Fujian fight for VC/PE

Fujian is also here.

The investment community-decoding LP learned from Fujian that in order to implement the decision-making and deployment of the Provincial Party Committee and Provincial Government, and accelerate the development needs of the five cities in southwestern Fujian (Xiamen, Zhangzhou, Quanzhou, Sanming, Longyan), the five cities in southwestern Fujian It is intended to jointly build the investment fund in southwestern Fujian.

According to the data, the total scale of the investment fund of southwestern Fujian reached RMB 10 billion, and the first phase was operated in the industrial fund model, with a scale of 2 billion yuan. The deadline for this acceptance was before 16:00 on August 18, 2022.

At this point, we have seen another provincial parent fund.

01 Five cities in Fujian joined forces to establish 10 billion parent funds

Recruit GP for the whole country

This is a iconic parent fund in Fujian.

The southwestern Fujian Development Investment Fund was established in 2020. The funding subject designated by the five cities in southwestern Fujian serves as a limited partner, and the total funding of not more than 30%is subscribed. In this issue, the five cities have subscribed for a total of 600 million yuan. Among them, Xiamen's investment accounted for 40%, Zhangzhou and Quanzhou's investment accounted for 20%, Sanming, and Longyan's investment in 10%. The remaining capital funds are raised by fund management agencies to social capital, and the owners of each city are not the largest investors in the fund. The fund manager is the China Communications Investment Fund Management (Beijing) Co., Ltd.

The southwestern Fujian Development Investment Fund is mainly invested in key industrial projects and major infrastructure projects of the five cities in the southwestern part of Fujian, and provides capital guarantee for promoting the construction of southwestern urban agglomeration, port groups, and industrial group construction. The project is direct.

In terms of investment direction and requirements, the fund focuses on the implementation of the national development strategy and support the real economy. Priority investment in projects in southwestern Fujian, the amount of investment in the field of industrial planning in accordance with the key development of the five cities is not less than 60%of the fund scale.

At the same time, the fund follows the principle of decentralized investment. The investment amount of a single project does not exceed 20%of the fund size, the proportion of the equity of the invested company does not exceed 30%, and it will not become the largest shareholder of the investment company; The industrial transformation and upgrading of the five cities in southwestern Fujian requires small and medium -sized enterprises with the funds to the seed period, the initial period or the establishment of less than 5 years. The cumulative investment scale is not less than 10%of the fund scale.

In terms of returning investment requirements, the fund invested in the amount of enterprises in the southwestern Fujian region of not less than 1.5 times the total amount of the five municipal governments. Among them, the amount invested in Sanming and Longyan is not less than 1.5 times the amount of their own capital contribution, and the investment in other cities is not less than 1 times that of their respective contributions. When the fund chooses investment projects, in principle, the Sanming and Longyan project should be given priority.

In addition, the fund manager should promise to complete the investment of at least one enterprise in the southwestern Fujian region before the fund is contributed for the second time. It is not lower than 50%of the agreed return target. If the above commitments are not completed, the five cities have the right to refuse the manager's subsequent funding requirements.

122 billion yuan in funds, set up a super -investment platform

VC/PE rush to Fujian

In the past two years, the most lively scene of the venture capital circle is that local governments have rushed to set up an industrial parent fund, which also includes Fujian.

I remember in June last year, Fujian Innovation Research Institute plans to set up an innovative investment fund with a scale of 10 billion yuan, which mainly invests around science and technology enterprises. Enterprise accelerate development.

In September, Quanzhou Jiaofa Group's Quanzhou Jianfa Private Equity Management Fund Management Co., Ltd. initiated the establishment of a new transportation development industry parent fund, with a scale of 10 billion yuan. The fund mainly invested in the new transportation industry; The Group also launched an innovative parent fund with a scale of 5 billion yuan. Its subsidiaries funds are investing around innovation and entrepreneurship, urban renewal, and major industrial layout.

Entering this year, Fujian Venture Capital forces rose greatly. In January of this year, the Ningde City SDIC company initiated the Fujian Provincial Marine Economic Investment Fund with a total component scale of 20 billion yuan. The parent funds with a scale of 4 billion yuan have been made a sensation.

Subsequently, Xiamen City and Jingwei Venture Capital Cooperation jointly launched the establishment of a SME Development Fund with a scale of 2.5 billion yuan. SMEs such as services, new supply chains and other industries. By July, Jinjiang City, Fujian also joined the Army of the Industrial Mother Fund to set up Jinjiang Industrial Development Mother Fund with a total scale of 5 billion yuan to promote the transformation and upgrading of the local industry.

Among them, it is worth mentioning that at the end of February this year, the Fujian Provincial Department of Finance rarely contributed 100 billion yuan to set up Fujian Financial Investment Co., Ltd., which mainly engaged in private equity investment fund management, investment, asset management services, and entrepreneurial investment fund management services Wait for business.

For a long time, Fujian has been regarded as "venture capital desert" by the outside world. Investment circles recognize the development of the Yangtze River Delta and the Pearl River Delta where the manufacturing industry cluster is developed, but there are few capitals asking the long coastal coastal provinces with the long coastline. But in fact, Fujian has a lot of rich and mature industries. The external environment of the coast has created the character of good business in the bones of Fujian people. On the whole, the private economy of Fujian Province is active and developed. In 2021, the GDP of Fujian Province reached 488.1036 billion yuan, ranking eighth in the country, with a year -on -year growth rate of 8%. From the perspective of GDP per capita, Fujian ranks fourth in the country with $ 18,200, second only to Beijing, Shanghai and Jiangsu.

Fujian has a coastline of about 3,700 kilometers in length. Ningde, Fuzhou, Putian, Quanzhou, Xiamen, Zhangzhou and other cities have fallen. At the same time, the marine industry resources are rich, and they also have certain port advantages and have developed foreign trade. In addition, Fujian also has a lot of mineral resources, and the famous purple gold mining industry is out of Fujian.

In the field of manufacturing, Fujian also ran a lot of well -known companies. In the early years, Jinjiang City, Fujian Province was famous for the mature shoe and clothing manufacturing industry cluster. More than 3,000 shoe and clothing manufacturers gathered here. Here, many well -known listed companies such as Anta, Tubu, 361 degrees, etc. Among them, Anta's market value once exceeded 500 billion Hong Kong dollars, second only to Nike and Adidas.

In terms of electronic information manufacturing, only the Fujian Electronic Information Industry Group has many companies such as Heitai, Huaying Technology, Starnet Ruijie, and Fujian Jinhua. In the field of hot semiconductor in recent years, Fujian has also produced Sanan Optoelectronics, the largest LED chip manufacturing company in the country. With the advantages of the geographical location across the sea in Taiwan, Fujian also attracted semiconductor companies such as Taiwan Lianhua Electronics to build a joint venture chip wafer processing plant in Fujian.

Speaking of the current new energy vehicle industry with the highest market prospects, Fujian occupies a place in various provinces across the country. The Ningde Times from Ningde City, Fujian Province ranked first in the world in the field of new energy vehicle power batteries. In the past two years, it has emerged in the secondary market in the secondary market. Can get a golden flash business card.

In addition, the foundation of the automotive industry in Fujian was not weak. Not only did it have OEMs such as Jinlong Bus and Southeast Automobile, but also well -known car accessories such as Fuyao Glass. On the hottest air outlet, Fujian, with a certain industrial foundation, has a lot of potential to be tapped.

Nowadays, Fujian has spared no effort to vigorously develop the parent fund of the industry. Naturally, it is hoped that through the power of capital, it will leverage more resources to drive the transformation and upgrading of industries in the province and have higher quality development. Here, it is rising to become a new venture capital fertile soil.

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