Notable Chinese Startup Failures | Generated by AI
Question: List more spectacular failures in Chinese startups in the last 15 years.
Answer:
Here are additional notable spectacular failures of Chinese startups from the past 15 years (2010–2025), building on examples like Ofo, Lashou (a major player in the early 2010s group-buying wars that faded after intense competition), and others. These often involved massive funding, rapid expansion via subsidies, and eventual collapse due to unsustainability, fraud, overcompetition, or external pressures:
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LeEco/LeSports (founded ~2004, major issues 2016–2017): Ambitious ecosystem spanning smartphones, TVs, EVs, and sports streaming; raised billions but overexpanded aggressively, leading to cash crunch, debt defaults, and partial shutdowns. Founder Jia Yueting fled to the US amid creditor pursuits.
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Dakele (smartphone maker, ~2010s): Positioned as a budget high-spec alternative; raised funding but failed to adapt in a saturated market, suspending operations around 2016.
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eXiche (on-demand car wash, ~2014–2015): One of many heavily funded O2O car wash startups in a subsidy-fueled niche boom; burned cash rapidly in competition, with multiple (including eXiche as a standout) closing in 2015–2016.
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Fanli (cashback/e-commerce, peaked ~2010s): Early unicorn in rebates and deals; grew massively but struggled with profitability and competition, leading to decline.
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Huochebang and Yunmanman (truck logistics, merged 2017): Intense rivalry in freight matching led to huge losses; merged into Manbang Group (Full Truck Alliance), but pre-merger phase saw near-collapse risks from cash burn.
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Various P2P lending platforms (e.g., Ezubao, ~2014–2016): Hundreds in the P2P boom turned bust; Ezubao was a massive Ponzi scheme defrauding billions, leading to arrests and sector-wide crackdown shutting thousands by 2020.
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Nio early struggles (EV, founded 2014): Nearly bankrupt in 2019–2020 despite unicorn status, saved by bailouts; highlights EV sector volatility.
These reinforce patterns: subsidy wars eroding margins, copycat models in crowded sectors (e.g., O2O services, group buying), fraud scandals, and later impacts from funding winters, regulations, and economic slowdowns reducing new failures but stalling growth.
References:
- https://www.cbinsights.com/research/biggest-startup-failures/
- https://technode.com/2017/01/06/heres-what-you-can-learn-from-chinas-biggest-startup-failures-of-2016/
- https://ventureburn.com/2015/11/20-startups-from-asia-that-failed-in-2015-and-lessons-learned/
- https://www.chinamoneynetwork.com/2020/12/04/chinas-startup-death-toll-2020-nearly-1000-failed-projects
- https://www.statista.com/statistics/1169388/the-most-expensive-startup-failures-by-amount-of-funding/