To put it vividly, if every region is to perform a "symphony" of investment and investment promotion themed "capital boosting industrial development", the local government is the composer, VC institutions and industrial parks are the musicians, enterprises are the movements (large and small), and the local guidance fund may well be the conductor on the stage. The conductor needs to wholeheartedly understand the composer's ideas and emotions, fully grasp the characteristics of different musical instruments and the skills of musicians, and also determine the performance speed, rhythm, expression form, and so on. This analogy may not be perfectly accurate, as the situation varies from region to region; meanwhile, a conductor is not absolutely necessary—with the music score and musicians, the performance can still start.

Based on our work experience, observations, insights, and feelings, this article aims to discuss some working methods and ideas under the goal of guidance funds "needing both to invest" and "needing both to attract investment", for communication and discussion with friends in the industry.

First of all, we need to understand the similarities and differences between investment and investment promotion. Both involve investing resources in excellent enterprises and gaining benefits through the growth of these enterprises. However, they differ in the resources invested, the dimensions of participation in enterprise operations, the exit methods and profit dimensions, and thus have different criteria for judging excellent enterprises.

Secondly, we need to identify the many connection points between investment and investment promotion. Attracting leading enterprises to cultivate the ecological chain of upstream and downstream industries is conducive to the clustered development of enterprises and drives investment opportunities in the industrial chain; investment promotion provides better on-site services, which helps enterprises grow and expand, thereby increasing investment returns; investment enriches the methods of investment promotion and improves the success rate of investment promotion and project landing... Therefore, the two perform their respective duties, cooperate with each other, and are intertwined—each contains elements of the other.

Finally, we need to correctly handle the relationship between investment and investment promotion. On the one hand, we should not confuse the two, replacing investment promotion with investment or blurring the line between them, treating investment institutions as a "second investment promotion bureau", and putting unreasonable demands on sub-funds. On the other hand, we should not separate investment from investment promotion, hold resistance towards each other, or act independently. Instead, we should comply with the inherent nature of each while conducting full communication and cooperation.

In the operation of guidance funds, we need to align with the local industrial planning and investment promotion policies. According to different goals such as "strengthening advantages" and "making up for weaknesses", we should distinguish between the goals of investment promotion and investment, conduct industrial, categorical, and hierarchical management of sub-fund managers, and even further refine the assessment mechanisms in the two dimensions of investment and investment promotion. This will fully leverage the advantages and initiative of different managers, and ultimately integrate investment and investment promotion organically.

As guidance funds play an increasingly important role in the development of local industries and economic growth, the requirements for the capabilities of guidance fund managers and their teams are also rising accordingly.

From the perspective of investment, the guidance fund team can divide work according to different industrial sectors. By leveraging the platform's resource and information advantages, they should engage more in the investment circles of the corresponding industries, conduct more research on companies in these industries, carry out in-depth industrial research, and master full-industry-chain knowledge such as the development stage of the industry, future development direction, market pattern, investment and financing status, and capital market policies. Only by possessing a certain degree of professionalism in the industry and being able to communicate on the same wavelength with excellent investors can they generate a "chemical reaction" with sub-fund managers and find suitable partners.

From the perspective of investment promotion, the guidance fund team and the local investment promotion department are "comrades-in-arms" on the same side. They should strengthen communication with specific districts, counties, streets, and industrial parks, gain a clear understanding of the actual situation and specific needs, and deeply grasp the local industrial status quo, industrial planning, and investment promotion policies. Even if they cannot be as familiar with the specific industrial layout, planning, and enterprises in the industrial chain as professional investment promotion personnel, they should at least grasp the key characteristics, strengths, and weaknesses of the industrial ecosystem. Only in this way can they guide the investment promotion direction of sub-fund managers and connect investment promotion opportunities in a targeted manner.

Guidance funds usually stand between local governments and VC institutions. Especially in the operation of FoFs, they are neither directly responsible for investment promotion and project landing nor directly responsible for investing in enterprises. However, we believe that only by having both industrial investment thinking and an understanding of the logic of industrial investment promotion can they coordinate and connect both sides effectively, transmit information efficiently, and mobilize resources.

Market-oriented VC institutions are the closest partners of guidance funds. Guidance funds can provide part of the capital for VC institutions, and VC institutions can also take on appropriate local investment return and investment promotion targets. Is this just an ideal state, while the reality may be that both sides look down on each other? Some market-oriented institutions may still think that raising funds from guidance funds is just a "stopgap measure" and want to maintain their independence as much as possible; some guidance funds may consider themselves "financial backers", waiting for sub-funds to deliver satisfactory results after providing funds, and occasionally issuing various demands.

In fact, a state of close cooperation must come from mutual efforts. Some VC institutions that proactively adapt to trends have begun to evolve, including regionalizing their operations and establishing "industrial empowerment departments"; guidance funds have also become more market-oriented, such as relaxing requirements on registered locations and lowering local investment return targets. However, we believe that in order to attract excellent institutions, select suitable partners, and maintain long-term cooperation with them, guidance funds should first clarify their positioning—other specific measures will then follow naturally.

Guidance funds should position themselves as the frontline for local governments to serve VC institutions. First, they should understand various VC institutions, grasp their operation models, styles, and demands, listen to their suggestions, and respect their ideas; help VC institutions become familiar with the local industrial status quo, development planning, support policies, and local culture; provide relevant information and resource support during the investment period and management (exit) period; coordinate the attraction of key enterprises in the industrial chain in line with investment plans for industries to be cultivated; and formulate assessment mechanisms that conform to the actual operation models of VC institutions based on local investment and investment promotion goals... By well serving those VC institutions that share consistent goals and interests with us, we can achieve our own goals and interests once their goals and interests are fulfilled.

Returning to the "movement" of investment and investment promotion that we are to perform investment promotion that we are to perform. As the "conductor", guidance funds should break down the overall blueprint according to dimensions such as different industries, investments at different stages, and tools for investment and investment promotion. Based on their understanding of industries, investment, and local conditions, as well as their knowledge of various VC institutions, they should select the right entities to undertake corresponding tasks VC institutions, they should select the right entities to undertake corresponding tasks, and then provide services and support to them in the process to achieve more sustainable cooperation.

It is hoped that the above views can provide a perspective and help friends from guidance funds and the VC industry conduct more discussions towards common goals. Of course, the author is also well aware that guidance funds in different regions or at different levels (provincial, municipal, district, street-level, etc.) have different operation methods and work priorities. All of them need to compose and perform a "symphony" of investment and investment promotion with local characteristics.