30-billion-yuan campaign to support Zhongguancun SMEs against COVID-19
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E-mail China.org.cn, April 24, 2020
On April 23, the Administrative Committee of Zhongguancun Science Park partnered with 30 venture capital firms to launch a special 30-billion-yuan investment campaign to help technology companies overcome difficulties brought by the COVID-19 outbreak.
The action aims to accelerate investment in the first half of 2020, focusing on early-stage technology companies of medium, small, and micro sizes in key areas such as life health, digital economy, collaborative working tools, and unmanned delivery.
"We have full confidence in the future of Zhongguancun technology companies," said Zhang Zhen, founding partner of Gaorong Capital, adding that the firm has invested in 15 companies this year.
Wang Ge, managing partner of CASH Capital, said, "Historical experience tells us when the economy is impacted and asset prices fall, it is just a good time to breed more new entrepreneurial models and high-quality companies, a right time for venture capital to enhance its investment matrix."
A survey by the Administrative Committee has shown that the COVID-19 outbreak has greater impact on venture capital firms that invest primarily in early-stage projects, whose investees also face capital and operational pressure. At the same time, startups in areas of AI, online medical care, telework, and fresh food e-commerce are booming with huge growth potential.
One of the potential investee under the special plan, InferVISION, disclosed that its AI-assisted pneumonia diagnosis product was recently launched in international markets, gaining favor of investors. The company is also currently raising a new round of financing.
In a further move, Zhongguancun will organize events like competitions and challenges, and set up online and offline roadshow platforms to facilitate the connection between high-quality projects and venture capital firms.
Additionally, in order to encourage private capital to invest in high-quality companies, Zhongguancun will give a certain percentage of risk subsidies to venture capital firms with good return-on-investment performance. Priority will be given to venture capital firms that are operating projects during the outbreak, in order to encourage them to speed up investment in technology companies.
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