15 billion, Shanghai's super limited partners are booming

The Jiema LP in the investment community learned that the Shanghai Future Industry Fund announced the completion of an expansion - its scale increased from 1 billion US dollars (equivalent to 10 billion yuan) to 1.5 billion US dollars (equivalent to 15 billion yuan), and 800 million US dollars (equivalent to 8 billion yuan) has been fully paid - in.

A little earlier, the Shanghai Future Industry Fund announced its intention to participate in six sub - funds, namely: Shanghai Zhiyou Yarui Investment Partnership (Limited Partnership) (provisional name), Shanghai Chuangzhi Shulian Phase I Venture Capital Investment Partnership (Limited Partnership), Shanghai Xianghui No. 1 Venture Capital Investment Partnership (Limited Partnership) (provisional name), Jiading Optoelectronic Angel Equity Investment Partnership (Limited Partnership) (provisional name), State Grid New Power System Venture Capital Fund Partnership (Limited Partnership) (provisional name), and Hangzhou Yuanjing New - start Small and Medium - sized Venture Capital Investment Partnership (Limited Partnership).

So far this year, the Shanghai Future Industry Fund has announced its intention to participate in three batches of a total of 18 sub - funds. Such an active pace is rare in the industry and can be regarded as the best portrayal of Shanghai's scramble for future industries.

1.5 billion US dollars: Shanghai's most active state - owned capital is making intensive investments

Going back to last September, the Shanghai Future Industry Fund was officially established. With a total scale of 1 billion US dollars (equivalent to 10 billion yuan), fully funded by the Shanghai Municipal Finance, it is positioned as an open and enabling platform to promote disruptive innovation, multi - disciplinary cross - innovation, incubation of frontier platform - based technology directions, and early - stage investment. It focuses on technologies with strong scientific attributes, high transformation risks, lack of existing industrialization conditions, but rapid iteration and the potential to bring about huge changes.

In terms of management, Shanghai Future Qidian Private Fund Management Co., Ltd. (hereinafter referred to as "Shanghai Guotou Future") serves as the fund manager. Established in October 2024, Shanghai Guotou Future is a fund management platform jointly established by Shanghai Guotou Company.

In January this year, the Shanghai Future Industry Fund officially released the application guidelines, extending an olive branch to VC/PE institutions across the country and then began to make intensive investments:

In April, it announced its intention to participate in six sub - funds, including Shanghai Bolian Brain Science Industry Venture Capital, Shanghai Anfu Chuangsheng Synthetic Biology Venture Capital, Muhua Shuiqing (Shanghai) Venture Capital, Shanghai Fengrui Ruijia Investment Center, Shanghai Lenovo Future Venture Capital Fund, and Zhongke Chuangxing Hard Technology (Shanghai) Equity Investment Fund;

In August, another six sub - funds were selected - Shanghai Puqing Bencao Venture Capital Investment Partnership (Limited Partnership), Shanghai Bilinxing Phase IV Venture Capital Investment Partnership (Limited Partnership) (provisional name), Suzhou Qianji Kangrui Investment Center (Limited Partnership), Shanghai Kaifeng Kaixing Venture Capital Investment Partnership (Limited Partnership) (provisional name), Shanghai Dingfeng Future Energy Venture Capital Investment Partnership (Limited Partnership) (provisional name), and Infinite Qihang Haihe (Tianjin) Venture Capital Investment Partnership (Limited Partnership).

With this announcement, the Shanghai Future Industry Fund plans to invest in three batches of 18 sub - funds, making it the most active state - owned capital at present.

It is worth mentioning that the Shanghai Future Industry Fund has broken the registration location restriction. As clearly stated in its "Application Guidelines", sub - funds should generally be registered in Shanghai. However, it is also clearly stated that sub - funds investing in overseas targets or those in which the Shanghai Future Industry Fund's subscribed capital contribution does not exceed 20% of the total subscribed capital contribution of the sub - fund are not subject to this restriction. Looking back, the Shanghai Future Industry Fund has also invested in sub - funds registered in Suzhou, Tianjin, and Hangzhou.

In addition, in terms of direct investment, the Shanghai Future Industry Fund has made a strategic investment in China Fusion Energy Co., Ltd., which is also the first direct - investment project of the Shanghai Future Industry Fund.

To sum up, the Shanghai Future Industry Fund has currently laid out a number of excellent projects in cutting - edge fields such as controlled nuclear fusion, quantum computing, AI for Science, and brain - computer interfaces. Next, the fund will continue to focus on early - stage layout in future fields such as disruptive innovation and frontier platform - based technologies, and carry out all - round cooperation of "investment + ecosystem" with more sub - funds and projects to support the construction of Shanghai as an international science and innovation center.

Sound the industrial clarion call

Shanghai's determination to compete for future industries is self - evident.

The so - called future industries are forward - looking emerging industries driven by frontier technologies, currently in the incubation or early industrialization stage, with significant strategic, leading, disruptive, and uncertain characteristics. They represent the direction of the new round of scientific and technological revolution and industrial transformation and are the active force for economic growth.

In terms of specific sub - directions, they include humanoid robots, quantum computers, emerging displays, brain - computer interfaces, 6G network equipment, ultra - large - scale new intelligent computing centers, the third - generation Internet, high - end cultural and tourism equipment, advanced and efficient aviation equipment, etc., all of which belong to future industries.

Shanghai is one of the earliest cities in China to layout future industries. In 2022, Shanghai released the "Action Plan for Shanghai to Build an Innovation High - ground for Future Industries and Develop and Expand Future Industry Clusters", which clearly stated the goal - to reach a future industry output value of about 50 billion US dollars (equivalent to 500 billion yuan) by 2030. Most future industries are still in the early stage from 0 to 1 and especially need financial support.

Currently, Shanghai has formed four innovation high - grounds for future industries: the Brain - like Intelligence Future Industry Agglomeration Area in Yangpu, the Brain - computer Interface Future Industry Agglomeration Area in Minhang, the Silicon Photonics Future Industry Agglomeration Area in Pudong Zhangjiang, and the Ultra - wide Bandgap Semiconductor Future Industry Agglomeration Area in Lingang New Area.

There are also a series of measures supporting the construction of these agglomeration areas: the matrix of future industry funds was initiated, and incubators, concept verification platforms, public technology R & D service platforms, and Shanghai Key Laboratories have been located in these agglomeration areas.

Not long ago, Beiyang Artificial Intelligence Innovation Town in Xuhui District, Shanghai was officially launched. Sequoia China officially launched the "Sequoia China Innovation Accelerator" at the promotion meeting. At the same time, the Xuhui Artificial Intelligence Youth Venture Capital Fund in Shanghai announced that it would cooperate with Sequoia China to carry out the "Young Plan". The fund has a scale of 200 million US dollars (equivalent to 2 billion yuan), with Xuhui Kechuangtou under Xuhui Capital serving as the fund manager and Sequoia China as the special investment advisor. It aims to provide financial, resource, and ecological support for young entrepreneurs to help more early - stage innovative enterprises grow.

The logic behind these scenes is easy to understand. After all, the fate of an industry has always been closely related to the fate of a city. Only cities with industries have a future.

This article is from the WeChat official account "Investment Community". Author: Wu Qiong. Republished by 36Kr with authorization.