With 2.4 Billion Yuan Raised, Even Investment from Tencent and Alibaba—Why Do Those Projects Still Die?

Yesterday I read a news piece about how brutal entrepreneurship is: many projects that raised huge sums, that even had investment from Tencent or Alibaba—even Tencent's and Alibaba's own projects—have failed or been shut down. From my own experience, I have seen a great many failed projects over the years; several that once talked with us about cooperation or investment no longer even exist.

On the one hand I feel the hardship of entrepreneurship; on the other, I must ask: how should KangAi Commune's promise of a Century Commune actually be fulfilled?

Large-scale fundraising may help the team cash out, satisfy vanity, or achieve scale, but it cannot guarantee the realization of a Century Commune. The number of big projects that have failed is enormous.

Having resourceful shareholders help doesn't necessarily guarantee it either—otherwise Tencent's and Alibaba's own projects would not have failed.

So what can ensure the Commune reaches a century? I think it still has to return to the essence of the business, to the Commune itself.

Can it operate at low cost and deliver high-quality service?

Can it break even and generate its own cash flow?

Can it have reasonably complete rules?

Can it avoid major problems in risk control?

Can it be more transparent and win members' trust?

Can it really help people, or is it just short-term empty talk?

Does it have a wise understanding of the industry's future development and its regulation?

Can it stay rational amid frantic competition?

Can it resist temptation?

Is the team united, professional and steadfast enough?

When a project fails, the reason is usually to be found in itself, and in most cases the problem really is within. Mutual aid is a difficult undertaking, and I think both we in the early days and they today may have taken it too lightly. If instead of looking at short-term returns we take the long view and truly consider issues from the standpoint of the Century Commune goal, then there are things we need to hold on to and things we need to give up.