Wuxi Government has been preparing for launching a RMB100M guidance fund for days. Paradise Silicon-valley Venture Investment Co. Ltd. (Paradise Silicon-valley) reached an initial agreement with the guidance fund. Paradise Silicon-valley will be the manager and provide project or fund guidance magnifying financial services for the fund. Reportedly, the previous operation achievements and standardized operation model of the Wuxi government funds won this deal.

Lianzhou Wang, a leader of The Fund Law draft team, said this is the first collaboration between a domestic PE fund manager and a government guidance fund, which is a milestone for the burgeoning PE funds in China.

VC investment scale and amount witnessed a skyrocketing increase in recent years. Generally, governments back VC firms with three models: First, to stake in VC firms; Second, to provide subsidy for high-risk early-stage technology companies; Third, to provide investment guarantee services for VCs.

A senior manager from Paradise Silicon-valley said government guidance funds can bring more social capitals to participate in investment to back more regional self-innovation enterprises.