China's government-backed venture funds raised RMB1.5tn in 2015

Government-backed venture capital funds in China raised roughly RMB1.5 trillion (US$231 billion) in 2015, bringing the total under management to RMB2.2 trillion, Bloomberg reported, citing data compiled by consultancy Zero2IPO Group. Consultancy firm Preqin said the pool of money – housed in 780 government guidance funds whose capital comes from tax revenue or state-backed loans – was five times the sum raised by other venture capital firms last year and represented the world’s largest pot of money for startups. Gary Rieschel, founder of Qiming Venture Partners, said the influx of cash raises the possibility of a boom-and-bust cycle like the government-led investment in China’s solar and wind power sectors.