A statistic on Internet entrepreneurship shows that as of July this year, the total number of startup companies that went out of business reached more than 2,000, more than 10% of the total number of startups. Among these startup companies, there are star companies that have invested over 100 million yuan, such as Peach.com, Bo-paid car, Youth Caijun, and Chefeng.com.
In the recent past, keywords such as "Founder's Run," "Financing Slowdown," and "Fracture of the Capital Chain" have gradually become the focus of discussions in the entrepreneurial circle. In the early years, the popular keywords in the business circle were “drinking coffeeâ€, “finding a projectâ€, “valuing several hundred million yuanâ€, “a round of financingâ€, and so on. To think of it, some startup companies had a valuation of equity financing from several million yuan to several hundred million yuan within a few years.
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“When the coffee in Zhongguancun is also cool,†sort out these failed startups. O2O, automobiles, and e-commerce are the hardest hit areas. Two days ago, the author happened to meet the CEO of a former startup company and listened to him about his own business story. His major is automatic control, and his work is in the technical field. His startup project is internet repair. I asked him why he chose an industry that he is not familiar with. He said that the family has a car repair shop, and they understand the inside doorway. The key is that the threshold of this industry is relatively low. But when he did the software and website, and shop promotion spread out, when he started looking for capital to continue investing, he discovered that opportunities in this area had been crowded with major companies.
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Reflecting on the road to entrepreneurial failure, the former entrepreneur said with emotion: “This failure has deeply deepened my understanding that so-called entrepreneurship must be preceded by 'industry' and then 'creation'. If we do a good job, it will be possible to add something to the Internet for innovation. It is impossible to create anything out of thin air.†He told the author that in the tide of Internet repair and entrepreneurial projects that have collapsed, one company has succeeded. This company was actually the most despised of them at first because the owner of the company came out of the garage alone and had little knowledge of the Internet. "It wasn't until recently that WeChat was not used." The reason why he can succeed is that his main business is doing well, and he has used the tide of the Internet to attract a large number of drab and fast drivers to become his clients. As customers continue to accumulate, the stores are opening more and more, and now they have embarked on the path of financing expansion.
In the past two years, under the call of the country's "mass entrepreneurship and innovation," many people have embarked on the road to entrepreneurship, triggered a wave of entrepreneurship, and promoted the fiery capital market. However, behind the hot market, some entrepreneurs are also concerned about the issue of hot-headedness and deviation. Many Internet companies first occupies users through low-cost or even subsidized methods, and expand insanely, and then use the market share to raise the next round of investment. Some entrepreneurs have just completed angel financing, they began to plan for further financing, and even began IPO (initial public offering) listing. Many start-ups do not have any real innovation, and there is no solid business support. "Walking on the watermelon rind, where is it?" is bound to fall.
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Earlier, the China New Zealand Office held a press conference regarding the closure of the Shenzhen "basement" incubator mentioned in the media report and the "cold coffee in Zhongguancun". According to the relevant person in charge of the National Development and Reform Commission, the high failure rate of start-up companies is a common phenomenon in the world. The current “double creation†has entered a new stage of rational development, self-improvement, and survival of the fittest. The next step will continue to improve the entrepreneurial and innovative policy system. In particular, we must establish a protection mechanism for the entrepreneurial losers so that entrepreneurs, employees, and investors can all withdraw in time and obtain new opportunities.
As the person in charge said, after the enthusiasm, it is a good thing that the entrepreneurial tide can return to rationality and nature. This allows many entrepreneurs to know through trial and error what kind of “industry†is really needed in this society and what they can do. To make this “industry†a good job and have a solid foundation, and then talk about innovation, we can break through the barriers to traditional development models and truly promote economic development. We can also share the dividends of successful entrepreneurship, not just a bubble of empty joy. .
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