LED people look at it: the incubator entrepreneurial project lost half of the government compensation!

My friends, come and start a business in Guangdong boldly. On April 8, the official website of the Provincial Department of Science and Technology announced the "Trial Rules of the Guangdong Provincial Department of Science and Technology and the Guangdong Provincial Department of Finance on Venture Investment and Credit Risk Compensation Funds for Technology Business Incubators." This is definitely a big plus for technology companies investing in startup projects in incubators.

For projects that fail in venture capital investment in the incubator, the venture capital investment risk compensation funds from the provincial and municipal governments will be compensated based on a total of 50% of the investment loss of your project. If a bad debt occurs in a first-time loan project, the bank, provincial and municipal finance parties will share all losses on the loan principal of the bad debt project. This favorable policy will be implemented on April 1 and will be valid for 3 years.

The reporter learned from the detailed rules that for failed venture investment projects within the incubator, the provincial fiscal venture capital risk compensation fund will compensate the venture capital institution at 30% of the project investment loss. The local municipal financial venture capital investment risk compensation funds will compensate venture capital institutions at 20% of the project investment losses. (Note: The subject of venture capital risk compensation is the actual investment loss amount caused by the venture capital institution during the financial year due to liquidation or impairment withdrawal due to investment failure)

For bad debt projects arising from the first loans of incubated enterprises, banks will share losses based on 10% of the loan principal of bad debt projects, and provincial finance and local municipal finance credit risk compensation funds will share losses based on 50% and 40% of the loan principal of bad debt projects respectively. (Note: The first loan project for incubated enterprises refers to the first loan project for incubated enterprises within the technology business incubator)

It is reported that the provincial finance’s risk compensation or principal loss compensation for a single project shall not exceed 2 million yuan. The local municipal finance can set an upper limit on the amount of risk compensation or principal loss compensation for a single project based on actual circumstances.

Which projects can receive venture capital risk compensation

Of course, not all entrepreneurial projects can receive financial compensation. The document stipulates that venture capital risk compensation funds are supported by: corporate or limited partnership venture capital institutions with financing and investment functions that invest in technology-based small, medium and micro enterprises in the early stage of technology business incubators.

The so-called technology-based small, medium and micro enterprises in the early stage of technology business incubators refer to the following companies whose registration place and main R&D and office premises must be within the technology business incubator site: the establishment time does not exceed 5 years, the number of employees does not exceed 300, and the company is directly engaged in Enterprises whose scientific and technological personnel in research and development account for more than 20% of the total number of employees, whose total assets do not exceed RMB 30 million, whose annual sales or turnover do not exceed RMB 30 million, and who have independent scientific and technological achievements (including patents, new technology products, proprietary technologies, etc.).