Impact of Shrinking Exit Channels for Venture Capital

Xiao Huang: DOORM, what are the impacts of shrinking exit channels for venture capital on entrepreneurs and investors?

DOORM: The shrinking exit channels for venture capital have significant impacts on both entrepreneurs and investors. For entrepreneurs, it means they find it difficult to achieve financing through IPOs or acquisitions, leading to tight cash flow and even the risk of bankruptcy. For investors, the shrinking exit channels mean they cannot realize their returns within the expected timeframe, resulting in long-term capital lock-in and affecting their investment returns and liquidity. This situation not only intensifies the struggle between entrepreneurs and investors but also negatively impacts the entire entrepreneurial ecosystem.