Rhea LiuChen Ou, CEO of Jumei.com, disagreed with the opinion that a winter for entrepreneurs is coming and expressed confidence in entrepreneurship at a forum held by venture capital fund Zhen Fund last Thursday, reported Sina Tech.Chen Ou, 31 years old, was once featured in Forbes magazine as a promising CEO.
He founded Jumei.com, an e-commerce platform known for selling cosmetics and makeup.
Jumei.com debuted on the Nasdaq last May at USD 22 per share.
Xu Xiaoping, one of Jumei s angel investors said profits have increased 800 percent in 4 years.Following the downturn of the Chinese stock market in August, investors have become more wary of investing in once popular Internet businesses.
Some critics have warned of a so-called winter for entrepreneurs approaching because many startups have since crumbled with the break in the capital chain.Chen Ou, however, holds a different opinion.
High valuations are always accompanied by protective provisions.Protective provisions might not hinder a company when it is able to maintain financial stability, but will likely harm a company if it faces the prospect of a great decrease in valuation or possible acquisition.