Winter is approaching Chinese start up companies facing market recession

where to find the next money in the second quarter of this year, China’s Internet industry VC/PE financing scale decreased by half, indicating that the future will be very difficult. At present, the biggest risk is that thousands of people have been fighting against the cost of the user and is reluctant to consider the profitability of the company.

in September 4th, a group of China angels on a rainy night in a space gathered in the Beijing science and technology of the temple. There, some start-ups are lobbying for investors, who are from Beijing and Shanghai, are part of a fast-growing entrepreneurial force, the scene to listen to more than and 100 people. But the last night at the end of the finale debut changed to investors to entrepreneurs to put forward some advice.

One of the most important things

can’t afford to ignore is trying to raise all the money you can get, because the market is changing the direction of the wind.

search James Tan managing partner of venture capital in Chengdu and Beijing both in angel investment, his speech entitled "winter is coming". He said that in the past year and a half, 25% of China’s start-up companies to finance. The A shares plummeted and widespread concern about the economic situation Chinese situation, investment growth is not only difficult to continue, the situation may also be reversed. He said: we told ourselves to invest in the company as soon as possible to find the next financing."

indeed, from the investment in China and the twenty-first Century economic report data show that in the second quarter of this year, the Internet industry VC/PE financing scale fell by half, fell to $3 billion 700 million.

is currently the biggest risk is that thousands of companies have been fighting against the cost of the user and has been reluctant to consider the profitability of the company. Many of them are from the government and the support of the three giant BAT O2O field, belonging to food delivery and education industry more than a dozen.

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" to the winter atmosphere means that these burn company no hope to launch a new round of financing. For example, according to the "twenty-first Century economic report" said that the end of August, a sale of fruits and vegetables and other agricultural products of the China startups to lay off 1500 people, it has been unable to refinance.

from a global point of view, large and small startups are able to escape the risk. Silicon Valley veteran investor Bill Gurley has just warned that the growth cycle is more important than earnings will end. Earlier this week, Fortune magazine reported that the U.S. West Coast venture community is increasingly concerned about the "dying unicorns"".

in China, startups feel a similar signal.