On July 30, CICC Capital released their 2024 application guide for the "Hainan Free Trade Port Innovation Investment Fund (No. I).” This edition of the application guide builds on earlier work and clarifies important information such as the types of sub-funds supported by Innovation Fund No. I, the sub-fund selection process, and application methods.

To further optimize the investment environment for innovation and entrepreneurship in the Hainan Free Trade Port (FTP), Hainan Financial Group initiated the establishment of the Hainan FTP Innovation Investment Fund. Starting with an initial investment of CNY 1 billion ($138 million), it adopts a "fund of funds (FOF)" investment strategy to guide social capital in supporting the introduction and cultivation—in the FTP's key industries—of “specialized, refined, distinctive, and innovative” small and medium-sized enterprises.

The Innovation Investment Fund consists of two independently operated CNY 500 million mother funds (Innovation Fund nos. I and II) separately managed by CICC Capital and Shenzhen Angel FOF.

Aerial view of the Headquarter Economic Zone of Haikou's Jiangdong New Area in Hainan Province. (Photo: Hainan Daily)

According to CICC Capital’s application guideline, the types of sub-funds supported by Innovation Fund No. I include:

1. Ones whose manager has been established for no less than three years, which have excellent historical performance, and a management team with many years of cooperation and working experience;

2. Ones whose core investment team has rich experience in early-stage project investment, leading industry knowledge of proposed sub-funds’ core investment areas, excellent investment and exit performance, and solid resource coordination capabilities;

3. Ones which can assign at least one managing partner to lead the fundraising, investment, management and exit work of the proposed sub-fund;

4. Ones whose manager has a deep understanding of the Hainan FTP’s industrial foundation, resource endowment, policy advantages, and institutional advantages, and who has the ability to introduce high-quality reserve projects to the Hainan FTP;

5. Priority support will be given to sub-fund managers with a good reputation and market recognition within the industry, and/or who have been listed in the venture capital and equity investment institutional rankings published by well-known institutions at any time in the past three years;

6. Priority support will be given to sub-fund managers that have  established deep ties with industry leaders or well-known (domestic or foreign) research institutes and have access to high quality resources for successfully promoting the transformation of scientific and technological achievements.

Eligible applicants should submit their application materials to CICC Capital. Specific application methods and required materials can be found on the CICC Capital WeChat Official Account “CICCcapital”.