In a bid to enhance financing support for startups, Shanghai has introduced new measures, including increased backing from the government guidance fund and an ongoing emphasis on developing key industries such as integrated circuits, biomedicine, and artificial intelligence.

The city has consistently promoted venture capital development, unveiling supportive policies in 2014 and 2019 to bolster VC firms and angel investors, and directing social capital to increase early-stage investments.

In response to a rapidly evolving market, the city has revised its policies and created new guidelines to further promote venture capital development in Shanghai. These will take effect from August 1 and remain valid for one year.

The revised guidelines are organised into five aspects with 19 detailed measures. Key adjustments include supporting a financial asset investment company to increase direct equity investment, selecting a professional investment team to focus on early-stage science and technology enterprises, and establishing funds for future industries, Shine News reports.

The guidelines also feature incentives through government guidance funds, such as increased profit sharing and support for early-stage investments in core science and technology.

Furthermore, the new measures will expand fundraising and exit opportunities for VC firms, promote mergers and acquisitions (M&As) and sector integration, and offer facilitation for overseas M&As in key industries.

They will also maintain targeted support for the city's three core industries - integrated circuits, biomedicine, and artificial intelligence - along with crucial sectors such as electronic information, life and health, automobiles, high-end equipment, and advanced materials.

Last month Shanghai launched three major pilot industry parent funds totalling 100 billion Yuan (US$13.7 billion), focusing on integrated circuits, biomedicine, artificial intelligence, and the future industry.

Moreover, by the end of last year, Shanghai had nearly 600 science and innovation carriers, including 65 state-level science and technology business incubators, 60 new internet public service platform spaces, and 14 national university science and technology parks.