GDD devotes more efforts to attracting venture capital

The revised version of the preferential policies for venture capital institutions in Guangzhou Development District (GDD), which were previously released in 2017, was launched on July 13 with a period of validity of five years.

The revised version is expected to further attract various kinds of venture capital resources to cluster in GDD.

Venture capital management companies newly set up in GDD meeting the requirements can receive a one-time reward of 6 percent of its administrative costs within one year since its registration date. The reward is limited to 20 million yuan ($2.86 million) for each company.

Venture capital institutes are encouraged to increase their continuous investment for science and technology companies at the seed stage or initial stage, with the reward for investing in one single company increasing from 5 percent to the current 10 percent of the investment volume, with a maximum reward of 5 million yuan per year.

Venture capital companies introducing high-quality companies they have invested in to GDD can receive a reward of up to 1 million yuan. Venture capital companies can also receive a reward of up to 1 million yuan if the companies they introduced has attracted more than 50 million yuan in investment from other venture capital companies within two years after settling in GDD.

Companies in GDD are encouraged to strengthen cooperation with overseas capital, such as those from Hong Kong and Macao. 

By the end of June, GDD has clustered 447 venture capital institutes, managing an overall capital volume of 96.2 billion yuan.

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