How Do Startups in China Get Funding?


It is not easy for foreign entrepreneurs to startup businesses in China, especially when it comes to source funding. Apart from the traditional solutions such as bank loan, trade equity or venture capital, below I will provide several new ways to get your startup business funded in China:


1. Start A Crowdfunding Campaign Online

Crowdfunding is an attractive alternative to traditional funding. This newest source of funding can help entrepreneurs launch their companies without much capital investment. Here people make online pledges to your startup during a campaign for proof of concept, early idea validation and even customer pre-orders. With the right crowdfunding platform and ample promotion, a crowdfunding campaign has the potential to raise quite a lot of money in a very short amount of time.

2. Request A Government Grant

These are government funds allocated to support new technologies and important causes, such as education, medicine and social needs. While very complex in China, these grant programs may be able to help you finance the start-up and expansion of your business.
However, grants are typically very competitive because unlike loans, grants do not have to be repaid. Issues such as where to search for the government grants, how to create your business plan, how to assemble your documentation, need to be carefully dealt with. A good solution is to find a reliable local partner to help you navigate through. WTOIP may be a choice. Their China Business Starter Pack offers guidance in research and application on government funding.

3. Enter An Innovation Contest

Entering a startup competition can be a powerful experience for a startup. Winning comes with a lot of funding, the Amazon Web Services Start-Up Challenge provides annual rewards of $50,000 plus $50,000 in AWS credits to businesses each year. IPIEC Global (Intellectual Property Innovation & Entrepreneurship Contest) offers cash prize of $170,000, and $24,000,000 tech fundraising. But even if you didn’t win, you gained exposure for your business, connected with advisors and industry mentors, and received feedback. You won’t leave empty-handed.

4. Join A Startup Incubator (Innovation Center) or Accelerator

These organizations are very popular these days in China, and are often associated with major universities, community development organizations, or even large companies. Most provide free resources to startups, including office facilities and consulting, but many provide seed funding as well. Some big-name organizations even offer access to some of the Chinese brightest business minds. These aids may help to start your business in China.

Every way above has advantages and disadvantages, so they may not be the only choice for you to find funding for startup business. Starting a business is not an easy process and if you are interested in startup business in China, you can visit my blog for more.

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