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Jumei CEO Chen Ou: the winter of capital markets is the spring for entrepreneurs

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Madeleine Vogel
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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.

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Madeleine Vogel
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