On December 21st, Lou Jiwei, Chairman of the Global Wealth Management Forum and former Minister of Finance, stated at the “China Wealth Management 50 Forum 2024 Annual Meeting” that venture capital (VC) and private equity investment funds (PE) are the most effective financial products in supporting technology innovation driven development. Lou Jiwei pointed out that the investment targets of venture capital funds are usually early-stage technology enterprises, whose technology and management models are not yet mature, and the probability of failure is relatively high. However, successful projects will have higher returns, which can make the fund overall profitable. If the assessment holds every failed project accountable, fund managers will not dare to invest. He believes that in the current environment, there is a lack of market-oriented patient capital, so the focus should be on market-oriented transformation of government venture capital funds.
Scan code to share