China’s ‘Unicorn’ Creation Falls to Six-Year Low as Investors Play It Safe

People work at start-up incubator Soho3Q in Beijing, China, on Jan. 9, 2018. Ludovic Marin/AFP/Getty Images

HONG KONG—China’s rate of creating so-called unicorns—billion-dollar startup companies—has dropped to a six-year low as venture capital funds shy away from early-stage funding, while the economic effects of the CCP virus outbreak batter portfolio investments.

Only four Chinese startups have reached unicorn status as of May 13, the lowest number for the same period since 2014, according to data from PitchBook.