Financial Support for Talents in Innovation and Entrepreneurship: Empowering Uni

As a company oriented towards scientific and technological research and development in the field of hydrogen production and utilization, funding is extremely important for us and is the core link in the company's development, including the recent application for some research topics and projects, all of which require financial support.

Ren Yahui, Chairman of Hengtong (Shanghai) New Energy Technology Co., Ltd., said that not long ago, the company just completed a credit loan, "This loan was operated through mobile phones, without any collateral and was credited instantly."

"Our company has just been approved for a dry eye treatment device under a cutting-edge technology path, but with multiple products being approved and certified one after another, the company will carry out more medical promotion work for the products in the future, which will require a certain amount of funding for assistance."

Hu Hai Di, Chairman and CEO of Jimufeng Rui (Shanghai) Biotechnology Co., Ltd., said, "With the investment of institutions, we can push the product to the market in parallel without pausing progress."

Advertisement

At the fourth "Hai Ju Yingcai" Global Innovation and Entrepreneurship Summit - Financial Support for Talent Innovation and Entrepreneurship Conference held on the afternoon of the 20th, the two representatives of the above-mentioned scientific and innovative enterprises and several financial institution personnel discussed new methods and new paths for financial support for talent innovation and entrepreneurship, as well as the next steps.

In addition to the financial support for corporate loans and investments, the two representatives of the scientific and innovative enterprises unanimously believe that how to retain talent within scientific and innovative enterprises is always a major challenge that needs to be faced.

At the same time, a certain amount of financial support is also needed in the process of the product gradually "going overseas."

Ren Yahui said that for some highly educated and highly skilled engineers in the team, the company is considering giving them some equity, "But as employees, engineers have limited personal payment ability, so it is necessary for companies and financial institutions to design suitable equity incentive plans together, allowing employees to participate in the form of 'equity loans', and we are exploring the implementation of this plan."

Hu Hai Di said that patient capital not only helps the company to operate steadily but also helps the company to retain internal talent further; but in addition to funds, retaining internal talent actually needs to consider more about the convenience of talents in daily life, the subsequent development in the industry, and benefits such as children's education and housing subsidies.

To this end, Xu Jun of Standard Chartered Bank (China) said that in the development stage of going from domestic to international, the demands of companies are actually more diversified and need to be responded to quickly.

Xu Jun cited an example that a domestic company previously landed a power project in Tanzania, "The cross-border guarantee required for cooperation (from the initial bidding to the final performance), the confirmation of the guarantee terms one by one, and the credit with the local recognized cooperative banks all need to be completed one by one by us and the company."

"Securities firms have a different perspective on this."

Zhu Dongchen, co-general manager of the Investment Banking Department of Guotai Junan Securities Co., Ltd., said that the advantage of securities firms lies in deep cultivation of industries, "On the one hand, we can use Guotai Junan's overseas subsidiaries to find some excellent local industrial partners that can match the company.

On the other hand, based on our own advantages, we can also give the company some choices in the fields of bulk commodity services and foreign exchange hedging, swap transactions, etc., to help the company avoid some risks caused by product/raw material price fluctuations, foreign exchange price fluctuations, etc."

The support dimension of insurance funds lies in risk control.

"Insurance, as an effective mechanism for diversifying risks, is also promoting innovation and entrepreneurship."

Wang Qian, deputy general manager of the Shanghai Technology Branch of China People's Property Insurance Co., Ltd., said that while start-up companies are growing rapidly, they are also accompanied by high R&D risks, market risks, and legal risks.

Insurance can not only give companies a certain economic compensation after losses occur but also provide some risk control reports in advance and give companies some prevention suggestions.

In addition, insurance can also play a role in financing and credit enhancement, helping start-up, light-asset scientific and innovative companies to obtain lower-cost financing.

How can finance provide full life cycle support for scientific and innovative companies?

Xu Zhengrong, assistant secretary-general of the Shanghai Financial Industry Federation and director of the Special Committee Work Department, said that from a technology in universities to the final transformation and the formation of a scaled and influential company, every stage of development needs to consider financial empowerment.

Xu Zhengrong suggested that first, for newly established and starting scientific and innovative companies, they are at a stage that needs the government, industry, and institutions to work together, because the overall team size of the company is relatively small, and most companies are in the stage of drilling R&D and opening up the upstream and downstream industrial chains.

At this stage, companies need the relevant parties to sort out and integrate policy information and financial information in an orderly manner, giving companies a clear path, reducing the company's time cost, thereby improving the efficiency of docking with industrial policies and financial services, and the introduction of the Shanghai inclusive finance consultant system has played an important role in helping this type of company to find the right person, point the right way, and do the right thing.

Secondly, from the perspective of the full life cycle development of scientific and innovative companies, financial elements such as investment institutions, commercial banks, financial leasing companies, and securities firms will play different roles, but these elements need to have strong synergy on the one hand.

Originally, each institution was more operating in its own industry field in a single line, but in the future, the cooperation between institutions will transform towards a more flexible, "multi-disciplinary consultation" model and mechanism.

"Once again, financial institutions need to continuously iterate on digital tools to empower more new track scientific and innovative companies.

For example, financial institutions will include some non-financial factors such as the structure, background, and experience of the founding team, and whether they have been favored by investment institutions into the credit product analysis model, and these indicators will be more in line with the growth characteristics of scientific and innovative companies at this stage."

Xu Zhengrong said.