Since its establishment in 2018, the Beijing Science and Technology Innovation Fund (Beijing Sci-Tech Innovation Fund) has significantly influenced China's tech landscape. Launched with an initial capital of RMB 20 billion and a total scale of RMB 30 billion, it became the country’s first government-led fund focused on tech innovation. Over six years, it has successfully mobilized RMB 82.4 billion, investing in 491 enterprises across 600 transactions, with a total investment of RMB 15.582 billion in future industries within Beijing.

533 Beijing-Based Enterprises Benefit from Long-Term Capital

A standout beneficiary is Mingjia Semiconductor, a leader in developing gallium oxide substrates. "This small wafer-like material used to cost RMB 7,000 when imported from Japan, but now, with domestic production, the cost has dropped to around RMB 2,000 to 3,000," said a company representative.

Gallium oxide, a crucial material in fourth-generation semiconductors, surpasses traditional silicon carbide in voltage tolerance, temperature resistance, and power efficiency. However, its development requires extensive financial and intellectual investment over time. In January 2021, Mingjiareceived funding from one of the Beijing Sci-Tech Innovation Fund's sub-funds. The company recently achieved a breakthrough in producing 4-inch gallium oxide wafers, marking a critical advance in China's semiconductor industry.

In total, 533 enterprises in Beijing have received over RMB 17 billion from the fund through 645 deals, including companies such as Yanming Bio, Weidejie, and Songyan Power, reinforcing Beijing's position as a hub for high-tech innovation.

15 Years of Patient Capital to Support Long-Term Growth

Deep-tech startups often face long development cycles and high risks, making sustained financial support crucial. The Beijing Sci-Tech Innovation Fund, with its 15-year lifespan, was designed to address these challenges. It encourages its sub-funds to operate for at least seven years, with early-stage innovation funds averaging over eight years in duration.

This patient capital is fueling the growth of a new wave of technology enterprises. Zhipu Huazhang’s advanced AI model has attracted interest from over 1,000 institutions across 70 countries. Yushi Technologyhas taken Beijing’s autonomous driving technology to the Middle East, and ISVhas launched globally leading RISC-V chips. These companies, among others, have expanded their business scale, patented new technologies, and increased their contributions to Beijing's tech ecosystem.

Attracting Non-Beijing Capital to Cultivate "Golden Seeds"

The fund's unique approach includes fostering partnerships with top universities and research institutes. Collaborating with Tsinghua, Peking University, and others, it has created 15 sub-funds to convert scientific breakthroughs into commercial successes. Notable among these is the Zhongguancun Zhiyou Scientist Fund, initiated by 18 top scientists from institutions like Tsinghua University and Shanghai Jiaotong University, focusing on hard technology investments.

“Half of our investments target early-stage innovations, 30% go toward the commercialization phase, and 20% are dedicated to cutting-edge industries,” said a representative from the Beijing Sci-Tech Innovation Fund.

In addition to local capital, the fund has attracted significant non-Beijing investments. Of the 61 sub-funds established, RMB 21.8 billion has been committed by external investors, multiplying the original capital and further enhancing Beijing's tech sector growth.