Announces Layoffs; 24-Year-Old CEO Joins List of Struggling Young Chinese Entrepreneurs



(Yicai Global) March 28 -- Once valued at USD200 million, financial problems at e-commerce platform have caused it to start laying off staff.

The shopping platform, built by Beijing Lipinshuo Technology Co. in September 2014, is an guide for gifts and shopping. The company received over USD33 million in investments between 2013 and 2015.

Wen Chenghui, the firm’s 24-year-old chief executive, issued an open letter through his WeChat public account to announce the layoffs. “It will continue for some time,” he said. The letter added that he would divest the business segments with no prospects, and emphasized that joining a startup is itself a gamble, as such companies can’t offer a stable working environment for their employees.

Born in 1993, Wen is what Chinese recognize as a ‘post-90s’ star entrepreneur, but he’s not the first to run into trouble. Last February, the karaoke app Yiqichang, founded by 21-year-old Yin Sang, said it was close to collapse after financial woes. In October, Wang Kaixin, who dropped out of high school to start her own business, shut down her company six months after receiving A-round financing. Many young entrepreneurs initially impressed China’s capital market, but crumbled when put through their paces.

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