Venture capital is experiencing another spring!

Securities Times Reporter Cai Jiangwei

There is a lyric that says “Spring flowers will bloom.” China’s venture capital industry, after experiencing a cold winter cycle, is finally welcoming another spring. At this year’s two sessions, the government work report paid unprecedented attention to the venture capital industry. According to industry insiders, the level of importance is “unprecedented.” During the subsequent economic theme press conference, national-level merger and acquisition funds were also put on the agenda. This indicates that the top-level design for the critical exit stage in the venture capital “fundraising, investment, management, and exit” ecosystem now has strong policy support.

I vaguely remember a venture capital industry seminar two years ago, where leaders from venture associations across multiple provinces and cities gathered. An elder encouraged everyone: the spring of venture capital has arrived. However, the response was sparse, much like the then-uncertain weather. Yes, at that time, both external US technology restrictions and internal low confidence in the capital markets created a challenging environment. The sentiment in the secondary market inevitably affected the primary market. On one hand, fundraising became increasingly difficult, with some leading institutions’ key personnel spending most of their time just trying to “find money.” On the other hand, regarding “what to invest in,” they faced complex and changing industry regulations and listing policies. In terms of management, products issued during the previous boom cycle were reaching the end of their contracts, and the aggressive investment pace at that time was met with the reality of a significant slowdown in IPOs, making the situation more difficult. When all stages of “fundraising, investment, management, and exit” are hindered, even the most optimistic venture capitalists cannot help but feel lost—how long will the winter last, and when will spring come?

But the situation soon changed. That same year, during a high-level symposium, representatives from the venture capital industry appeared for the first time and posed a profound question about unicorns, like a thunderclap signaling spring. Technological innovation has become a key factor in the power struggle of major nations. However, on the balance scale between the two main players—one with a scale of over ten trillion yuan and the other measured directly in US dollars—the weights are vastly different. Facing the risk of “losing at the starting line,” the industry received continuous policy support.

We see that the “9.24” series of new policies revitalized the secondary market, and decision-makers paid significant attention to the venture capital industry in several heavyweight meetings. At the ministerial level, the National Development and Reform Commission successively promoted the establishment of the National Venture Capital Guidance Fund and the National M&A Fund, aiming to safeguard the industry from both fundraising and exit challenges; regarding investment and management, various investment institutions showcased their capabilities; China Securities Regulatory Commission Chairman Wu Qing also stated that upcoming reforms to the ChiNext board would introduce a more precise and inclusive listing standard, actively supporting high-quality innovative and entrepreneurial enterprises in new consumption, modern services, and other sectors. This will greatly alleviate institutional anxiety about investment prospects in consumer and other sectors.

The spring thunder roars, rain nourishes, and all things grow. The display of a major country’s strength is not only reflected in breakthroughs in chips, impressive robots, and dazzling large models but also in the global dominance of new energy vehicles, LABUBU, and short dramas. We need to fill in our shortcomings and strengthen our advantages. Achieving this goal requires not only the efforts of entrepreneurs and scientists in innovation but also the support of venture capitalists. Currently, the secondary market has already rewarded those venture capitalists who dared to sow seeds early with real money.

I believe that at the next venture capital industry seminar, everyone will be happy to sing together: “Spring flowers are blooming.”