How Coffee Shop Crowdfunding Is Fueling Startup Culture in China

In Lanzhou, a city far from China’s coastal tech hubs, aspiring entrepreneurs are finding an unlikely launchpad: a cozy café filled with books on startups, prototype drones, and the hum of conversation over coffee. For young founders with big ideas but limited resources, this is more than just a place to sip espresso—it’s a gateway to mentorship, funding, and a global network of innovators.

The answer lies in a unique crowdfunding model: around 80 people, mostly Peking University alumni in Gansu, each contributed roughly $7,200 (50,000 RMB) to open 1898 Café—not as a profit-driven venture, but as a collaborative hub for startup development. Since opening three months ago, it has already incubated seven or eight projects.

What Is the 1898 Café Model?

1898 Café, launched by a team led by Peking University alumni, is designed to attract entrepreneurs through a shared investment model. Each of the approximately 80 backers contributed around 50,000 RMB (approximately $7,200). The café, located in Lanzhou, is backed by the global Peking University alumni network, offering resources far beyond those typically available in inland China. Despite its physical location, it functions as a decentralized incubator with ties to similar cafés in Beijing, Chicago, and Silicon Valley, enabling resource sharing across borders.

Why Coffee as a Startup Incubator?

The café leverages the casual atmosphere of a coffee shop to foster organic networking and idea exchange. It’s intentionally designed not just as a caffeine stop but as a workspace where “a single desk and chair can represent a company.” Entrepreneurs, especially those with early-stage ideas, use the space to connect with experienced mentors, refine their concepts, and gain visibility. For students like Li Qin from Lanzhou University, who is developing drone flight control systems, the café provides a low-pressure environment to meet potential collaborators and investors.

How Does the Incubation Process Work?

The café’s founders, many of whom are successful entrepreneurs and academics, offer hands-on support. Founders can bring ideas, and the collective handles the rest: business registration, project refinement, and securing funding. The space also hosts a “rotating owner waiter” system, where café investors take turns serving customers—a deliberate strategy to increase interaction between veterans and newcomers. This setup allows entrepreneurs to tap into expertise on everything from legal setup to market strategy without navigating traditional bureaucratic hurdles alone.

The physical layout reinforces the mission: shelves display entrepreneurial literature and prototypes, such as model aircraft, to spark conversations. Li Qin, whose team is refining drone technology, noted that while their product is technically sound, they lacked a platform to gain market exposure—a gap the café helps fill by connecting them with potential supporters and advisors.

Frequently Asked Questions

How much did each person invest in 1898 Café?

Each of the approximately 80 backers contributed around 50,000 RMB (about $7,200) to fund the café’s establishment in Lanzhou.

What is the primary purpose of 1898 Café?

While it serves coffee, the café’s main goal is to act as a collaborative hub for entrepreneurs, offering mentorship, networking, and resources for startup development.

How many projects has 1898 Café incubated so far?

In just three months since opening, the café has already supported the development of seven or eight startup projects.

Where else are similar Peking University-backed cafés located?

Besides Lanzhou, there are similar cafés in Beijing, Chicago, and Silicon Valley, all part of a shared network that pools resources for entrepreneurs.

What kind of support do entrepreneurs receive at 1898 Café?

Entrepreneurs can access help with business registration, project refinement, funding connections, and mentorship from experienced businesspeople and academics.

How does the rotating waiter system work?

The café’s investor-owners take turns serving customers, fostering direct interaction between experienced entrepreneurs and newcomers to encourage knowledge sharing.