- First batch of sub-funds exceeds 20 billion yuan as the city expands its long-term investment strategy
- The initiative aims to channel patient capital into AI, advanced manufacturing and life sciences
Nanjing has signed the first batch of sub-funds under its Zijinshan International Innovation Fund, committing more than 20 billion yuan ($2.95 billion) to technology startups as the eastern Chinese city ramps up efforts to become a hub for long-term venture capital.
The agreements, signed at the 2026 Zijinshan International Innovation Fund District Conference on July 10, cover 19 sub-funds managed by leading venture capital firms including CAS Star, CPE Fund, Legend Star and Addor Capital.
Another 40 investment projects spanning AI, advanced manufacturing and biopharmaceuticals were also announced.
“The agreements would strengthen the fund-of-funds’ catalytic role in attracting additional capital, while supporting the growth of local technology startups and accelerating the commercialization of research,” Wan Shun, general manager of Nanjing Innovation Investment Group, was quoted as saying in local media.
Betting on patient capital
The sub-funds are backed by the 10-billion-yuan Zijinshan International Innovation Fund, launched in February as the cornerstone of Nanjing’s broader “4+N” industrial fund network with a targeted scale exceeding 200 billion yuan.
Unlike traditional venture capital funds, the fund adopts a 20-year investment horizon—including an eight-year investment period, a 10-year exit window and a possible two-year extension—allowing managers to back deep-tech companies through lengthy commercialization cycles rather than pursuing rapid exits.
The fund will primarily invest through specialist venture capital managers while reserving a limited allocation for direct investments, creating a full financing pipeline from proof-of-concept and angel funding through venture capital, private equity and mergers and acquisitions.
Why it matters globally
Nanjing’s latest initiative reflects a broader trend in China as local governments experiment with new funding models to support strategic technologies.
The long investment horizon directly addresses one of the biggest challenges facing deep-tech investing: many semiconductor, AI and biotechnology companies require a decade or more to reach commercial scale, exceeding the lifespan of conventional venture funds.
The city, together with Jiangsu Province, is also stepping up efforts to attract overseas institutional investors.
In June, provincial authorities hosted a matchmaking event that brought together more than 30 global investment firms including Warburg Pincus, Macquarie Asset Management, Morgan Stanley, Blackstone and KKR with over 30 local technology companies working in new energy, biopharma and advanced manufacturing.
To date, the Zijinshan fund district has attracted more than 70 billion yuan in committed funds since opening in January, bringing together universities, research institutes, industrial partners and leading venture capital firms.
The ecosystem is designed to give domestic and overseas investors a clearer pathway from project sourcing and capital deployment to eventual exits.
