- City officials moved quickly to turn a hit solo-living safety app into a local startup
- Founders say Hangzhou offered application scenarios and coordinated support rather than cheap office space
A new short-video series released by the Hangzhou city government is offering a rare behind-the-scenes look at how the Chinese tech hub courts high-growth startups.
The series, titled “Hangzhou Investment Stories” and published by local outlet Tidenews, details how Hangzhou officials persuaded a string of technology companies — including the creators of the viral “Are You Dead?” app — to establish operations in the city.
This rollout comes as competition intensifies among Chinese local governments for AI and digital economy investment.
One episode features Yao Jiali, director of the investment promotion service center in Hangzhou’s Shangcheng District, recounting how officials secured the team behind the app earlier this year.
An unsolicited email
The courtship began with an unsolicited email from Hangzhou officials.
When the creators of the “Are You Dead?” app — now rebranded as Demumu for the international market — began receiving overtures from local governments after the product climbed to the top of Apple’s China App Store charts earlier this year, one message from Hangzhou stood out.
Sent on January 29 by Shangcheng District’s data bureau, the email did not promise tax breaks or subsidized rent.
Instead, it proposed cooperation on elderly care and explored how the app’s technology could be integrated into public-service scenarios.
That approach helped convince founder Lyu Gongchen, 29, to base his startup in Hangzhou.
The app, known in Chinese as “死了么,” became an internet sensation in January 2026. Built in about a month with a reported development cost of less than 1,500 yuan ($221), it targets China’s growing population of people living alone.
Its core function is simple: users check in daily to confirm they are safe. If they fail to check in for two consecutive days, emergency contacts receive an alert email.
‘Empty nesters’
In the January 29 email, Shangcheng officials said the app’s design and service model aligned with the district’s efforts to support elderly residents living alone, and proposed discussions on collaboration and resource sharing.
According to the latest official data, Shangcheng has 258,300 residents aged 60 and above — meaning more than one in every four residents is a senior citizen.
Official statistics did not provide a breakdown between elderly people living with family members and “empty nesters,” or seniors living alone.
“I had already worked in Hangzhou before, so I already liked the city,” Lyu said in comments cited in earlier Chinese reports. “But when I received that email, I was still surprised. They not only explained what support they could provide, but also showed a deep understanding of the product and the market.”
After further talks with district officials, Lyu focused on practical questions including how the government could help identify deployment scenarios and coordinate with potential partners. He said the discussions provided satisfactory answers.
Competing for tech startups
On February 13, with coordination from multiple government departments in Shangcheng District, Lyu’s team formally incorporated the company entity behind the app, MoonRealm (月境未来), in Hangzhou.
The episode reflects a broader shift in how some Chinese cities compete for technology startups.
Rather than relying primarily on incentives such as tax rebates or discounted office space, some districts in Hangzhou are emphasizing market access, industrial coordination and faster administrative support.
“It’s different from some of our previous investment attraction approaches,” Yao said in the video. “For this project, what the founder cared more about was application scenarios and how Shangcheng could coordinate with the company.”
Yao said district officials moved quickly throughout the process, including arranging meetings with senior local leaders.
At one point, Shangcheng’s party secretary arrived at the office at 8 a.m. to meet Lyu, who had initially worried a proposed meeting at 8:20 a.m. “might be too early.”
‘Never a solo gig, but a chorus’
The day before the company formally registered, district officials and the startup team met despite heavy rain at the local data bureau to discuss business plans.
The next day, government agencies including market regulators and the data bureau gathered in a single office to complete all paperwork in a one-stop process.
“I think investment attraction is never a solo performance,” Yao, the Shangcheng official tasked with investment promotion service, said. “It has to be a chorus.”
Across China’s fast-moving tech landscape, cities are increasingly locked in competition to attract high-quality companies — a pursuit driven by the promise of tax revenue, job creation, economic upgrading, and the ability to anchor entire industrial ecosystems.
Hangzhou has emerged as one of China’s poster boys in attracting AI and digital economy companies, along with top talent, in recent years.
Post boy for AI courtship
According to media reports, Shangcheng District says it helped integrate Baidu Intelligent Cloud into a network of more than 100 supply-chain firms after the company established operations locally.
It also worked with ByteDance’s Volcano Engine business to develop real-world data annotation scenarios tied to tourism and urban governance, and supported AI startup Zhipu AI with financing and local resources after it spun out from a Tsinghua University laboratory.
Hangzhou rose to fame last year thanks to its business-friendly environment and policies, which are widely seen as central to the success of the so-called “Six Dragons.”
This refers to a cohort of high-growth deeptech startups spanning generative AI, robotics, brain-computer interface, spatial intelligence and gaming.
As a result, Hangzhou has earned a reputation for a business environment characterized by the slogan —the government does not interfere when unnecessary, but responds whenever needed.”
The city operates a digital platform allowing companies to submit requests directly to government departments, with officials claiming resolution rates above 99%.
The approach has helped Hangzhou earn a reputation among private firms as one of China’s most entrepreneur-friendly cities, giving it an edge in the race to woo the country’s next breakout technology company.