Recently news came that Vancl just closed its F round fund raising with total investment amount of $230 million. Shocked and amused by the word “F round”, I even started worrying what if they use up alphabet for fund raising. A question came into my mind: Why are investors supporting them continuously? Are the E-Commerce Giants facing the same situation as banking corporations during Financial Tsunami: they are just too big to fail?

Despite the fact that large B2C companies already built their business model, how to sustain the growth rate and acquire enough market share remain in question. The pressure comes from the low inventory turnover ratio and high expense on marketing and logistics. Hence, e-commerce companies are in desperate need of cash because most of them are still struggling on the breakeven line or burning venture capital’s fund for daily operation. The capital market won’t give a smile in this winter either, and many Chinese internet companies postponed their IPO schedule due to the low valuation.

Several e-commerce companies already gave up facing the recession. The shut-down of online supermarket Dahuozhan(大货栈), the dispute of online luxury store Wooha and even the rumor of Vancl’s fund chain broken. all touched us with the chilly wind. Nevertheless, I have perfect confidence that giant e-commerce companies will survive until the day they go public. Why so? Ventures already bet a big amount of capital on them and will never let them fail.

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