Chinese investors left in a lurch as cash-strapped startups flout deals

Chinese investors left in a lurch as cash-strapped startups flout deals

Photo by Kevin Lee/Bloomberg News

Private equity (PE) and venture capital (VC) investors in China, struggling to exit their investments amid a slump in the IPO market, are facing additional hurdles to recovering their capital as the founders of portfolio companies that fail to list on time renege on compensation deals.