For startups struggling to secure their first investor, Xiong'an New Area in North China's Hebei province is offering something extraordinarily rare: money before the market is convinced.

The fast-growing area is rolling out an aggressive package of funding, financing services and industrial support, helping attract a wave of technology companies eager to turn ideas into businesses.

One beneficiary is Stable AI, whose vice-president Yu Fei recalls receiving crucial backing when the company had little more than research results and an early-stage vision.

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"At that time, we only had preliminary theories and some research findings, yet we secured a 20 million yuan ($2.94 million) investment at a valuation of 300 million yuan," Yu said.

He described the funding as a turning point that allowed the company to move from concept development to commercial growth.

For many entrepreneurs, however, the appeal extends beyond financial support.

According to Yu, Xiong'an also provides access to real-world application scenarios and government-backed projects, helping startups test and deploy new technologies more quickly.

The area is actively building industry clusters designed to encourage collaboration among companies working in complementary fields.

Stable AI, which focuses on causal intelligence and large data models, is located next to Huaqing Zhiyan Technology, a company specializing in large language models. This proximity creates opportunities to jointly serve clients and participate in shared projects.

"These companies are not simply neighbors," Yu said. "They are potential partners and customers."

Much of this activity is centered around the Xiong'an Artificial Intelligence Industrial Park, which has attracted around 70 companies since opening in June 2025. Roughly 80 percent of those firms relocated from Beijing.

The park offers funding support ranging from 5 million yuan to 100 million yuan for qualified enterprises, and organizes regular matchmaking events connecting startups with investment institutions and financing partners.

For Li Qiang, founder and chairman of Huaqing Zhiyan Technology, the city's openness to innovation was a key factor behind the decision to establish the company's headquarters in Xiong'an in early 2025.

He believes the city's long-term growth potential outweighs the fact that many industries are still in their formative stages.

Within a single quarter, the company completed talent recruitment, office allocation and capital deployment in the new area.

The company's products and services are designed to enable deep integration between the capabilities of AI large models and a wide array of industrial scenarios.

Cui Hang, a manager at Xiong'an Artificial Intelligence Industrial Park, said lower costs, reduced labor expenses and proximity to Beijing continue to attract companies from the capital.

In addition, as more technology firms establish operations in the city and several universities prepare to expand into the area, interest among students and young professionals is growing, he said.

The industrial park fosters an industrial ecosystem where enterprises can find their upstream and downstream partners within the same compound. At the technical level, there are firms specializing in data services and large model development, while the application level hosts enterprises delivering concrete solutions for sectors including transportation and more.

"Via our platform, we can connect enterprises with scenario providers to facilitate precise matching. We also host capital matchmaking events. In addition, winners of our competitions are eligible for a two-year rent exemption for office space," Cui added.

With generous living subsidies, affordable housing and a carefully planned urban environment, the city is luring a growing number of young entrepreneurs.

Among them is 27-year-old doctoral student Zhang Zequn, who leads research and development at AnYing Technology, the company behind what it describes as the world's first portable non-invasive cerebral hemorrhage detection analyzer. For Zhang, the decision to settle in Xiong'an was straightforward.

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The local government provides doctoral degree holders with a monthly subsidy of 3,000 yuan for five consecutive years, an amount he says largely covers daily living expenses. "In Xiong'an, that subsidy is enough to pay for housing and food, with money left over," Zhang said. Rental costs remain significantly lower than in nearby Beijing. According to Zhang, an 80-square-meter apartment typically rents for between 1,600 and 1,700 yuan per month.

The talent support program also offers monthly subsidies of 1,000 yuan for bachelor's degree holders and 2,000 yuan for those with master's degrees.

Zhang's daily commute is just over one kilometer on foot, with green parks lining both sides of the road. He also praised the city's"15-minute living circle", an urban planning concept that ensures essential services and amenities are within a short walk or bike ride.

The abundance of green spaces and clean air has become a distinctive feature of the rapidly developing city.

Contact the writers at chenmeiling@chinadaily.com.cn