by Pudong