Pudong New Area has launched a fund to combine equity and debt financing in a move to widen funding channels for small growth companies with core technologies and to encourage innovation.
With a size of 131.5 million yuan (US$20.2 million), the fund combines equity investment and credit loans to offer funding solutions for small and medium-sized firms, according to a statement released on the website of Pudong Intellectual Property Administration.
The fund mainly targets companies in strategic emerging industries and with their own intellectual property rights. At least a quarter of the fund will be invested in companies based in Zhangjiang High-Tech Park, according to the statement.
Pudong also adopted a plan to increase credit loans for intellectual property financing. Under the plan, Bank of China Shanghai Branch, Bank of Shanghai, Shanghai Pudong Financing Guarantee Co Ltd, and the Pudong Intellectual Property Financing Promotion Association worked together to create an IPR evaluation system. Loans will be allocated based on evaluation results.
The district government will subsidize evaluation costs. This is expected to cut the cost of intellectual property financing by 5 percent, according to the administration.
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