Incentives attract investors to startups

New tax incentives for venture capital firms and angel investors are expected to encourage them to invest more, which will likely help boost the tech startup sector, said senior industry executives.

In April, the Ministry of Finance and the State Administration of Taxation announced certain benefits for venture capital firms and angel investors as well as individual investors.

Such investors or investment firms that pick up a stake in a tech startup at the seed stage or early stage, and stay invested for two or more years, would be eligible to deduct 70 percent of their startup investment from their taxable income.