Since 2015, 92 companies globally have raised capital or were sold at a lower valuation in major transactions, in what venture circles call down rounds or down exits, according to data tracker CB Insights.
There are quite a few Chinese companies on that list. Here, we list some of the biggest down rounds that would have cost investors – especially late investors – dearly.
Wandoujia, a Beijing-based Android mobile app distribution platform, was sold to Alibaba Group Holding Ltd. during the summer, reportedly for around US$200 million.
The price is a fraction of the US$1 billion valuation at the time of Wandoujia's last financing round back in 2014. The down exit is made more unfortunate if you consider that Alibaba wanted to buy the company at US$1.5 billion two years ago.
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