China’s Silicon Valley throws money at tech start-ups as government takes over

More than 600 start-ups have sprung up on a street in China’s Silicon Valley in the last 12 months, as Beijing bids to turn its key technology hub into a start-up hotbed.

Over 350 have received funding to scale up their businesses within a year of the government taking over Inno Way, a street in the capital’s Zhongguancun Science Park, according to the industrial park’s website. 

Zhongguancun is home to a raft of established Chinese technology companies, from PC maker Lenovo to search engine operator Baidu and leading smartphone maker Xiaomi. It is close to Peking University, China's top institute of higher learning. 

Start-ups in the park are not faring too badly either, with average investment on Inno Way standing at 5 million yuan (US$805,000), park authorities said. 

Before it was earmarked by the government, the 200-metre-long street was full of bookstores and small restaurants. It now plays home to over 4,000 start-ups and is crowded with funding and training institutions, as well as cafes that also serve as incubators. 

Start-ups that originated on the street have attracted a total investment of 1.75 billion yuan so far, according to the local government.