From seed funding to scale-up capital: Xiong'an bets big on startups

For startups struggling to secure their first investor, Xiong'an New Area is offering something extraordinarily rare: money before the market is convinced.

The fast-growing city in North China's Hebei province is rolling out an aggressive package of funding, financing services and industrial support, helping attract a wave of technology companies eager to turn ideas into businesses.

One beneficiary is Stable AI, whose vice-president Yu Fei recalls receiving crucial backing when the company had little more than research results and an early-stage vision.

"At that time, we only had preliminary theories and some research outcomes, yet we secured a 20 million yuan investment at a valuation of 300 million yuan," Yu said.

He described the funding as a turning point that allowed the company to move from concept development to commercial growth.

For many entrepreneurs, however, the appeal extends beyond financial support.

According to Yu, Xiong'an also provides access to real-world application scenarios and government-backed projects, helping startups test and deploy new technologies more quickly.

The city is actively building industry clusters designed to encourage collaboration among companies working in complementary fields.

Stable AI, which focuses on causal intelligence and large data models, is located next to Huaqing Zhiyan Technology, a company specializing in large language models. The proximity creates opportunities to jointly serve clients and participate in shared projects.

"These companies are not simply neighbors," Yu said. "They are potential partners and customers."

Much of this activity is centered around the Xiong'an Artificial Intelligence Industrial Park, which has attracted around 70 companies since opening in June last year. Roughly 80 percent of those firms relocated from Beijing.

The park offers funding support ranging from 5 million yuan to 100 million yuan for qualified enterprises, and organizes regular matchmaking events connecting startups with investment institutions and financing partners.

For Li Qiang, chairman of Huaqing Zhiyan Technology, the city's openness to innovation was a key factor behind the decision to establish the company's headquarters in Xiong'an in early 2025.

Within a single quarter, the company completed talent recruitment, office allocation and capital deployment in the new area.

Cui Hang, a manager at the industrial park, said lower operating costs, reduced labor expenses and proximity to Beijing continue to attract companies from the capital.

As Xiong'an accelerates efforts to build a technology-driven economy, local authorities are betting that a combination of early-stage funding, industrial resources and policy support can transform the city into one of northern China's leading innovation hubs.

For startups seeking both capital and growth opportunities, Xiong'an is increasingly positioning itself as a place where ideas can find funding long before they become proven businesses.