The startup frenzy in China is overwhelming. Even startups with very unconventional ideas can raise a reasonable amount of money from venture capital firms or other investment funds. Young entrepreneurs inspired by the billion dollar unicorns, are getting the attention of VC’s, who are pouring money into many tech and service startups that would usually be considered risky.
In the beginning of June, Smellme, a social network for pets, secured US$6 million in series A funding. According to SmellMe, the platform already has more than 5 million users sharing pictures of their beloved fur balls.
A week ago, Calling for a duck, a Beijing based startup, made it to the headlines on CCTV News. The main focus of their business is to simply deliver good quality Beijing Duck to their customer’s doorstep, illustrating how the internet is changing the food industry and how niche markets are becoming a target for entrepreneurs in China.
Another good example of how entrepreneurs are tapping into very specific niches is Dayima’s and Honeymate’s appearance on the female hygiene market. Dayima is a menstruation tracking app that sells monthly care packages and Honeymate is an online-only brand that offers quality sanitary pads for women. Dayima has recently raised US$30 million from Sequoia Capital and other investors, while Honeymate received RMB10 million in a pre-A funding round.
The industry might seem to be booming, but financial experts have been warning that the startup scene could turn into a massive bubble. But investors are relentless and don’t seem to be losing their appetite for new investments. The government also has high hopes and is committed to provide supportive financial measures for SME’s but on the other hand, they also offer free psychological counseling for entrepreneurs in case their startup fails.