(Yicai) May 16 -- Lingang Special Area, a key testing ground for economic and trade policies within the Shanghai Free Trade Zone, will establish a new angel fund worth CNY500 million (USD69.5 million) aimed at startups, according to a new report.

Lingang's management committee will set up the Lingang Qihang Fund targeting startups, including those in the seed stage, The Paper learned at the 2025 Lingang Sci-Tech Innovation Conference today.

A seed-stage startup is a company that has completed initial development but has not yet achieved significant commercial success, which is different from a startup that has developed a product or service and is starting market testing.

In addition, the committee will invest around CNY200 million a year in innovative pilot projects and research and development initiatives. This so-called new grant-to-invest model transforms fiscal funding from traditional grant methods into equity investment, supporting early- and growth-stage tech firms in carrying out research and development and commercializing their achievements.

Lingang will collaborate with banks, insurers, and guarantee institutions to form dedicated financial resources for technology innovation exceeding CNY5 billion (USD690 million), the report said. Various banks in the area will launch a range of tech innovation loan products and increase lending support for startups in the tech sector.

Lingang has promoted technological and industrial innovation integration and achieved initial results after six years of constant effort, noted Yang Zhengwei, executive deputy director of the area's management committee.

Lingang's industrial output reached CNY423 billion (USD58.7 billion) last year, with high-tech industries accounting for over 70 percent, Yang said. Industrial fixed asset investment dominated by high-tech industries exceeded CNY40 billion (USD5.55 billion) for three straight years, making up more than 20 percent of Shanghai's total, he added.

Editor: Martin Kadiev