Policy name  

Interim Administrative Measures of Beijing Municipality for Venture Capital Fund for Creative and Strategic Emerging Industries  

Issuer  

Beijing Municipal Commission of Development and Reform  

File No.  

JFG [2012] No. 694  

Fund size  

A total of RMB3 billion with RMB 1 billion for the first phase  

Investment operation  

Equity participation; follow-up investment  

Target  

Non-listed enterprises in Beijing's strategic and emerging industries under early and mid-stage venture period  

Application requirements  

Equity participation
1. When the organization is mainly engaged in the venture capital or venture capital management activities, its paid-in capital shall exceed RMB 100 million (or equivalent in foreign currency, the same below) or then venture capital under its management shall be not less than RMB100 million and all investors contribute in monetary form;
2. The number of other investors other than the national, guidance funds and regional governments shall be more than 3 (inclusive) and less than 15 (inclusive), and other individual investors shall contribute not less than RMB10 million;
3. There are at least 3 full-time senior officers having more than 5 years’ experience in venture capital or related business experience. Senior officers should in principle have managed venture capital enterprises that have been filed by the competent filing department and have excellent management performance;
4. The senior officers shall have at least 3 cases of successfully investing in strategic and emerging industries and the average annual equity yield arising from the investment shall be not less than 10%, or the equity transfer income is higher than the original investment by more than 20%;
5. Have standardized management and operation model and strict and reasonable investment decision-making procedures and risk control mechanism, and have established a sound performance incentive mechanism;
6. Have sound system of internal financial management and accounting methods in accordance with the national corporate finance and accounting system;
7. Have no bad records of significant fines by the administrative or judicial authorities.


  

Follow-up investments
1. When the organization is mainly engaged in the venture capital or venture capital management activities, its paid-in capital shall exceed RMB 100 million (or equivalent in foreign currency, the same below) or then venture capital under its management shall not be less than RMB100 million and all investors contribute in monetary form;
2. The number of other investors other than the national, guidance funds and regional governments shall be not less than 3 (inclusive) and no more than 15 (inclusive), and other individual investors shall contribute not less than RMB10 million;
3. There are at least 3 full-time senior officers having more than 5 years’ experience in venture capital or related business experience. Senior officers should in principle have managed venture capital enterprises that have been filed by the competent filing department and have excellent management performance;
4. The senior officers shall have at least 3 cases of successfully investing in strategic and emerging industries and the average annual equity yield arising from the investment shall be not less than 10%, or the equity transfer income is higher than the original investment by more than 20%;
5. Have standardized management and operation model and strict and reasonable investment decision-making procedures and risk control mechanism, and have established a sound performance incentive mechanism;
6. Have sound system of internal financial management and accounting methods in accordance with the national corporate finance and accounting system;
7. Have no bad records of significant fines by the competent administrative or judicial authorities;
8. The enterprises of strategic and emerging industry obtaining the follow-up investment of guidance fund must be start-ups in early and middle stages registered in Beijing, and the venture capital funds have been put in place.  

Attachment: Interim Administrative Measures of Beijing Municipality for Venture Capital Fund for Creative and Strategic Emerging Industries