China's Angel Investment Policy

Abstract

Purpose: This paper summarized and systematized the case of China's policies applied to attract angel investment which turned this country into a global highlight in angel investment. Theoretical framework: The authors conducted a literature review on start-up and angel investment to introduce angel investment in China, analyze the role of angel investments in developing start-ups, and factor determinants and policy of angel investment in China. Design/Methodology/Approach: This paper uses qualitative method to provide overviews on the case of China in attracting angel investment for their start-ups with an updated analysis on their relevant factor determinants and policies that contributed to the success of China. Findings: It is found that the Chinese Government has actively carried out packages, including tax incentives, built programs, investment cooperation funds, developed networks, and angel investment education systems to boost funding readiness for firms. They also focus on promoting the start-up ecosystem and providing financial support to implement an innovation-driven development strategy to raise the nation's competitiveness. Research, practical & social implications: This paper provides some suggestions for Chinese government in making policies to enhance the role of angel investments in developing start-ups. Originality/Value: This paper contributes to the evolvement of research about start- up and angel investment, particularly in China, in the context of high-tech production and breakthrough technologies, by providing a policy perspective to imply lessons for other countries.