Hangzhou’s Internet Dream Town Where Startup Companies are Born

Hangzhou’s Internet Dream Town Where Startup Companies are Born

(Source: cctv, china.org)

A startup company is one which is set up with an idea, begun as a tiny for-profit enterprise and is intent on it becoming big enough to be renowned over the world, but is barely generating revenues, has limited employees, and remains resolutely in control of its founder.

Hangzhou is home to the Internet giant Alibaba and it is encouraging more startups by creating a full industry chain and ecosystem in a base called the Internet Dream Town. The town, which covers an area of three square kilometers, has grown up to be a world-level internet venture base. Since its operation on March 28, 2015, Dream Town has attracted more than 500 venture projects with fund raised reaching 1.47 billion yuan.

Internet Dream Town (Credit: gxec.net.cn)Fig: Dream Town (Credit: gxec.net.cn)

Wang Chunkai, the art director of an Internet company, shares his enthusiasm for art with many fans online. People can ask him to draw cartoon portraits by sending him photos through a smartphone app. Like Wang, over 300,000 freelancers offer various services in this online community. Thanks to the popularity of mobile devices and mobile payment, the company behind Kongge app has expanded rapidly in just one year. From just 12 people at the start, it now has more than 200 employees. Its capital is worth 100 million yuan today. The company’s founder, Tang Yongbo, credits this to support from the Internet Dream Town, a base for internet startups.

“You can start your company with just a good idea here. There is a thorough industry chain and eco-system here,” said Tang. The Internet Dream Town is located in a suburb of Hangzhou. Its ambition is to create the next internet giant Alibaba, which is only 3 kilometers away. More than 600 Internet-based startups have been set up here within a year.

Internet companies are sprouting up in the dream town since it was launched. It has become the place for Internet startups and has attracted many talents, capitals to help ideas grow into businesses.

Dream Town (Credit: gxec.net.cn)Fig: Dream Town (Credit: gxec.net.cn)

Experts think it is not enough to just gather young people with ideas. Social capital and supporting facilities are equally important. The town invites the most famous and professional incubators across the world to choose projects, and organizes meetings with investors for startups at different stages.

Another factor that helps in the rapid growth of startup companies is the finance. The rules for financing e-commerce are different than traditional service industry. Usually the borrowing terms are very flexible and do not have too many fixed assets, which are required by traditional bank loans.

As China upgrades its economic structure and growth model, Nepal too needs to look up to the northern neighbor and learn the basics for a tech-savvy nation with untapped potential. There are more than a few startup companies operating in the country, and this number would be more if there would be a similar trend for support of these companies here.

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