The National Social Security Fund, often referred to as the “patient capital” in venture capital circles, has officially arrived, marking a significant milestone in the realm of science and technology innovation. On October 31, the Jiangsu Social Security Science and Technology Innovation Fund, with an initial scale of 50 billion yuan, was officially launched in Nanjing. This fund is a collaborative effort involving the National Council for Social Security Fund, the Jiangsu Provincial Government, the Suzhou Municipal Government, and ICBC Financial Asset Investment Co., Ltd. Suzhou Innovation Investment Group Co., Ltd. (Suzhou VC Group) has been appointed as the fund manager. The fund operates on a two-tier structure of “fund-of-funds + direct investment” and adopts a joint management model, aiming to seamlessly integrate resource allocation with professional operations.
Just a few days prior, on October 27, the Zhejiang Social Security Science and Technology Innovation Fund, also with a scale of 50 billion yuan, was signed in Hangzhou. This fund is a joint initiative by Zhejiang Province, the National Council for Social Security Fund, and the Agricultural Bank of China. Through market-oriented operations and professional management, the fund will leverage social capital to invest in key science and technology innovation fields, strongly supporting the construction of an innovative Zhejiang and accelerating the development of a modern industrial system with distinct Zhejiang characteristics.
The official launch of these two social security science and technology innovation funds, achieved through central-local cooperation in the Yangtze River Delta, has garnered significant attention in the science and technology innovation and venture capital circles. This development has injected strong confidence into the entire innovation chain.
The Jiangsu Social Security Science and Technology Innovation Fund was conceived in May this year. After extensive communication and deliberation among all parties, the National Council for Social Security Fund and Jiangsu Province planned to jointly establish the Jiangsu Social Security Science and Technology Innovation (Suzhou) Fund with an initial scale of 50 billion yuan. Specifically, the National Council for Social Security Fund contributes 20 billion yuan, Jiangsu Province contributes 20 billion yuan (with relevant provincial entities contributing a total of 2.5 billion yuan and relevant Suzhou entities contributing a total of 17.5 billion yuan), and the Industrial and Commercial Bank of China contributes 10 billion yuan, totaling 50 billion yuan.
Suzhou VC Group, the manager of the Jiangsu Social Security Science and Technology Innovation Fund, is a core venture capital platform under the Suzhou government. With a cumulative management scale of over 300 billion yuan, Suzhou VC Group has consistently ranked among the top in domestic authoritative lists. The group has eight subsidiaries, including Guofa Venture Capital, Industrial Investment Group, Suzhou Science and Technology Innovation Investment, Suzhou Angel Fund-of-Funds, Suzhou Fund, Suzhou Institute of Industrial Technology, Suzhou Science and Technology Investment Promotion Center, and Suzhou Strategic Emerging Industry Fund. With a registered capital of up to 18 billion yuan, it has entered the first echelon of domestic venture capital.
Suzhou VC Group has invested in multiple key projects and successfully nurtured several benchmark science and technology innovation enterprises with core technologies, such as Innoscience Technology, Zenlabs Energy, Ying En Biopharma, Borui Pharmaceutical, Lakala, and Mengguli, to go public on the capital market. The cumulative number of directly-invested listed enterprises has reached 64. In terms of direct investment business, Suzhou VC Group has cumulatively managed 86 direct-investment funds with a management scale of 81.541 billion yuan. It has made 427 direct-investment projects with a total investment of 7.226 billion yuan. Among the 35 funds with an investment period of more than three years, 14 funds have a Multiple on Invested Capital (MOIC) greater than 2, and 13 funds have a Distributed to Paid-in Capital (DPI) greater than 1, showing stable investment returns.
Currently, Suzhou VC Group has assembled a professional team of nearly 100 people covering investment, operation, risk control, and post-investment management to be fully responsible for the operation and management of the social security fund, ensuring efficient project investment and controllable risks. The establishment of this fund undoubtedly adds significant strength to Suzhou, known as a “major venture capital hub.”
The Zhejiang Social Security Science and Technology Innovation Fund is also notable as the first equity investment fund in China jointly set up by a local government, the national social security fund, and a financial asset investment company (AIC). This fund will set up six special funds, namely: Zhejiang Province Strategic