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How VC-backed founders in China end up blacklisted

Ryan McMorrow, Wenjie Ding and Nian Liu

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Beijing | Chinese venture capitalists are hounding failed founders, pursuing personal assets and adding them to a national debtor blacklist when they fail to pay up, in moves that are throwing the country’s start-up funding ecosystem into crisis.

The hard-nosed tactics by risk capital providers have been facilitated by clauses known as redemption rights, included in nearly all the financing deals struck during China’s boom times.

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Financial Times

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    Original URL: https://www.afr.com/world/asia/how-vc-founders-in-china-end-up-blacklisted-20250106-p5l2ej