(Yicai) June 25 -- The Shanghai Future-oriented Industries Fund, which is a CNY10 billion (USD1.4 billion) government-backed investment vehicle, is expected to invest in more than 20 sub-funds this year, targeting sectors such as brain-computer interfaces, synthetic biology, artificial intelligence for science and quantum technology, its general manager said yesterday.

The line between scientific research and industry is becoming increasingly blurred, Wei Fanjie said at the 2025 International Synthetic Biology Industry Development Forum yesterday. Fields that were previously hard to imagine becoming a reality, such as quantum computing and nuclear fusion, are now being commercialized.

This presents huge opportunities for the Shanghai Future-oriented Industries Fund, which was set up last year by the Shanghai municipal government to support the development of cutting-edge tech companies, Wei said. Disruptive technologies attract more participation from private capital and market-driven investment institutions, which improves how efficiently funds are used.

"The CNY10 billion fund is expected to ultimately attract between CNY30 billion (USD4.2 billion) and CNY40 billion in total investment," Wei said.

The key challenge is identifying the right direction for fund investment is managers must be able to spot future trends before conventional institutions do. They will work closely with the sub-funds, which represent China’s top angel investors, to incubate projects at the earliest and most foundational stages, Wei added.

A key task for the Fund this year is to build a future community platform that brings together Shanghai-based talent, including investors, entrepreneurs, scientists, project leaders and executives, and helps them identify entrepreneurial directions, interests and collaborators, to foster an innovation ecosystem in the metropolis.

"The Fund aspires to become a platform for both China innovation and open innovation,” Wei said. “By linking talent, capital, industries and technology, this will cultivate Shanghai’s innovation ecosystem and help China lead in frontier fields from zero-to-one incubation, which refers to the development of groundbreaking ideas," he added.

The Shanghai Future-oriented Industries Fund was launched in September last year to nurture future industries and drive technological innovation. It is a CNY10 billion government-backed fund of funds that is entirely financed by the Shanghai municipal treasury. It aims to build a complete investment ecosystem from early-stage technological incubation to industrial integration through a government-guided and market-oriented model.

Editor: Kim Taylor