Business Incubators
China IPO Group has entered into agreements with International Business Incubators located within High Tech Zones.
Xian International Business Incubator (XIBI)
XIBI is situated in the city of Xian, Shanxi Province, a city famous for its aerospace and other hi-tech industries. It has an official population of approximately 7 million, and has a large concentration of institutions of higher education, with circa 35 public universities, and around 672 Research and Development Centers. XIBI is located within the Xian High Tech Zone, which presently covers an area of approximately 34 fully developed square kilometres and a further 14 square kilometres (approximately) to be developed. The Xian High Tech Zone hosts circa 23 companies which are listed on domestic or overseas stock markets. In 2001 it was listed as one of the 5 model Hi-tech Zones in China.
Tianjin TEDA International Business Incubator (TIBI)
Founded circa 1998, part of Tianjin Economic Development Area (TEDA), which is a High-Tech Zone, TIBI is the leading business Incubator in TEDA which is situated by the sea in Tianjin’s Tanggu district. It maintains close links with Nankai University, Tianjin University, the 46th Research Institute of the Ministry of Information Industry, the 8358 Institute of Aerospace Industry Co, the Seawater Desalination Research Institute of the National Ocean Bureau, the Tianjin Laser Research Institute and other high-level educational and research institutes.
Current government plans are to develop the Bohai Sea area around Tianjin as the focus of the next phase of Chinese national development. This Incubator is currently building two large buildings to make a total area of approx. 1,000,000 square metres for incubator space. The Incubator’s objective is to have circa 500 companies within three years. This Incubator currently focuses on the IT, Chemical, Biotech, Automotive, New materials and Environmental protection sectors.
Tianjin Technology Incubator Center
This Incubator is part of the Tianjin Technology Entrepreneurship Services, which was founded in 1989. The Incubator itself was founded in 1991, and currently has circa 11,000 square metres of space, of which circa 7,000 square metres is for leasing to companies in the start-up phase. The focus of this Incubator is on start-ups.
In addition, the Incubator manages the Tianjin Innofund Center, which funds new high-tech companies, and undertakes the selection process for the awarding of government grants. The Incubator works with circa 200 -230 companies which have applied for government grants, in addition to the circa 70 companies housed within its building. In 2007, there were circa 284 companies applying for these grants, for each of which there exists a detailed report and business plan which is an important source of company information. The Incubator also runs an angel investment company, currently with circa 18 investments.
This Incubator focuses mainly on the Electronics, Biotech and Medicine, New Materials, Energy and Environmental protection sectors.
Venture Capital Companies
China IPO Group has entered into agreements with Chinese venture capital firms situated in the cities which host the Business Incubators. With each of these local VCs, a Memorandum of Understanding has been signed with a view to sharing information about potential investment opportunities and working together as co-investors.
Shaanxi Zenisun Venture Capital Ltd,
12F, Shijixing Building,
West 2nd South Ring Road,
Xi’an
Shenzhen Capital Group, Xi’an Venture Capital Management Company Limited,
Room A2, 9th Floor, Royal City Group,
100 Huan Cheng South Road,
Xi’an
Xi’an Sure-Land Capital Investment Ltd.,
1409F/B, Pioneering Square,
48 Keji Road,
Xi’an
Teda Venture Capital Corporation Limited
3/F North Area,
Software Building No. 80,
4th Avenue,
TEDA Tianjin
In addition, China IPO Group has become a member of the Shanxi Venture Capital Association.
A note on Business Incubators in China
Incubators are organisations which have been created to support entrepreneurial and innovative start-up companies. Entrepreneurs with feasible projects are selected and admitted into the Incubators, where they are offered specialised support resources and services. Generally, Incubators are situated within and owned by Science Parks or High-Tech Zones which are government funded.
The Chinese government have historically funded Science Parks and Incubators. This funding began with the Key Technologies R&D Programme in 1982, the High Tech research development programme in 1987, and the Torch Programme of 1988, which was given the responsibility for establishing new High Tech industrial development zones.
In May 1988, the State Council approved the creation of the Haidian Experimental Zone in Beijing for the development of high and new technology Ten years later, the first Chinese Science Park, the Zhongguancun Science Park, was established in the Haidian Experimental Zone, based on the model of science parks in the USA and UK. As of November 2008 there were an estimated fifty-three Science Parks based on the Zhongguancun Science Park model.
The International Business Incubators are characterised by the presence of returned Chinese students who after studies abroad (mainly in the USA and UK) wish to become entrepreneurs.
The Science Parks benefit from a series of financial and policy incentives originally established by the State Council. These may vary slightly from one Science Park to another; the following examples of favourable tax policies are taken form the current policies of Xi’an High Tech Zone.
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