Xiao Huang: DOORM, why are entrepreneurs who received venture capital funding back then now facing painful struggles with their investors?
DOORM: Entrepreneurs who received venture capital funding back then are now facing painful struggles with their investors mainly due to the current state of their projects and the shrinking exit channels for venture capital. One group of entrepreneurs has projects that are in trouble and unsustainable. When investors initiate redemption, these entrepreneurs are forced to use their personal savings and may even become defaulters. Another group of entrepreneurs is operating normally, but the venture funds that invested in them have matured, and investors are triggering priority exit clauses. This withdrawal of working capital can disrupt the normal operations of the company. This struggle reflects the difficult situation entrepreneurs face when dealing with tight cash flow and an unfavorable market environment.
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