Funding squeeze to deflate China's startup 'bubble,' says US incubator

Slower pace of venture capital will let smaller players emerge from shadow of giants like Ant Financial and Didi

20180911N Didi app

A driver in Beijing taps the Didi app. The ride-hailing company ranks as China's most valuable unicorn.

WATARU SUZUKI, Nikkei staff writer

BEIJING -- China's startup bubble, which has spawned a flurry of multibillion-dollar companies such as ride-hailing group Didi Chuxing, is at risk of bursting, a leading U.S. incubator has warned.

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