Over the past year, the domestic venture capital industry has witnessed significant transformations. Spurred by policy incentives and the push towards transformation and upgrading, commercial banks have embarked on close collaborations with the venture capital sector, jointly supporting the full lifecycle financing of technological innovation enterprises. Leveraging their strengths in credit funds, banks aim to complement equity investments and venture into the primary market. Nevertheless, despite the fresh opportunities presented by banks' involvement in financing technological innovation enterprises, practical operations continue to face numerous hurdles. Industry experts recommend the establishment of a risk compensation mechanism to address these challenges and foster deeper partnerships between banks and technological innovation enterprises.
