China O2O Unicorn valuation is too high will be a large number of Unicorn corpse


China O2O arms race began, venture capital valuation soared

Phoenix Technology News Beijing on December 9th news, Reuters published an article that Chinese O2O technology in the field of the emergence of a group of over $1 billion valuation of the "unicorn" companies, but these companies are overvalued, while revenues and profits have no guarantee of future entrepreneurs face death risk.

is the Reuters report below:

Unicorn growth, unicorn body will grow

Shequ001 is a start-up company, when the user through the phone from the supermarket shopping, Shequ001 can be responsible for delivery. The Shequ001 office is located in Beijing a nearly deserted corridor area, the accumulation of a lot of leaflets.

to March of this year, the number of Shequ001 employees has more than 2000, not long ago, about 400 employees on social networking sites to protest, requiring the company to pay the wages owed. Who declined to name the employee surnamed Zhang said, only 30 employees left, he was one of them. And it is such a business, its valuation has reached 2 billion yuan last year. The employee surnamed Zhang said: "we just want to seize the market, the way is to burn." He said he had not seen CEO since March.

is the most popular in the field of science and technology Chinese, startups like Shequ001 a lot, they attract mobile users to store and service, but many have failed, because they are overvalued deterrents, hampers the entry of new money. More companies are expected to die in the future, or to merge, executives and investors say the market has a bubble.

in Chinese, business potential market scale based on APP, according to the needs, depending on Logistics amounted to 10 trillion yuan, a huge market to attract VC and other investors to enter, they cast a lot of money to start-up companies, and these companies need to have cash, can run a APP can participate in the game.

VC data company CB Insights statistics show that China has 21 Unicorn enterprise, they are valued over $1 billion of private entrepreneurs. Now, for some companies do not make money, so the valuation is too high, the new funds began to flow.

some investors warned that the O2O industry has been a bubble, so, in part because of the company’s supporters continue to provide voluntary support money. Some people have been burning for the championship hundreds of millions, they are not willing to admit defeat, they were forced to participate in a war of attrition, hope to support enterprises will eventually be able to become the next Facebook or Alibaba.

(Qiming Venture Partners Shanghai Qiming Reyes (Gary Ries>) founder of cut

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