Shanghai is a powerhouse startup ecosystem offering startups unparalleled access to capital, international markets, advanced infrastructure, and strong government-backed innovation support.
Shanghai manages over 9,000 private equity and venture capital funds totaling more than $277 billion, accounting for about a quarter of China’s total. In 2024, Shanghai’s municipal government released a set of 20 measures for driving innovation, including a $4.1 million subsidy to set up open innovation centers and $4.1 million in startup funds for equipment purchases related to scientific and technology research.
Shanghai unveiled an ambitious blueprint to cultivate five future industries: Healthcare, Smart Devices, Energy, Aerospace, and Advanced Materials. To realize its target of achieving $71 billion in output by 2030, the city plans to establish a dedicated research institute, launch multiple technology-focused colleges, and create 15 innovation centers. The initiative also includes the construction of 70 hydrogen refueling stations and up to five new R&D platforms. Shanghai will place strategic emphasis on three priority sectors — low-carbon technologies, the metaverse, and smart devices—as engines for long-term growth.
Shanghai leads China’s pilot Free Trade Zones, promoting liberalized trade, cross-border capital flow, and foreign investment reforms. It plays a diplomatic and commercial bridge role, hosting events like the China International Import Expo and the World Artificial Intelligence Conference, enhancing global dealmaking and international visibility for local startups.
With its international schools, foreign chambers of commerce, and expat-friendly services, Shanghai is one of Asia’s most cosmopolitan cities. It attracts global entrepreneurial and research talent, making it easier for startups to build diverse, cross-border teams.
