> “It’s causing huge harm to the venture ecosystem because if a start-up fails, the founder is essentially facing asset seizures and spending restrictions,” said a Hangzhou-based lawyer who has represented several indebted entrepreneurs and asked not to be named. “They can never recover.”
> Lifeng, in its recent report on redemption rights, said they had turned entrepreneurship into a “game of unlimited liability”. In 90 per cent of investor lawsuits, the firm said, founders were named as defendants alongside companies, with 10 per cent of the individuals ultimately added to China’s debtor blacklist.
> Once blacklisted, it is nearly impossible for individuals to start another business. They are also blocked from a range of economic activities, such as taking planes or high-speed trains, staying in hotels or leaving China. **The country lacks a personal bankruptcy law**, making it extremely difficult for most to escape the debts.
Uhh yeah no thanks
flexible_spec_pool on
America continuing to benefit from its enemies being astoundingly inept
Nukem_extracrispy on
>One of China’s most famous entrepreneurs, Luo Yonghao, turned his struggle to repay debts from his failed smartphone start-up Smartisan into a spectacle, eventually hawking enough iPhones and office chairs in online video livestreams to pay off suppliers and remove his name from the debtor blacklist in 2020.
I’m actually about to get sued by my own shareholders pretty soon, but I don’t have to worry about being banned from bullet trains BECAUSE THE CALIFORNIA HSR WILL NEVER EXIST.
Creative_Hope_4690 on
Gigachad America where young dudes burn hundreds of millions of VC money on data centres for ten useless app. But being saved by the 1/20 unicorn startup.
4 Comments
> “It’s causing huge harm to the venture ecosystem because if a start-up fails, the founder is essentially facing asset seizures and spending restrictions,” said a Hangzhou-based lawyer who has represented several indebted entrepreneurs and asked not to be named. “They can never recover.”
> Lifeng, in its recent report on redemption rights, said they had turned entrepreneurship into a “game of unlimited liability”. In 90 per cent of investor lawsuits, the firm said, founders were named as defendants alongside companies, with 10 per cent of the individuals ultimately added to China’s debtor blacklist.
> Once blacklisted, it is nearly impossible for individuals to start another business. They are also blocked from a range of economic activities, such as taking planes or high-speed trains, staying in hotels or leaving China. **The country lacks a personal bankruptcy law**, making it extremely difficult for most to escape the debts.
Uhh yeah no thanks
America continuing to benefit from its enemies being astoundingly inept
>One of China’s most famous entrepreneurs, Luo Yonghao, turned his struggle to repay debts from his failed smartphone start-up Smartisan into a spectacle, eventually hawking enough iPhones and office chairs in online video livestreams to pay off suppliers and remove his name from the debtor blacklist in 2020.
https://preview.redd.it/og0hcayefhbe1.png?width=700&format=png&auto=webp&s=99ae9513529643dd95da401fa46fb555687f329d
I’m actually about to get sued by my own shareholders pretty soon, but I don’t have to worry about being banned from bullet trains BECAUSE THE CALIFORNIA HSR WILL NEVER EXIST.
Gigachad America where young dudes burn hundreds of millions of VC money on data centres for ten useless app. But being saved by the 1/20 unicorn startup.