Zhuhai creating a list of potential unicorn companies

Local and out-of-town companies striving to become unicorn enterprises will have help navigating the challenging path once included on the "hopeful list" being drafted by the Zhuhai government. 

The unicorn label is given to a pre-IPO company with at least a $1 billion market value and has received private-equity investment and venture capital (excluding listed companies on the New Third Board -- China's National Equities Exchange and Quotations (NEEQ)). Enterprises deemed to have potential to become unicorns are valued at more than $100 million with over $50 million in private-equity investment.

Zhuhai is assembling such hopefuls as worthy of government help. Candidates should engage in strategic emerging industries in accord with the city's future development direction. Businesses can range from new-generation information technology (including integrated circuits, big data, Internet of Things, cloud computing, and blockchains), artificial intelligence, intelligent equipment (including advanced equipment manufacturing), aviation and aerospace, new energy and new-energy vehicles, biomedicine and Big Health (including high-end medical apparatus), new materials, financial technology, cross-border e-commerce, new retail, modern logistics, and cultural and creative industries.

Mobile phone manufacturer Meizu Technology, a unicorn enterprise located in Tangjiawan [Photo courtesy WeChat account (ID:zszhuhai)]

Future unicorns still in seed stage are encouraged to join the city program, according to the Zhuhai Science, Technology, Industry & Information Technology Bureau. For a high-tech startup, mastery of cutting-edge core technologies or exceptional technological achievement is a must, plus high R&D input and ownership of Class I independent intellectual property rights that are key to the main business. Providers of Internet technology, big data, e-commerce, IOT, and cloud computing services must obtain venture investment within three years. Their main products and services should have broad market prospects and be able to lead a surge in market value in a short time.

Entrants are not limited to local businesses. Companies based elsewhere but have signed with local commerce authorities or district governments (administrative committees) to relocate to Zhuhai are also eligible for corresponding favorable policy treatment. It is also acceptable for the enterprises to just establish a headquarters, or an R&D or manufacturing base in the city.

Online registration runs until Aug 10 at http://ywgl.zhcz.gov.cn/egrantweb/. Application screening will be held then, to be followed by roadshows, Q&A sessions, and field inspections.

Applicants that are particularly promising and meet specified requirements can skip some steps of the selection process, according to an official.