This China Economic Review paper analyzes the 'Dual Mandate' of Government Guidance Funds. It finds that GVCs are willing to accept lower financial returns (IRR) in exchange for higher 'Social Returns' (employment, patenting). However, it warns of 'Crowding Out' if GVCs compete directly with private VCs for hot deals. The optimal model is 'Co-Investment', where the government acts as a passive LP to signal trust, while private GPs make the investment decisions to ensure commercial viability.

Government money has strings, but they are different strings. This archive helps founders negotiate with state-backed funds. It suggests emphasizing your 'Social Utility' (hiring, R&D) in the pitch to align with their political mandate. It validates GVC as a stable source of capital that is less sensitive to market cycles.