Reportedly, Suzhou Government plans to establish a VC guidance fund, to attract VC/PE funds at home and abroad to invest in Suzhou, to ultimately enhance the industrial upgrading of local enterprises and adjustment of industrial structure.

Busheng Mao, GM of Suzhou Hi-tech Investment Company, said they plan to attract RMB5B or RMB10B VC funds with the RMB500M or RMB1B government guidance fund. The scale of guidance fund is being probed; the cooperation funds will include those from Taiwan.

Sources say the initial blue print of Suzhou government guidance fund is similar to that of Suzhou Industrial Park. This guidance fund will be managed by Suzhou Hi-tech Investment Company and invested in projects in accordance with Suzhou industrial polices. With the reference of Suzhou Industrial Park, this government guidance fund will encourage social capitals to invest in Suzhou.