Chinese City Launches $1.6B USD Blockchain Innovation Fundbr>
Chinese venture capital firm Tunlan Investment has launched the Xiong’An Global Blockchain Innovation Fund to invest in promising blockchain startups in China.
The fund, which was announced at the opening ceremony of a new Blockchain Industrial Park in Hangzhou, was co-established by the local government of Yuhang District, a suburb of Hangzhou, Hangzhou Future Science Town, and Tunlan Investment. It has $1.6 billion available to invest in innovative startups. Thirty percent of the funding comes from the government of the city of Hangzhou.
Blockchain investor Li Xiaolai has been appointed as manager of the fund and will be charged with investing the fund into blockchain projects with high potential for returns. Xu Xiaoping, an investor and founder of seed stage focused venture fund Zhen Fund, will be the advisor to the new fund.
The new Blockchain Industrial Park in Hangzhou, a city noted for its support for innovation and which plays host to major companies such as Alibaba, will be used as an incubator for blockchain startups selected by the fund.
The announcement of the fund came after the government-affiliated Investment Association of China (IAC) scrapped its plan to establish a blockchain funding center due to internal structural conflicts.
While the Chinese government has been anti-cryptocurrency, it has maintained a neutral stance when it comes to blockchain technology. Last month, the China Banknote Blockchain Technology Research Institute, a government-led research body, rolled out a blockchain-as-a-service (BaaS) platform for identity and supply-chain tracking.