Over 50 VC Firms Flock to Take Stakes in First 25 Star Market Listees

ZHANG YUSHUO

(Yicai Global) July 22 — Shanghai’s new Star Market has attracted more than 50 venture capital firms to invest in the first group of 25 companies, including chip testing system maker Hyc Technology, that started trading today.

The clutch of VC firms includes Shenzhen’s Songhe Venture Capital which invested in the four companies of laser display maker Guangfeng Technology, components firm Fangbang Electronics, computer vision company ArcSoft, and high-speed railway braking system parts maker Tian Yi Shang Jia, the Securities Times reported today.

President Xi Jinping birthed the idea of China’s Nasdaq-style market, formerly known as the Science and Technology Innovation Board, last November, and the new market was officially launched on June 13. The board aims to make it easier for tech startups to secure funding.

The establishment of the board prompts more private equity and venture capital firms to fund tech startups, Li Wei, founder of Songhe VC, told the same news source.

The Star Market is a great opportunity for entrepreneurs as it offers them a good exit channel, said Fu Zhekuan, chairman of QF Capital Management.

Editor: Emmi Laine