China’s startup ecosystem starts showing some cracks
Priya Wadhwa
10X Industry

China’s startup ecosystem starts showing some cracks

Asia's biggest economy slowing down?

Nowadays, startup news covers many trends in the market, including the hot new topic: electric scooters. Through startups like Lime and Bird, cities were filled with the electric scooters that seemingly came out of nowhere, and transported people for a low price to places nearby. However, in 2017, China saw a similar phenomenon take the country by storm: bike sharing.

Similar to the electric scooters, people could rent the bikes for a certain period of time, and then drop the bike off at a different location, only to be charged for the time that they actually rented the bike. However, due to the oversupply of bikes and bike-sharing companies, 2018 saw the death of many of these startups, eventually leading to so-called ‘bike graveyards’ where the bikes found their final place.

However, according to Crunchbase, the bike-sharing startups are not the only ones that are facing a tough time in China – there is evidence of the entire Chinese startup ecosystem slowing down. In its recent Crunchbase News report on the Chinese startup venture capital market, Crunchbase showed a slowdown in the second half of last year, with the fourth quarter posting the country’s lowest reported venture dollar figure in 2018. Learn more about the Chinese startup ecosystem here.