Announced at a blockchain event in the city on Sunday, organized by the China Electronic Commerce Association, the fund aims to invest 500 million yuan ($ 80 million) in blockchain startups in Shenzhen during its first phase.
In particular, through a public-private partnership, 40 percent or $ 32 million of the fund will come from an angel fund that was launched at the end of March by the Shenzhen municipal government. The rest will be led by the private sector, according to a Sohu report.
The angel fund has a total of 5 billion yuan ($ 800 million) to invest in new businesses in the city, of which approximately 4% will go to local blockchain projects.
The daily operation of the new fund will be managed by two investment companies owned by the state, supervised by the city government commission that oversees all state assets, according to the report. In light of that, Liu Zhongpu, a local government official and a commissioner of the advisory commission of the Shenzhen government, will serve as the fund's adviser.
The news comes weeks after the Hangzhou government backed the launch of the Xiong'An Global Blockchain Innovation Fund, which has 1,600 million dollars to invest in innovative new companies, of which 30% will come from the city.