A Study On Sino-foreign Technological Innovative Investment Fund Operation Mode

With the remarkable and quick development of the cooperation of China and the US in science and technology,the dream of the foundation of Sino-US Technological Innovative Cooperation Fund will come true with the help of the Ministry of Science and Technology of China and the US Department of Energy.In this paper,the fund will be designed in this background.Firstly,by studying the investment consensus,emphasis and trend in emerging scientific and technological industries,the cooperation foundation and human resource exchange condition of China and the US,the strategy of Sino-US Technological Innovative Cooperation Fund can be made.This fund will support clean energy,biological medicine and IT industry with at least 10 billion RMB,and the fund will cover the investment scope of angel fund,VC,PE and M&A fund which mainly support overseas M&A and R&D center of Chinese companies.Secondly,based on the analysis of PE markets development status in China and the US,it can be concluded that the investment industries invested by Sino-US Technological Innovative Cooperation Fund have great prospects in China and have advanced investment skills in the US.Besides,the M&A market is large and experienced in the US,so the overseas fund exit channels of the fund in the US are available and supportive.Therefore,from the perspective of feasibility analysis,the Sino-US Technological Innovative Cooperation Fund is promising.However,due to the different levels of maturity and openness of the 2 countries' capital markets,there are still many obstacles and risks which should be faced if the capital of each country wants to enter the market of the other one.Therefore,good advice of the support mechanism of the two governments should be made.Thirdly,before deciding the size,organization mode,operation mode and management mode of the fund,different levels of comparable funds have been collected and classified to give more experience and inspirations to Sino-US Technological Innovative Cooperation Fund to make the programs invested by the fund operate successfully.Through all the analysis above,taking on fund strategy,cooperation potentials and experience from the similar funds into consideration,3 establishment modes of Sino-US Technological Innovative Cooperation Fund can be designed,which include 1-fund manager parallel fund,2-fund manager parallel fund and open investment alliance.What's more,to different companies invested by the fund can be in the different stages of their life cycles,so some advices have been made to solve the problem the fund may come across in the process of finance,investment,management after investment and exit of the fund.