Venture capital to support five future industries

A venture capital investment alliance was launched during the ongoing Shanghai Talent+ Summit, which concluded on Saturday, aimed at supporting the development of the city's future industries.

The Shanghai Future Industry Venture Capital Investment Alliance was established at "The Next Unicorn Summit."

This has gathered government officials, renowned economists, founders of domestic and international venture capital organizations, operators of industrial parks in the city and entrepreneurs.

Wu Jincheng, director of the Shanghai Commission of Economy and Informatization, told the forum that Shanghai is determined to develop the five future industries – future health, future intelligence, future energy, future space and future materials.

The alliance will integrate strength from all relevant parties to provide policy support, industrial support, financial support, exchange and cooperation services for future industrial enterprises and help "unicorns" grow and prosper.

Tu Guangshao, executive director of the Shanghai Advanced Institute of Finance at Shanghai Jiao Tong University, said in his keynote speech that the innovation investment industry is facing a number of challenges. These include narrowing funding sources, less risk tolerance, more post-investment management pressure, and limited exit channels.

Local governments should increase support for innovation investment, encourage the agglomeration and development of venture capital, explore diversified fund-raising channels, encourage early investment in small enterprises and science and technology firms, and improve exit mechanisms, he added.