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text丨chen bai, researcher at zhengbang think tank

premier li qiang presided over an executive meeting of the state council on september 18 to study measures to promote the development of venture capital. the meeting pointed out that venture capital is related to technological innovation, industrial upgrading and high-quality development. it is necessary to clear the bottlenecks in the "fund-raising, investment, management and withdrawal" links as soon as possible, support qualified technology-based enterprises to go public at home and abroad, vigorously develop equity transfer and merger and acquisition markets, promote the pilot program of physical distribution of stocks, encourage social capital to establish market-oriented merger and acquisition mother funds or venture capital secondary market funds, and promote a virtuous cycle in the venture capital industry.

as early as the state council executive meeting held on june 7 this year, the study of policy measures to promote the high-quality development of venture capital was listed as an important topic. three months later, venture capital once again became the focus of the state council executive meeting. in fact, not only the state council executive meeting, but also the central economic work conference at the end of 2023 clearly proposed "encouraging the development of venture capital and equity investment", and the government work report in march 2024 once again mentioned "encouraging the development of venture capital and equity investment, and optimizing the functions of industrial investment funds"; in april this year, the central political bureau meeting clearly proposed "actively developing venture capital and strengthening patient capital".

why has venture capital appeared so frequently in decision-making discussions in less than a year? the answer is actually very simple - venture capital is an important source of market vitality and a key link from macroeconomic growth to micro-enterprise development expectations.

venture capital, also known as risk capital, is mainly equity investment in start-ups with high growth potential. these companies are usually in the early stages of development and have innovative products or services. venture capital can not only provide financial support to start-ups, but also provide guidance in management, marketing, and industry expertise.

venture capital supports innovative companies, which not only promotes employment, but also plays a positive role in promoting the implementation of new technologies and the innovation of business models. therefore, whether from the perspective of industry, finance or even the macro level, promoting venture capital is an extremely critical means to activate the market.

the industry development experience in the past few years clearly shows that venture capital has played an important role in the innovation and implementation of business models, and has also provided sufficient impetus for the rapid rise of a number of startups, which is the basis for the expansion of the new economic ecosystem. today, when high-tech technologies such as artificial intelligence and semiconductor chips have become more critical fields in the global technological race, we also expect venture capital to play its advantages and set new records.

however, it must be noted that compared with previous business model innovations, this round of new technological revolution has higher requirements for venture capital. it not only requires investors to be forward-looking and visionary and to "invest early and invest small", and to actively intervene in the early stages of technological transformation to discover its value, but also requires venture capital to maintain patience and long-termism, and to provide more room for tolerance and trial and error for innovation. from this perspective, models similar to the integrated circuit large fund are relatively more referenceable for implementation. for this reason, this state council executive meeting also clearly pointed out that it is necessary to promote state-owned capital investment to become more responsible long-term capital and patient capital, and to improve relevant policy measures on state-owned capital investment, assessment, fault tolerance, and exit.

it is also worth noting that compared with the state council meeting in june that proposed to optimize support policies around the entire chain of "fund raising, investment, management and exit", this meeting put forward requirements with clearer directions and goals for promoting venture capital, which is to clear the bottlenecks in all links of "fund raising, investment, management and exit" as soon as possible.

what are the bottlenecks and blockages? as we all know, a key "blocking point" that directly affects venture capital expectations and choices is the exit issue, which is further connected to the changes in the secondary capital market. in this regard, the meeting also gave a clear solution, which is to consolidate the institutional foundation for the healthy development of venture capital, implement key measures for capital market reform, improve the functions of the capital market, and further stimulate the vitality of the venture capital market.

overall, the frequent mention of encouraging the development of venture capital itself means that future macro-control and industrial policy making will pay more attention to the power of the market, promote the optimization of resource allocation through market-oriented means, and support the growth and development of potential enterprises; at the same time, such encouragement is also intended to guide funds to more promising and innovative enterprises and fields, and promote the upgrading of industrial structure, which is also the meaning of driving high-quality development through innovation.

executive producer: zou ming

producer: gao mingyong

review: zheng xinping