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Another $1 Billion Blockchain Fund to Launch With Government Backing

Another Chinese city is launching a fund worth over $1 billion in order to support the development of blockchain-focused enterprises.

The district government of the Jiangbei new area in Nanjing city announced the plan to launch the 10 billion yuan (around $1.4 billion) blockchain fund last Friday. The project will be funded through a public-private partnership, according to a report from Xinhua News Agency.

Yuandao Capital – a fund launched by Yuan Dao, chairman of a blockchain industry alliance established by top Chinese academic institutions – will join as a partner of the blockchain fund. The other partner is Jolmo Investment Management, a publicly listed venture capital firm based in Nanjing.

The Nanjing government will contribute 30 percent of the total amount as a guiding fund, while the other 70 percent will come from the private sector, another local news report indicates.

Thirty percent of the fund will focus on early stage blockchain startups, as well as innovations from academic institutions in China; 40 percent will be allocated to traditional industrial companies looking to adopt blockchain technology; and the remainder will be used to “discreetly” fund cryptocurrency projects, the report said.

The effort follows reports that the municipal governments of the Chinese cities of Hangzhou and Shenzhen have both launched blockchain-dedicated funds of $1.6 billion and $80 million, respectively.

Nanjing’s plan also comes as President Xi Jinping and the State Council are both voicing support for blockchain development. Xi notably endorsed blockchain as an economic “breakthrough” for the first time in his remarks to a group of scientist in May.

Nanjing image via Shutterstock

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Another Chinese City Is Backing a Big Blockchain Investment Fund

The city government of Shenzhen, China, is backing a dedicated blockchain investment fund, soon after Hangzhou city supported a similar effort.

Announced at a blockchain event in the city on Sunday, hosted by the China Electronic Commerce Association, the fund aims to invest 500 million yuan ($80 million) in blockchain startups in Shenzhen during its first phase.

Notably, through a public-private partnership, 40 percent or $32 million of the fund will come from an angel fund that was launched in late March by the Shenzhen municipal government. The remainder will be led by the private sector, according to a report by Sohu.

The angel fund has a total of 5 billion yuan ($800 million) to invest in the city’s startups, around 4 percent of which will now be allocated to local blockchain projects.

The day-to-day operation of the new fund will be managed by two state-owned investment firms, supervised by the city government commission that oversees all state-owned assets, the report said. In light of that, Liu Zhongpu, a ocal government official and a commissioner of the Shenzhen government’s advisory commission, will serve as an adviser to the fund.

The news comes just weeks after the country’s Hangzhou government backed the launch of the Xiong’An Global Blockchain Innovation Fund, which has $1.6 billion to invest in innovative startups – 30 percent of which will come from the city.

Shenzhen image via Shutterstock

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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$1 Billion Blockchain Fund Launches with Chinese Government Backing

A new Chinese blockchain fund has $1.6 billion available to invest in innovative startups – 30 percent of which is backed by a city government.

Dubbed Xiong’An Global Blockchain Innovation Fund, the new initiative was announced Monday at the opening ceremony of a new Blockchain Industrial Park in Hangzhou – a Chinese city noted for its support for innovation and which plays host to major companies such as Alibaba.

According to a report from Sohu, while the fund has been launched by Hangzhou-based venture capital firm Tunlan Investment, it will see over $400 million coming from the Hangzhou city government as a guided fund that will be used to invest in promising blockchain projects. The industrial park will also act as an incubation center for the startups.

The new fund will have Xu Xiaoping – founder of Zhenfund, a venture capital firm that has invested in blockchain projects such as Stream and Lino – as its advisor. Li Xiaolai, a notable blockchain investor and bitcoin tycoon in China, has been appointed a manager of the fund.

The new fund marks the latest effort from Chinese government entities in taking the lead on blockchain development initiatives in the country.

It notably also arrives just weeks after a government-led investment association in China scrapped a plan to establish a blockchain funding center due to internal structural conflicts.

Meanwhile, a government-led research body that is also based in Hangzhou recently launched a blockchain platform for identity and supply-chain tracking, according to a report by CoinDesk in March.

Hangzhou image via Shutterstock

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.