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As VC firms turn prudent, shakeout hurts O2O startups

By Bloomberg In Hong Kong ( China Daily ) Updated: 2016-01-18 08:22:08

Kungfu Bear had its day.

Wang Run founded the startup in Beijing just over a year ago to let people order inexpensive massages through a smartphone app. As venture capital money flooded into China, the company raised cash to draw customers and acquire rivals. Its valuation topped $15 million.

Now the good times are over for Kungfu Bear and many of China's once-hot startups. After pouring more than $30 billion into the country in 2015, venture firms switched off the easy money, concerned there's too much competition.

As VC firms turn prudent, shakeout hurts O2O startups

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