Six Years Later: Shenzhen Angel Mother Fund Eases Reinvestment Requirements

Six major changes respond to policy documents in the past two years and also signal subsequent capital contributions.

On March 26th, Shenzhen Angel Investment officially released the "Application Guide and Selection Measures for Shenzhen Angel Investment Guidance Fund (2026 Edition)". Six years have passed since the 2020 edition was introduced.

The Shenzhen Angel Mother Fund was established in May 2018 with a scale of 10 billion yuan. It was jointly established by the Shenzhen Municipal Government and the Shenzhen Investment Holdings Co., Ltd. It is the first 10-billion-level angel mother fund in China.

According to the data from CVSource of China Venture Capital, as of March 26, 2026, the Shenzhen Angel Mother Fund has cumulatively invested in 98 sub - funds (more than 10 of which were invested by the Shenzhen Seed Mother Fund, for which the Shenzhen Angel Mother Fund acts as the investor on behalf). The total investment amount exceeded 9 billion yuan.

However, since April 2024, the Shenzhen Angel Mother Fund has not carried out the selection of participating sub - funds. The release of this new version not only responds to relevant policy documents in the past two years but also sends a positive signal for subsequent continued investment.

By comparing the 2026 edition with the 2020 edition, we found that Shenzhen Angel Investment has made coordinated efforts in multiple dimensions such as relaxing access, optimizing home - coming investment, extending the cycle, and strengthening performance. It has not only lowered the cooperation threshold for high - quality institutions but also more precisely guided capital to early - stage hard technology.

The following six points are the differences between the old and new versions, which can also be regarded as signals of the development trend of government investment funds.

01. Cancel the hard constraint on GP's establishment in Shenzhen

In the old version of the measures, except for top - tier institutions, management institutions were required to be registered in Shenzhen in principle. The new version cancels this restriction and only requires that sub - funds be registered in Shenzhen in principle. The management institutions only need to set up a fixed office in Shenzhen with core personnel residing there (paying social insurance).

This adjustment reduces the cost for institutions to conduct business in Shenzhen and conforms to the policy trend in recent years - no longer insisting on locking institutions in Shenzhen, but focusing more on whether talents and projects can be truly implemented.

02. Add indicators of investing in unicorns and little giants to investment ability

The new version upgrades the recognition of investment ability. It not only examines the management scale but also clearly requires investing in at least one unicorn, or one company with a market value of one billion US dollars, or three national specialized and sophisticated "little giants".

This means that the Shenzhen Angel Mother Fund has higher performance requirements and is more inclined to entrust funds to teams that have successfully discovered star enterprises in strategic emerging industries.

03. Extend the term and add follow - on investment

Early - stage hard - technology startups have a long cycle and large investment. The Shenzhen Angel Mother Fund has also made adjustments according to this characteristic.

Extension of the term: The new version extends the term from 10 years to 15 years, giving more growth time to underlying technologies and conforming to the direction of patient capital.

Follow - on investment: A new requirement for follow - on investment is added, encouraging sub - funds to invest no less than 10% of the amount in projects already invested by the seed fund or seed sub - funds. At the same time, by setting the pre - emptive right of the "20 + 8" industrial funds in subsequent rounds of financing, the capital relay from "seed - angel - growth stage" is connected.

04. Loosen the home - coming investment requirement

The new version weakens the home - coming investment clause and no longer requires a 1.75 - fold home - coming investment. It is clearly stated that as long as the investment amount in Shenzhen is not less than the paid - in capital of the angel mother fund, there is a chance to apply for buy - back or profit - sharing. Here, buy - back refers to the buy - back of sub - fund shares. "When the investment amount of the sub - fund exceeds 75% of its own paid - in amount and the investment amount in Shenzhen is not less than the paid - in capital of the angel mother fund, its management institution and other investors can apply to buy back the shares of the angel mother fund."

05. Refine the incentive mechanism and link it with performance

The new version improves the buy - back and profit - sharing mechanism. Although it continues the policy of transferring up to 100% of the excess returns, it clearly stipulates that the buy - back price and profit - sharing qualification must be linked to the performance evaluation results.

At the same time, the new version refines the composition of the buy - back price. The capital returns of investments in non - Shenzhen projects and Shenzhen projects are calculated at a simple interest rate of 5% and 2% respectively.

06. Explore the circular operation mechanism

The old version did not clearly state that the angel mother fund could operate circularly. The new version adds "For matters not covered, refer to the 'Circular Investment Plan for Shenzhen Angel Investment Guidance Fund' for implementation", which means that the Shenzhen Angel Mother Fund can achieve the recycling of funds, providing a more solid institutional guarantee for long - term accompanying the growth of hard - technology enterprises.

China Venture Capital has made statistics. Among the management measures for government investment funds newly added or revised in 2025, 57% clearly allow the rolling use of funds, 31% do not make clear instructions, and 12% of government investment funds clearly do not allow such operations.

For example, the management measures in some places state that "The investment income, interest, and returned principal belonging to the government shall not be rolled over for use. The guidance fund shall timely and fully turn them over to the state treasury in accordance with the relevant regulations of the fiscal treasury management system."

Therefore, at present, government investment funds are still in the stage of exploration and development in the rolling investment mechanism. Shenzhen Angel Investment clearly mentions this in the document, which also reflects that most localities are gradually paying attention to the circular amplification effect of fiscal funds. With the establishment of the circular operation mechanism and the improvement of the patient capital system, the Shenzhen Angel Mother Fund is expected to play a more continuous leading role in the cultivation of early - stage technological innovation.

More importantly, the selection document of Shenzhen Angel Investment also represents the development trend of the primary market. Obviously, after state - owned LPs dominate the primary market, they are exploring a new model that takes into account both policy requirements and market - oriented efficiency.

The original text of the document is as follows: