Is Shanghai a Good Place to Launch a Startup?

Where you start your company still matters – but sticking too closely to one location might limit what you’re able to build. In today’s startup landscape, geography shapes your path – but it doesn’t have to define your potential.

Shanghai has emerged as a strong hub for entrepreneurship, offering access to funding, talent, and infrastructure. But with growing competition, rigid local programmes, and support often reserved for the most polished startups, relying solely on what’s nearby can slow you down – or hold you back.

In this article, we’ll explore what Shanghai gets right – and where founders often run into friction. We’ll also show how EWOR offers an alternative: a global, remote-first platform that gives you access to funding, mentorship, and community – no matter where you’re based.

1. Access to Funding in Shanghai

Funding is one of the most critical ingredients in building a successful startup – and Shanghai offers a growing ecosystem of support. From venture capital firms to government grants and angel investors, founders in this region have several pathways to raise capital and gain early traction.

Shanghai's early-stage funding scene is dynamic, supported by a mix of local and international VC firms like Qiming Venture Partners, PingAn Ventures, and Lightspeed China Partners, alongside active angel investors such as James Haft and Geoffrey Handley. The government also plays a significant role, offering grants and subsidies, including initiatives in areas like Zhangjiang Science City providing up to 1 million yuan for young entrepreneurs in key industries and social insurance subsidies for early-stage ventures. Despite this support, challenges persist, including intense competition and the need for more patient capital for "0-to-1" technological transformations, a gap the new Shanghai Engine Fund aims to address. While overall VC funding remains substantial, navigating the complex landscape and securing seed-stage investment can still be difficult for some founders.

A More Flexible Path Forward

In the wake of these challenges, founders don’t have to rely solely on local funding options. EWOR offers a more flexible path – providing up to €500,000 in early-stage capital But EWOR is more than a cheque. Our capital comes bundled with personalised support, investor-ready storytelling, and access to a network of over 400 active European investors – many of whom regularly participate in our Grand Pitch events. On average, EWOR fellows who complete the programme and pitch go on to raise €2 million in follow-on funding – over 10x more than founders from comparable European initiatives.

2. Innovation and Startup Culture  

Shanghai has become a centre of innovation, with numerous tech hubs, coworking spaces, and accelerators that foster creativity and new ideas. The local startup culture is vibrant, with a growing community of entrepreneurs working together to push the boundaries of what’s possible.

Shanghai boasts a vibrant and rapidly growing startup and innovation culture, positioning itself as a leading hub in China and globally. The city has a strong presence of coworking spaces, offering networking opportunities and essential amenities for entrepreneurs. Numerous tech events, forums, and competitions are held regularly, attracting local and international talent, investors, and industry experts. Entrepreneurial activity is high, with a significant number of startups being established, particularly in sectors like technology, biomedicine, and advanced manufacturing. While there are large-scale competitions and standardized programs, there is also a focus on supporting early-stage founders through incubators, accelerators, mentorship, and government initiatives offering subsidies, free workspace, and tailored services. The ecosystem appears to offer a mix of competitive platforms and personalized support to nurture startups from their initial stages.

For many entrepreneurs, the energy and resources available in Shanghai can provide the ideal environment to test new ideas and gain early traction. The collaborative atmosphere allows founders to connect with fellow innovators and build networks that can help their startups grow.

While the local startup culture is vibrant, the support founders actually receive can be hit or miss. VCs might offer funding but little time. Angel investors often give advice, but it’s scattered and inconsistent. What’s more, many accelerators rely on a one-size-fits-all model that doesn’t reflect the needs of exceptional founders. In fast-moving, competitive ecosystems like Shanghai, standing out is hard enough – getting the right kind of support shouldn’t be.

The Alternative to Cookie-Cutter Programmes

Finding a programme that truly adapts to your journey, not the other way around, is rare. However, EWOR offers the kind of depth and flexibility that many local programmes simply can’t match. Instead of following a fixed curriculum, our fellowships are modular and tailored – giving you the right support at the right time, based on where you are in your journey.

But the real strength of EWOR goes beyond structure. Fellows often describe the community as the most unexpected – and valuable – part of the experience. As some have put it: “The real magic lies in the community: the kind of conversations, insights, and connections that lead not only to breakthroughs – but to lasting friendships with some of the most fascinating people they’ve ever met”.

3. Talent and Workforce Availability

One of the greatest assets of launching a startup in Shanghai is access to a skilled and diverse talent pool. With universities producing top-tier graduates in technology, business, and other fields, startups can tap into a wealth of expertise to help grow their teams.

Shanghai has a large and growing talent pool, including a significant number of highly educated professionals and returning Chinese graduates from overseas. The city is home to numerous prestigious universities that contribute to this pool, with specialized programs in areas like biomedicine, AI, fintech, and advanced manufacturing. Shanghai actively fosters industry-specific skills through targeted initiatives in key sectors such as integrated circuits, AI, and biomedicine. Local talent supports entrepreneurial growth by providing a skilled workforce and contributing to a vibrant innovation ecosystem with incubators and support programs. The city's environment encourages innovation and provides resources for startups.

Like funding, competition for talent can be fierce, especially for highly specialised roles in fields like software development or AI. For startups looking to scale quickly, hiring the right people at the right time can be a challenge, leading some founders to look outside the region for remote talent solutions.

Get Global While Local

While hiring locally in Shanghai can be competitive and slow, EWOR gives you instant access to a global network of exceptional talent. Built by founders for founders, the EWOR team has launched and exited companies worth over €12 billion – and they bring that experience directly into your venture. It's not just about funding or surface-level advice; it's akin to having a co-founder from day one. 

The team collaborates closely with you to refine your idea, challenge your thinking, and support you through real-world decisions – just like a hands-on partner would. Moreover, with EWOR’s exclusive co-founder pool, you can find the right person to build with, regardless of their location.

4. Infrastructure and Support Systems

Shanghai boasts a strong infrastructure that supports the growth of new businesses. From modern office spaces to high-speed internet, entrepreneurs have access to everything they need to run their startups smoothly. Government policies may also provide tax breaks, legal support, and other incentives that make starting a business more attractive in this region.

Shanghai offers a robust environment for startups, featuring extensive infrastructure like co-working spaces, incubators, and accelerators such as those in Zhangjiang Science City and Shanghai Silicon Alley. These provide essential services, mentorship, and networking opportunities. The city is a leading financial hub with strong financial infrastructure and diverse funding options, including venture capital and government funding. Government initiatives play a significant role. Shanghai has launched measures to attract venture capital, support early-stage tech investments, and provide guaranteed loans for startups in key industries. Recent policies in districts like Qingpu offer R&D subsidies, office space support, and housing assistance to attract talent and foster growth. The government also supports tech zones and aims to develop future industries through establishing research institutes and innovation centers. These combined resources help startups thrive by providing funding, physical space, expert guidance, and a supportive ecosystem.

But what looks good on paper often proves more complicated in practice. Bureaucracy can be time-consuming and opaque, especially for first-time founders unfamiliar with local laws. Incorporation takes longer than expected. Accessing public funding often means navigating slow processes, strict requirements, or hard-to-reach advisors. And operational costs – from accounting to regulatory compliance – can quickly eat into early budgets. 

A System That Moves With You

With access to expert guidance, practical legal resources, and a network of experienced entrepreneurs who’ve built across a range of regulatory systems, EWOR is well positioned to help founders navigate the bureaucratic and legal complexities that often come with building in Shanghai. Instead of wasting time figuring things out alone, you’ll have the tools and support to stay focused on what matters most – growing your venture.

And while we’re remote-first, our support is anything but distant. Through in-person gatherings like the EWOR House, city-based meetups, and our twice-yearly Grand Pitch event, you’ll still build meaningful relationships with investors, peers, and mentors. It’s a system that helps you focus on building – not just dealing with paperwork.

Can Shanghai Be Considered the Best Place to Launch a Startup?

There’s no doubt that Shanghai provides a vibrant environment for startups, with access to funding, innovation, talent, and infrastructure that can help entrepreneurs build successful businesses. For many, it’s a strong contender for the best place to launch a startup, thanks to its growing entrepreneurial ecosystem and support systems.

Entrepreneurs launching startups in Shanghai face significant challenges. Competition is intense across various sectors, requiring strong differentiation. The city's high cost of living and operating expenses can strain resources and make attracting talent difficult. Navigating the complex regulatory landscape and ensuring compliance with evolving policies, including data security and foreign investment rules, also presents hurdles. Additionally, cultural and language barriers can pose difficulties for foreign entrepreneurs.

However, it’s important to remember that the location of a startup is no longer the be-all and end-all. In today’s digital age, location-independent options like EWOR allow entrepreneurs to access world-class mentorship, funding, and resources from anywhere in the world. Whether you’re based in Shanghai or elsewhere, EWOR’s remote programmes are designed to support founders no matter where they are located.

So, while Shanghai offers significant advantages, it’s worth considering options like EWOR that enable you to launch and scale your startup with global support – whether you’re in the heart of a bustling startup hub or working from a quiet corner of the world.

Image credits: by Andreas Brücker on Unsplash