Chinese venture capital firm Haiyin Capital and Washington-based National Council of Entrepreneurial Tech Transfer (NCET2) have teamed up to form a $1 billion joint venture called “The American-Chinese University Growth Fund” to provide Chinese venture funding for spinoffs of the American universities.
The fund will be the sole source syndicator of venture capital from China to invest in selected startups under NCET2 programmes over the next decades, the parties said in a joint statement.
They also indicated that more capital for the fund will be raised in the future.
NCET2 is mandated to produce the “University Startups Demo Day” where universities across the US submit their top startups created based on a $37 billion federal support. Every six months, 40 best startups will be chosen for the Demo Day by a corporate selection committee consisting of a rotating group of Fortune 500 member companies.
“China has over three trillion dollars in foreign reserves resulting from decades-old trade imbalances and we would like to get some of that money back to fund the commercialisation of federally-funded university research and to create jobs in the US. (…) Partnering with Haiyin Capital to systematically syndicate the venture capital deals in China allows us to do just that,” said Tony Stanco, executive director in NCET2.
…