Policy easing SOE funds for start-ups a welcome move

The latest policy moves jointly issued by the State-owned Assets Supervision and Administration Commission of the State Council and the National Development and Reform Commission are definitely good news for those who have achieved breakthroughs in certain technological fields. It will help them use their technological breakthrough to set up enterprises.

Reports say that the latest move allows State-owned enterprises to establish venture capital funds to invest in start-ups that feature four characteristics, namely early-stage, small-scale, long-term investments and hard technology.

A nascent-stage enterprise needs funds to increase opportunities for growth. Small-scale refers to micro- and small-businesses and in this category funds would be directed toward those in need rather than those already well-resourced. This is of significant importance for various startups because technological innovation companies generally consist of small teams that gradually grow into companies impacting society. The technologies developed by researchers in such companies benefit the whole of society. With national-level support, more such companies will have the opportunity to grow into big enterprises.