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Zhongguancun, Beijing’s Silicon Valley, promises RMB 15 billion to early-stage startups

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Charles Glass
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Regional government bodies at Zhongguancun, a district in Beijing which is well-known for software innovation and R, aim to help introduce over RMB 15 billion ($2.2 billion) private capital to tech projects in the area by providing pilot government financial supports, Beijing Daily reports (in Chinese).

By doing so, the area hopes to ensure that fundamental tech projects and early-stage startups will have sufficient material support to survive and grow.

According to an official announcement, the Zhongguancun government will help pay over RMB 100 million in loan interest for tech companies to reduce capital borrowing cost by 20%.

The decision is likely to encourage over RMB 10 billion in loans to be issued in the area.

The government has also decided to inject RMB 65 million into investment institutions to hedge any risks an angel round and early-stage investment will lead to.

This aims to particularly support startup enterprises with heavy tech input which yields little short-term material gain.

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