As Shen noted, all you need is a laptop and a great idea to make it big in Dream Town.

Funding is also essential, but that has already been addressed. "We have a place for investment companies here," Zhao, of Hangzhou Future Sci-Tech City, said about the center.

"Investors drop by two or three times a day to see whether there are valuable ideas that are worth investing in. This process works very well."

Eventually, Dream Town hopes to attract 10,000 college graduates to set up startups.

"The plan is to have 2,000 projects, which will attract more than 300 venture capital funds and 300 billion yuan of investment," Zhao said.

In addition to funding provided by venture capital firms and angel investors, the provincial government rolled out the 50 million yuan Zhejiang Angel Dream Foundation in May to support startups.

But then, online users in Hangzhou have always been tech-savvy.

Ying Zhongdi, manager of media app Toutiao.com in Zhejiang, revealed the city's Internet users closely follow tech startups. Figures released by Toutiao.com showed that 17.69 percent of online customers there read about startup related topics. Shanghai came next on 16.34 percent.

"It seems that Internet startups are simply part of Hangzhou's DNA," Ying said. "It is ingrained in society, especially the younger generation."