Venture capital on the rise in Hangzhou

Despite a late start, venture capital investment is gaining ground in Hangzhou, Zhejiang province, with the emergence of a number of quality innovative startups, according to figures released at the 7th China Venture Capital Forum on June 13.

"The number of venture capital institutions registered in Hangzhou has exceeded 1,800, and the city leads the country in terms of new institutions, surpassing Beijing, Shanghai and Shenzhen," said Chen Hongwan, director of fiscal and financial affairs for the National Development and Reform Commission.

He attributed Hangzhou's recent success to the city's commitment to optimizing its business environment in recent years.

In 2008, Hangzhou set up a venture capital guiding fund of 1 billion yuan ($144.4 million) to invest in companies with strong potential. Other financial platforms such as Yuhuang Shannan Fund Town, a hedge-fund hub in Shangcheng district, also have a role to play in attracting foreign venture capital funds.

The growing prowess of Hangzhou's venture capital has stimulated the development of innovation and entrepreneurship in the city.

In the future, Hangzhou will increase financial support for innovation and entrepreneurship to attract talents, while also introducing preferential policies and optimizing the business environment for small and medium-sized companies.

As a sideline event of the ongoing 2019 National Mass Innovation and Entrepreneurship Week in Hangzhou, the forum drew over 400 officials, entrepreneurs and representatives from financial organizations.