An industrial park in Hangzhou, China, which specializes in blockchain will begin offering large, multi-million dollar subsidies to blockchain startups establishing themselves in the park. This comes as part of a push to attract more blockchain and cryptocurrency competence to the area. Moreover, it would also seem to be a part of the more overarching theme of China showing an increasing amount of interest in the blockchain and cryptocurrency, despite its previous ban on ICOs and related activity.
The blockchain enterprise park is mainly funded and run by the Xiong’An Fund. The Xiong’An Fund also published a policy guide this Thursday on their official WeChat account, outlining the details of the new subsidies being offered. The Xiong’An Fund is valued at around $1 billion and has previously been hailed as a major push into establishing a blockchain enterprise park. The city government of Hangzhou also played an important part in making the project a reality, since the city is supporting the blockchain incubation park with 30% of its funding.
The new subsidies are not set in stone, and the policy guide is set to be revised – however, it currently allows for a resettlement allowance for highly qualified blockchain developers and other blockchain-related skills of up to nearly half a million dollars. Furthermore, there are four different categories of subsidies available, meaning that many different types of corporations and individuals can apply. For example, early stage starts can receive up to $230,000 as a housing-related allowance, as well as a further $1 million in funding for R&D. Startups that have progressed beyond their early stages can receive $480,000 in housing-related subsidies and approximately $780,000 in funding linked to research and development.
Nonetheless, the policy guidelines are not entirely clear, and there is no real insight into the evaluation process or criteria used by the industrial park in order to evaluate potential businesses and companies that apply for the subsidies. An official from the industrial park has divulged that they are aiming to establish clearer definitions and eligibility criteria by this summer – however, it is currently unclear exactly what businesses are eligible. Even so, the subsidy project can go a long way towards attracting both talented individuals and startups to the Hangzhou park. Gather a sizable number of blockchain-oriented ventures in close proximity to each other could potentially bring sizable advantages and synergies to the firms. Moreover, it allows for beneficial spillover effects and more mobility for blockchain developers.
Image Source: “Flickr”
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.