According to BlockBeats, Li Xi, a partner at LD Capital, shared on social media on June 22 that all of LD Capital's investments that have gone live on trading platforms this year are profitable on paper. However, these profits are only notional as the venture capital (VC) shares are still locked at zero.
Li Xi's comments highlight the challenges faced by most VCs, who end up being the 'big leeks' or the ones left holding the bag. He further noted that the primary market has become extremely difficult in this cycle.
It's important to note that the term 'big leeks' is a colloquial term in the Chinese investment community, referring to investors who end up buying at high prices and selling at low prices, often due to market manipulation or lack of knowledge.
Li Xi's statement reflects the volatile nature of the investment market, where profits are often not realized until investments are sold. This is particularly true for VC investments, which often involve long lock-up periods before shares can be sold.
Despite the challenges, LD Capital continues to actively participate in the market, demonstrating the firm's commitment to its investment strategy. However, the current market conditions underscore the need for investors to exercise caution and conduct thorough due diligence before making investment decisions.