Winter is coming, but will it be a “capital winter” or the winter of discontent for Chinese startups? China’s startup ecosystem has earned a reputation of fast rises and hard landings: during the last two years, sky-high funding rounds and valuations for less-than-ideal projects have made (over)saturation of companies and business models the new normal.

In April 2016, venture capitalist Kaifu Lee noted that a “capital winter” is just what the doctor ordered for China’s bloated tech industry. Since then, the market has been entering a slower and more rational phase.

“China’s startup industry has experienced both the so-called ‘capital bubble’ and ‘capital winter’ in the last year. However this year I see more pragmatic entrepreneurs who are getting better [in their] knowledge of entrepreneurship,” said Lee.

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Masha Borak

Masha Borak is a technology reporter based in Beijing. Write to her at masha.borak [at] technode.com. Pitches with the word "disruptive" will be ignored. Read a good book - learn some more adjectives.