Summary:
Zhejiang province leads in venture capital funding for 2024.
41 new corporate venture capital funds registered last year.
Government support through tax incentives and financing boosts innovation.
DeepSeek and Game Science are notable startups emerging from the region.
AI and robotics are key focus areas for investment in Zhejiang.
Zhejiang Province: The New Frontier for Venture Capital
China’s eastern Zhejiang province has become the largest recipient of venture capital funding in 2024, marking a significant shift towards becoming a hub for advanced technologies such as artificial intelligence (AI) and robotics.
According to data from the CYZone Research Centre, 41 new corporate venture capital funds were registered in the province last year, the highest among 18 mainland provinces. This surge in investment reflects Zhejiang's transformation from an e-commerce hub to a technology haven for entrepreneurs.
Government Support and Innovation
The province, particularly its capital Hangzhou, has successfully fostered innovation through favorable government policies that include tax incentives, industrial estate development, and financing. This progress is noteworthy despite China's lackluster economy.
People watch a television report on Chinese artificial intelligence start-up DeepSeek at the Seoul Railway Station in South Korea’s capital on February 17, 2025. Photo: AP
Spotlight on Emerging Startups
Notable startups like DeepSeek, which has gained global attention with its advanced open-source AI models like V3 and R1, are driving this trend. These models have been developed at a fraction of the cost and computing power typically required for such projects, showcasing the innovation potential in Zhejiang's tech landscape.
The success of Game Science with its hit game Black Myth: Wukong also illustrates the growing appetite for video gaming in the region, further solidifying Zhejiang's position as a leader in the tech industry.
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