Is Shenzhen 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.

Shenzhen 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 Shenzhen 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 Shenzhen

Funding is one of the most critical ingredients in building a successful startup – and Shenzhen 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.

Shenzhen's early-stage funding environment is dynamic, supported by both venture capital and government initiatives. Notable VC firms active in the area include Shenzhen Capital Group, a prominent government-backed firm, and others like Fortune Venture Capital and Green Pine Capital Partners. The local government actively encourages startups with various grants and subsidies, such as funding up to 1 million yuan for eligible entrepreneurship projects and incentives for newly registered financial enterprises. However, challenges persist, including intense competition and a noted funding gap at later stages, particularly for hardware startups transitioning from prototyping to mass production. While early-stage funding has seen growth, the broader trend in China has shown a cooling phase in VC investment with a significant year-on-year decline in total VC investment and the number of deals in 2024. Despite this, Shenzhen continues to attract investment, especially in sectors like AI and healthcare tech.

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  

Shenzhen 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.

Shenzhen boasts a dynamic startup and innovation culture, often dubbed China's Silicon Valley. It has a high entrepreneurial density, supported by favorable government policies, tax incentives, and funding initiatives. The city is rich in coworking spaces and incubators, providing resources and networking opportunities. Numerous tech events and conferences are held regularly, fostering a collaborative environment. While there are competitive programs and accelerators, there is also support for early-stage founders through various funding avenues and mentorship, though the ecosystem is also attractive for more mature startups seeking manufacturing and market access. Government initiatives aim to attract global talent and provide support packages, including funding and subsidies, for projects across various high-tech fields.

For many entrepreneurs, the energy and resources available in Shenzhen 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 Shenzhen, 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 Shenzhen 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.

Shenzhen has a competitive and diverse talent pool crucial for startups. The city is home to numerous educational institutions, including Shenzhen University and Southern University of Science and Technology, which contribute to a skilled workforce. Shenzhen attracts talent with expertise in key industries like IT, electronics manufacturing, biotech, fintech, and logistics. The proximity to manufacturing facilitates rapid prototyping and innovation. The local talent supports entrepreneurial growth through a culture of innovation, access to a vast manufacturing network, and a dynamic environment enriched by professionals from various industries. Government policies and financial incentives further attract and retain skilled individuals and startup teams.

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 Shenzhen 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

Shenzhen 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.

Shenzhen offers a robust ecosystem for startups, featuring extensive infrastructure like numerous incubators, accelerators, coworking spaces, and innovation labs. These resources provide crucial support, including funding, mentorship, and access to networks. The city's proximity to manufacturing bases facilitates rapid prototyping and production. Government initiatives play a significant role, offering financial support such as startup funds, subsidies, and loan incentives. Policies include tax incentives, R&D subsidies, and rent-free office space for eligible startups. Shenzhen also focuses on attracting talent and developing key industries like AI and Fintech through targeted support and infrastructure development. This comprehensive support system helps businesses thrive in Shenzhen's dynamic environment.

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 Shenzhen. 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 Shenzhen Be Considered the Best Place to Launch a Startup?

There’s no doubt that Shenzhen 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 Shenzhen face significant challenges. Competition is intense due to the city's status as a major tech and innovation hub, attracting numerous domestic and international players. While often considered more affordable than cities like Shanghai or Hong Kong, the cost of living, particularly housing, can still be high, impacting operational costs and talent retention. Regulatory issues, including navigating legal compliance, data regulations, and the complexities of establishing a legal entity, can also pose hurdles for new businesses.

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 Shenzhen or elsewhere, EWOR’s remote programmes are designed to support founders no matter where they are located.

So, while Shenzhen 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