Chinese City of Shenzhen Backs $80M Blockchain Investment Fundbr>
The government of the Chinese city of Shenzhen has launched a venture capital fund to support indigenous blockchain related applications. The announcement was made at a blockchain event hosted by the China Electronic Commerce Association (CECA) on Sunday.
The blockchain venture capital fund will be managed by Donghai and Star Capital, two investment funds controlled by the state-owned Assets Supervision and Administration Commission of the State Council (SASAC). Local government official Liu Zhongpu will serve as an adviser to the fund.
During the first phase, the fund targets investing 500 million yuan ($80M USD) in blockchain startups in Shenzhen. 40 percent or $32 million of the fund will come from the Shenzhen Angel Investment Guidance Fund, which was launched late in March by the Shenzhen municipal government. The remaining amount would be contributed by the private sector.
The blockchain technology iniative by the Chinese Academy of Sciences and the Shenzhen Institute of Innovation and Development will collect over 100 blockchain seed projects to invest in as the incubation project for the venture capital fund.
While Chinese regulators continue the clampdown on cryptocurrencies, local governments in the country have been pushing for supportive policies for blockchain startups.
Earlier this month, the Chinese city of Hangzho launched the Xiong’An Global Blockchain Innovation Fund during the opening ceremony of the Hangzhou Blockchain Industrial Park. The fund has $1.6 billion available to invest in innovative startups. Thirty percent of the funding comes from the government of the city of Hangzhou.
Katt Gu, the managing director at iBlock, an incubator for blockchain projects at the University of Illinois, saw the development as a positive for the overall blockchain industry. “Those two initiatives imply that more local governments in China are paying attention to blockchain technology.”