"With a young, entrepreneurial, and highly innovative population, Shenzhen has grown to become a prominent technology hub, producing more than 30 unicorns. The epicenter of China's manufacturing, Shenzhen is stepping up efforts to become an international science and technology innovation center."
A global manufacturing hub, Shenzhen is sometimes referred to as the Silicon Valley of hardware. Many of China’s most valuable private companies, including Tencent and Huawei, operate there, as do nearly 300 overseas Fortune 500 enterprises. The metropolis is leveraging its manufacturing dominance to build a world-class innovation ecosystem. Shenzhen plans to invest more than ¥700 billion ($108 billion) in R&D over the next five years. The opening of the XPeng Motors’ Shenzhen R&D center signals the city’s intention to seriously compete in the electric vehicle industry.
The city is also focused on becoming an international VC center. Shenzhen offers a ¥5 million ($785,500) incentive to newly established or relocated private equity or VC firms that invest ¥400 million ($59.5 million) in unlisted companies within three years. Investors in seed or startup-stage technology companies receive 10% of the investment back after two years. The maximum rebate is ¥1 million ($149,000). Shenzhen was home to 4,308 registered private equity firms as of the end of 2021, the second highest total in China. 2022 has already seen several large deals including drone company MicroMultiCopter Aero Technology’s ¥300 million ($45 million) Series E, IT solution provider Uwintech’s ¥180 million ($27 million) Series C, and AI-powered drug discovery firm Artivila Therapeutics’ ¥100 million ($14.9 million) seed round.
Ecosystem by the Numbers
AI, Big Data & Analytics
Reasons to Move Your Startup to Shenzhen
Openness to Trade
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