On October 25th, the Shenzhen sector of the A-share market showed strong performance at the opening, with Shenzhen Leaguer, Konka Group Co., Ltd, Shenzhen Huakong Seg and others all hitting the limit up, attracting the attention of many investors.

This is directly related to a major bullish announcement issued by Shenzhen. On the 24th, Shenzhen released the "Action Plan for Promoting High-Quality Development of Entrepreneurial Investment in Shenzhen (2024-2026) (Draft for Public Opinion)". For the first time nationwide, the term" bold capital" was proposed in the action plan.

The document proposes many important measures to promote the development of the venture capital industry in Shenzhen from various aspects such as guiding the development of "bold capital", cultivating "patient capital", attracting "overseas capital", strengthening "industry capital", optimizing and enhancing the development environment of the venture capital industry, and facilitating related services for venture capital, taking the city as the focal point. China has frequently introduced major policies to promote venture capital and technological innovation.

What is bold capital? How does it differ from patient capital? What investment signals does the policy trend release to investors?

Shenzhen has already made relevant explorations into "bold capital", with Shenzhen Leaguer providing sustained development momentum.

Considering the detailed content in the document regarding work objectives, implementation paths, etc., Shenzhen is the first to propose the cultivation of "bold capital", aiming to accelerate the establishment of a state-owned fund error-tolerant mechanism.

In simple terms, on the policy side, the encouragement is for state-owned funds to be bold in trial and error, and with a sound error-tolerant mechanism in place, "bold capital" is no longer just empty talk but can truly stimulate the investment vitality of the venture capital industry.

For a long time, 'patient capital' has focused on optimizing the exit mechanism, while 'bold capital' emphasizes more on optimizing the investment mechanism. With the comprehensive implementation of policies, the venture capital industry will usher in a comprehensive and vigorous development, and scientific and technological service platforms represented by Shenzhen Leaguer are also expected to benefit fully as a result.

It is worth noting that, leading the investment in early, small, and hard technology with 'bold capital' and 'patient capital', Shenzhen is at the forefront, with clear goals, and has already made multiple relevant exploratory deployments.

The 'Action Plan' mentions that by 2026, Shenzhen strives to form a group of trillion-yuan government investment funds, a group of hundred billion-yuan '20+8' industry funds, a group of billion-yuan angel mother funds and seed funds; it will build demonstration and aggregation areas for venture capital ecosystems in areas like Xiangmi Lake, Shenzhen Bay, Qianhai Bay, and Guangming Science City, providing no less than 5 million square meters of industrial space carriers and supporting facilities.

Taking Guangming Science City as an example, not long ago, Shenzhen's first seed fund with a scale of 0.2 billion yuan was officially launched. The fund was jointly established by Shenzhen Guangming District through district-guided fund contribution, together with Shenzhen Angel Investment Guidance Fund and Shenzhen Leaguer.

The fund's key investment direction is in biomedical and high-performance materials, with some projects already in reserve. The source of projects mainly relies on the technology innovation incubation system jointly built by Shenzhen Leaguer and shareholders, such as the Shenzhen Tsinghua University Research Institute. In addition, Shenzhen Leaguer has established comprehensive cooperation with various well-known universities and research institutes in Shenzhen to jointly explore and select technology transfer projects.

It can be seen that under the guidance of policies, Shenzhen Leaguer has deeply participated in building platforms to promote the transformation of scientific and technological achievements, providing crucial financial support for early-stage technology projects. Continuous strong accumulation in scientific and technological services also reflects its enormous success in enterprise development strategy.

It is important to know that without long-term funding support, innovative enterprises will face stagnation in technology research and development, and related scientific and technological achievements may not be implemented, which would be a huge loss for the country and society. As a 'nutrient solution', Shenzhen Leaguer undertakes the function of accelerating the transformation of scientific and technological achievements, helping early-stage enterprises achieve their self-value realization, and injecting vitality into China's technological innovation.

Today, Shenzhen Leaguer is building China's bold capital, patient capital, and long-term capital. With the country gradually warming up policies to promote the venture capital industry, Shenzhen Leaguer is promoting the growth of science and technology startups, and its own development will also accelerate further.

Having the characteristic venture capital of technology achievements transformation, serving the transformation and upgrading of industries in China.

In fact, shenzhen leaguer's professional capabilities have long been widely recognized by the industry. This is the core reason why shenzhen leaguer can frequently be active in the public eye while the city is constantly promoting technological innovation and industrial innovation.

First, as a venture capital institution with a background of 'state-owned assets + universities', shenzhen leaguer has been deeply involved in science and technology services for more than twenty years, not just doing simple equity investments. Now it has formed a strong ability to discover high-quality enterprises.

Shenzhen Leaguer has 38 innovation bases in the core areas rich in national scientific and technological innovation resources, and has jointly established 8 overseas innovation centers in North America and other places with the Research Institute of Tsinghua University in Shenzhen. It has incubated and served more than 4,000 companies, invested in nearly 500 high-tech enterprises, nurtured more than 30 listed companies, more than 200 specialized and new enterprises, more than 50 National Equities Exchange and Quotations-listed companies, more than 300 national high-tech companies, and more than 200 technology achievement transformation projects.

In June this year, the General Office of the State Council issued 'Several Policy Measures to Promote the High-Quality Development of Entrepreneurial Investment,' with a total of six items and 17 detailed rules covering the entire chain of fundraising, investment, management, and exit, supporting the high-quality development of venture capital. While keeping up with the national development strategy, it also brings unprecedented strategic opportunities for venture capital institutions.

For shenzhen leaguer, it has successfully explored the 'deep integration of industry, university, and research' technology innovation incubation system - the 'Four Chains', the 'Three Runs' and the 'Double First-Class' system, making continuous efforts in differentiated paths of technology achievements transformation.

Specifically, shenzhen leaguer takes providing first-class science and technology services and nurturing first-class technology companies as the core of its business, deeply integrates innovation, capital, talent, and industry chains, and promotes the high-quality development of enterprises. In this process, shenzhen leaguer is the best at 'running with, relay running, and leading in the race,' allowing start-ups in investment incubation to develop to listing, thus achieving the greatest value realization of enterprise development and investment.

Secondly, in the process of focusing on the transformation of technological achievements, shenzhen leaguer has reaped the 'rose of time,' investing in hard technology start-ups has been quite rewarding. Financial reports show that in the first half of 2024, shenzhen leaguer's business income from technological innovation services and strategic emerging industries reached 0.279 billion yuan and 7.46 billion yuan respectively. Despite a decrease in the number and amount of investment financing events in the market, the business operations are not afraid of the atmosphere of venture capital, demonstrating ample resilience.

Thirdly, Shenzhen Leaguer actively participates in and supports technological innovation, helping to upgrade the national scientific and technological industry, actively serving as a force in the development of China's new productive forces. Shenzhen Leaguer plans around the national strategic emerging industries and the '20+8' industrial cluster in Shenzhen, focusing on the major directions of national economic and social development such as new materials, new energy, and the digital economy, providing strong support.

It is not difficult to find that in the domestic venture capital industry, it is almost impossible to find a venture capital firm like Shenzhen Leaguer that has the characteristics of technology transformation, can achieve the current scale effect, and demonstrate abundant innovative vitality. While meeting the strategic need of promoting high-quality national development and accelerating the cultivation of new productive forces, Shenzhen Leaguer has gradually become a benchmark in the industry.

Technological innovation drives industrial upgrading, and the high-quality development of the venture capital industry can be expected.

In general, leading the development with 'bold capital' and nurturing 'patient capital,' with the participation of leading scientific and technological service platforms such as policies, markets, and Shenzhen Leaguer, to jointly form a synergy.

In addition to the release of this 'Action Plan,' the author has recently learned about two important pieces of information worth paying attention to:

Firstly, the senior leadership emphasizes 'promoting Chinese-style modernization, science and technology should take the lead, technological innovation is the only way, and science and technology talents are highly valued and treasured.' From the perspective of decision-making, China, moving towards high-level self-reliant scientific and technological development, will surely firmly grasp the initiative of development in its own hands.

Due to the long cycle and high risks of technological innovation, it requires long-term thinking and patient capital including Shenzhen Leaguer, to provide stable financial nourishment.

Secondly, in September, the pilot scope of equity investment by financial assets investment institutions expanded from Shanghai to Beijing, Tianjin, Shanghai, Chongqing, Nanjing, Hangzhou, Hefei, Jinan, Wuhan, Changsha, Guangzhou, Chengdu, Xi'an, Ningbo, Xiamen, Qingdao, Shenzhen, Suzhou and other 18 large and medium-sized cities.

Expanding the pilot scope of equity investment indicates that the equity investment of financial assets investment institutions will enter a period of rapid development. In the long run, it will bring more incremental funds to the market. Coupled with continuous optimization and release of future related policies, it is expected to accelerate the landing of more technology innovation projects. This also depends on technology innovation service platforms such as Shenzhen Leaguer Technology Innovation.

Furthermore, with the release of the 'Action Plan' in Shenzhen this time, it will create a demonstration effect and is expected to actively influence more cities nationwide, strengthen the necessity of 'bold capital' and 'patient capital', and promote the high-quality development of China's venture capital industry.

Summary

Looking at this year, a series of policy signals indicate that driving China's scientific and technological innovation and venture capital development is the general trend. With Shenzhen Leaguer Technology Innovation deeply involved, daring to trial and error, playing the role of patient capital and long-term capital, accompanying the growth of technology innovation enterprises and gaining market recognition.

Meanwhile, as a technology innovation service and industry incubation platform held by Tsinghua University Shenzhen Graduate School, Shenzhen Leaguer Technology Innovation possesses leading capabilities to serve technology innovation, continuously achieving operational results and realizing its intrinsic value. As the 'long-term partner' of enterprises, it consequently forms strong development momentum, and long-term value growth is expected to meet more investor expectations.