Shanghai government has released a new policy to compensate a certain percentage of actual losses suffered by the angel investors from seed investments in technology start-ups.

ANBOUND's research team, however, opines that the high-risk investment like angel investment is purely a market behavior and the success or failure of the investment depends on the investor’s strategic vision and objective market analysis, the investor’s ability to analyze the industry and capital operation of the investment.

Government should not promote the construction of the innovation center at the cost of market interventions as this will weaken the market’s ability to discover risk, resulting in market disruption.