From China Daily:
Chinese venture-backed online video firms, which were on the edge of making profits, are now under risks of bankruptcy with the spreading US financial crisis, said a report in Monday’s Economic Observer newspaper.
US venture capital firms (VCs) are in retreat from the Chinese market due to the financial crisis, and have withdrawn funds from many of the video sites.
Last year, there was $300 million from VCs poured into the Chinese online video market, and an astonishing $100 million flooded in during a single week this April. The second largest Chinese online video website, Tudou.com, alone absorbed $57 million from VCs this April, while the largest, Youku.com, announced it had raised $40 million from VC investors at the end of June.