Datang Telecom Technology & Industry Group's "369 cloud platform" has continuously attracted startups that avail of the firm's services.
The technological platform, which makes the group unique, allows developers to generate a preliminary mobile application within 20 seconds. This innovation gives the startups an avenue to monitor real-time traffic, user makeup and other services for free.
Yang Yong, vice president of the listed arm of the group, Datang Telecom Technology Co., said: "It's like playing lego. We offer lego and they provide creativity."
"Product development takes up to 75 percent of a startup's initial phase expenditure, so it's a huge saving for them," Yang further said.
Datang has also established a committee dedicated to vet applicants, both from outside or inside the firm. It also supplies part of the seed funding.
Akin to a venture capital firm, the committee allows Datang to have a stake in startups that can later be recovered when they are bought out or when they go public.
Currently, Datang also backs an app known as 635IME, which has around 80 million users. It was rolled out two years ago to link schools with parents. The app is supported by a program run by China's Ministry of Education.
Being supported by the ministry, the app receives the advantage similar to those apps that are backed by online firms such as Tencent Holdings Ltd.
Most of the startups are similar to the 365IME, which tap resources from the government.