Beilin, an urban district in Xi’an, Shaanxi province in Northwest China, leveraging its regional strengths, has pioneered a chain fund group encompassing "concept validation-seed stage-growth stage-maturity stage" to bolster new quality productivity through technology finance.

In a recent collaborative effort, seven governmental departments of the district jointly unveiled the "Work Plan for Solidly Advancing Science and Technology Finance," aiming to offer comprehensive financial services throughout the entire lifecycle of scientific and technological innovation activities for various innovative entities.

In November 2020, Beilin district initiated the establishment of the University and District Integration Seed Fund, with a total fund size of 10.1 million yuan ($1.39 million). This fund targets investment in the new generation of information technology, information innovation, intelligence+, and Internet+ sectors, focusing on scientific research innovation enterprises or projects led by teachers, students, and alumni of colleges and universities in Xi'an.

The fund has forged strategic partnerships with the Technology Transfer Center of Xidian University, the National University Science and Technology Park of Xi'an University of Architecture and Technology, and the Technology Research Institute of Xi'an University of Technology to facilitate the transformation, incubation, and investment of scientific and technological achievements within universities.

In December 2023, the fund injected 1 million yuan into Shaanxi Zhixin Epitaxial Semiconductor Co., Ltd., playing a pivotal role in promoting Zhixin's visibility and trust among a wider range of social capital.

Zhixin, a technology-driven company, boasts a core research team with over 20 years of expertise in silicon germanium epitaxial wafer growth. Leveraging national platforms such as MBE and RPCVD, the team has honed their skills in the use, debugging, and maintenance of epitaxial growth equipment.

Moreover, they have conducted systematic research on the growth of silicon-based IV group materials like silicon and germanium, leading to the development of a mature silicon-based IV group epitaxial growth process. This process has been refined for silicon and germanium epitaxial wafers under varying parameters.

Wang Wenliang, general manager of Shaanxi Zhixin Epitaxial Semiconductor Co., Ltd., introduces the company's products.

Products made by Zhixin

Wang Wenliang, the general manager of Shaanxi Zhixin Epitaxial Semiconductor Co., Ltd., showcased the company's diverse product range, highlighting applications in automotive radar, AR, VR, night vision, industrial testing, biomedicine, and military aerospace. The technology route explored by Zhixin epitaxy addresses cost and integration challenges effectively.

"In our product development journey, financing hurdles have been our primary challenge, and the fund has provided us with invaluable and timely support," Wang emphasized.

Shaanxi Longlin Nanofiber Materials Technology Co., Ltd. also benefits from the fund system, with a research team led by Professor Hu Jun from the School of Chemical Engineering at Northwestern University focusing on research and development of superhydrophobic coatings.

The research team of Shaanxi Longlin Nanofiber Materials Technology Co., Ltd., led by professor Hu Jun (left) from the School of Chemical Engineering at Northwestern University and founder of the company, is conducting research and development on superhydrophobic coatings.

Beilin district boasts 17 colleges and universities, 131 scientific research institutions, 10 State Key Laboratories, 6 national engineering technology centers, and 310 provincial and ministerial key laboratories and engineering technology centers. With over 30,000 scientific research personnel, including academicians of the Chinese Academy of Sciences, it leads in effective invention patents and 10,000 invention patents in the region, making it a hub of scientific and technological talent and achievements.

Despite being the smallest urban area in the northwest region with the highest population density and unit area output value, Beilin district faces challenges related to limited development space and resource depletion. In response, technology finance has emerged as a critical solution.

To date, Beilin district has pioneered the first concept verification fund in Shaanxi Province, alongside the university and district integration seed fund, venture capital fund, and science and technology achievement venture capital fund, forming a comprehensive chain fund group. This group has evaluated over 400 projects in universities, institutions, and technology-based enterprises, approving 55 projects targeting strategic emerging industries.

Currently, 17 investment projects have been completed, with a total investment of 88.4 million yuan. Nine invested enterprises have been earmarked as reserve enterprises for listing in Shaanxi Province, with companies such as  Borui Jixin, Norbert, and Saite Technology all gearing up for public listing on the stock exchange market.

Looking ahead, Beilin district plans to expand the fund's scale, actively seek support from the government guidance funds like venture capital funds, urban renewal funds, and industrial doubling funds, with a focus on strategic emerging sectors. Additionally, efforts will be made to enhance the reach and service capabilities of the technology finance service workstation.