The Big Picture

Chinese startups feel the chill of capital winter as VC activities slow

  • China
  • 6 min read
  • Apr 01, 2020
  • By Wang Xiao'e

Image: Shutterstock

The goods news is investors still have plenty of money. They just become more cautious when making investment decisions

The coronavirus (Covid-19) outbreak has hit China's startups hard, but they were already contending with a decline in funding long before this blow landed.
In the latter half of 2015, articles about China's capital winter began to appear in the media. Back then, China's food delivery giant Meituan slashed its valuation from a lofty $15bn to around $10bn in two months. The social commerce startup Mogujie reduced its valuation to $1.6bn from $2bn, as the renowned private equity firm Carlyle Group withdrew from the negotiations for its Series E funding. 
Many startup founders were worr...

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Edited by John Gee

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