“Everyone wants to revive existing assets, but no one is willing to admit losses first” - 36Kr

A closed-door VC roundtable in Nanjing discussed how China’s startup-investment market is being reshaped after Policy 54, with tighter rules on state-backed capital, disclosure, and compliance.

Industry participants said the old model of relying on abundant capital and rising valuations is fading; firms now must rethink fundraising, investing, exit paths, and liability allocation.

Key pressure points include state-owned mother funds, S funds, M&A exits, and how to handle legacy assets under stricter regulatory expectations.

The shift could directly affect liquidity, fundraising, and the survival of professional VC firms as the market moves toward more disciplined and accountable capital deployment.