The rise of China’s VC-industrial complex

development zone in the city of Wuhan has been abuzz since March, when the local government announced the creation of a 10bn-yuan ($1.5bn) investment vehicle. The Optics Valley Hi-Tech Venture Capital Guidance Fund aims to combine the animal spirits of private capital with the industrial objectives of the state. Its general manager, Li Yang, told state media in late May that more than 80 private investors had submitted formal proposals. Ten of these are already in the process of being approved.