Sean Huang, founder and CEO of Morfus, a tech startup authentically from Vancouver, the city where the young man spent most of his life time before 29, is sitting right in front of me, talking about his idea of registering a 100% local company in Hangzhou to expand the business of the 2-year-old Canadian company.
Why Hangzhou? 为什么在杭州？
Besides the cliché such as because of China is now the second largest economy entity in the world with the biggest market globally (where else in this country doesn’t? ), the right way of answering the question raised by a foreign company like Morfus should be: what Hangzhou is capable of to attract overseas entrepreneurs?
Keeping in mind the question, Sean and Albert, founding members of Morfus, visited the Management Committee of Zhejiang Hangzhou Future Sci-Tech City (Below: the Committee) yesterday.
Take Morfus as an example, as a foreign startup tries to enter the Chinese market, it can receive dozens of incentives and subsidies in many ways, including rent reimbursement, settling-in allowance, individual incentives, and investment to the company.
The Zhejiang Hangzhou Future Sci-Tech City (Below: FST City) has been establishing itself as an entrepreneurial powerhouse for 7 years since 2011. Hangzhou was named most active city for expats, according to the China Career Globalization List released by LinkedIn in March 2017, revealed the fact that the relative inflow of talents from abroad to Hangzhou ranks the first among all Chinese cities, topping those of Beijing, Shanghai, Guangzhou and Shenzhen.
Imaging a startup like Morfus, with three co-founders all graduated from top universities in Canada (CEO Sean and CTO Avetis: University of British Columbia, CMO Albert: British Columbia Institute of Technologies), naturally qualified themselves with the incentive policies issued by the local government department, according to the different levels of certification of talents from overseas.
想象一下，像Morfus这样的初创企业，三位创始团队成员都毕业于加拿大顶尖大学（CEO黄尚柏和CTO Avetis Muradyan：英属哥伦比亚大学；CMO陈艾伟：英属哥伦比亚理工学院），天然满足未来科技城针对不同类型海归的奖励政策。
I am writing down those policies for everyone's reference.
1. The Reimbursements of Equipments and R&D Expenditure: 设备和研发补贴
Within a consecutive 3-year period, reimbursement percentages of physical equipments and Research & Development expenditure are 20% and 30% respectively, 6 million RMB at most. The applications of reimbursements are open to public twice a year, in January and July.
2. The Reimbursement of Rent: 办公租金补贴
Within a consecutive 3-year period, the reimbursement of rent varies upon the different nature of properties: the rent of government-owned properties can be reimbursed over 60% of the rent; the rent of office space in privately held and commercial buildings such as EFC can receive subsidies up to 0.8 yuan/m2/day.
All the reimbursements is implemented on a pay-first-then-reimburse basis.
3. The Settling-in Allowance for team members: 海归“安家费”
This policy is executed in line with the ARWU (Academic Ranking of World Universities) originally complied and issued by Shanghai Jiao Tong University in 2003, which made it the first global university ranking with multifarious indicators.
Both current year’s undergraduates, postgraduates, and PhD graduates employed by the company registered in the jurisdiction of FST City can receive a sum of settling-in allowance of 40k, 50k and 60k RMB. For those who graduated from the C9 League, the allowance increased to 60k, 80k RMB for Maters and PhDs.
4. Subsidies of Residential House Expenditure 海归住房补贴
Overseas talents will be ranked from Level A to Level F for subsidies, under the guidance of relevant policies issued by the City of Hangzhou and Yuhang District.
Meanwhile, talents can also benefit from the policy issued by the Committee, without conflicting with the above policies. It offers free usage of Talent Apartments in a consecutive 3-year period at 150, 120 and 60 square meters, subjected to the ranking of talents of Level A, B and C in the jurisdiction of FST City.
5. The Dream Fund, Chuying Project & Qinglan Project 梦想基金、雏鹰计划和青蓝计划
Different funds are applicable at each stage of a company registered in the jurisdiction of FST City.
Dream fund: early-stage startups are qualified to receive investments from the Dream Fund with 800k and 1.5 million respectively, according to the certification of different types of company by the Science Development Department of the Committee. The Dream Fund promises to exit at Series A in most cases, without or merely limited equity premium.
Chuying Project & Qinglan Project:
A sum of incentives ranges from 400k to 800k RMB will be paid to the qualified startups.
Excited reading these? And what’s more?
6. The IP and Patent Service Platform 知识产权管理服务平台
A startup like Morfus which owns and registered IP and patent in Canada has the demand to assign the patent to the company registered in Hangzhou. The IP and Patent Service Platform allows them to easily apply and check (free of charge) on the platform while receiving rewards with 20k RMB for the IP patent and 2k for each Utility Model Patent.
I will not be surprised if you are packing your bags after reading my article.
Welcome to Hangzhou Future Sci-Tech City. You can find me in EFC！
Add：24F-25F，T5(US Center),EFC,Future Sci-Tech City，HangZhou 311100，China.
Tel：+86 5718981 2826