The Internet economy used to be the outlet of China's venture capital, attracting countless entrepreneurs and capital, compared to emerging industries such as new energy vehicles. However, in recent years, the development of the Internet economy has encountered a bottleneck, and the performance and profits of many Internet giants have declined, while Wall Street capital has gradually lost interest and confidence in China's Internet entrepreneurship, and has withdrawn its investment, resulting in the rapid cooling of the Internet economy.
China's Internet economy has experienced 20 years of rapid development, from the portals around 2000, such as Sina, NetEase, Sohu, etc., to the rise of BAT (, Alibaba, Tencent) in 2010, and then to the emerging ByteDance, Meituan, etc., the growth of these Internet companies is inseparable from the support and promotion of Wall Street capital.
China has a huge population and market, which gives Internet companies unlimited imagination, and many Internet companies aim to go public in the United States as soon as possible, and then through high valuations and high premiums, to achieve cash out and exit, and create huge wealth for founders and investors. For example, the founder cashed out 19.5 billion through listing in a year and a half, and the founder of Mobike cashed out nearly 20 billion through ** in two or three years.
Of course, Internet entrepreneurship is not all smooth sailing, there are successes and failures, some entrepreneurs do not exit in time at the critical moment, they encounter market changes and crises, resulting in the collapse of enterprises, the founders are in high debt, and even go to prison. For example, although the shared apartment brand Danke was listed in more than a year and reached a market value of 3 billion US dollars, due to the impact of the epidemic, it finally fell into the dilemma of broken capital chain, and the founder**, landlords and tenants were also in trouble.
Behind the Internet entrepreneurship, is the vigorous investment of Wall Street capital, before they go public, they do not hesitate to invest a huge amount of money, so that enterprises to subsidize users, in order to obtain more traffic and data, they hope to go public, recoup the investment and get returns, however, this model is not sustainable in China, because China's Internet market is fiercely competitive, the needs and preferences of users are constantly changing, many Internet companies can not achieve profitability, or even unable to go public, so that Wall Street capital is in a predicament, can only retreat helplessly, and the entrepreneurial dividend period of the Internet economy will disappear, and even those Internet companies that have become giants have also been affected.
Under the logic of this capital-driven flow, traffic-driven users, and user-driven platforms, once the capital is missing, the flow will decrease, the users will be lost, and the platform will collapse, which proves that the capital game of the United States will not work in China, China as a large country with a population of 1.4 billion, manufacturing, agriculture and various types of production are the foundation of the economy, the Internet is just a tool, not a purpose, and the model of using capital to quickly form a monopoly will not succeed in China.