ByteDance has surprisingly cancelled the name of its proposed VC firm. Earlier, TikTok’s parent company had announced the launch of a new VC firm called ‘Jinqiu Venture Capital’. However, ByteDance has now said that they won’t be going on with ‘Jinqiu’ name.
People are now looking for the reason behind the sudden change in the name of the VC firm. The reason might be far from Beijing.
For a VC firm, the trust of the startups is extremely crucial. Without the trust, the best startups wouldn’t want to share their company with you. Whatever the size of investment might be.
Among the startup sector, the United States is still the best bet. At the time of announcement, the pandemic was still the hottest topic. The pandemic initially created hate, followed by a bigger support for the Asian community. At that time keeping the name ‘Jinqiu’ wasn’t just safe, but a brand masterstroke.
However, now with the Russia Ukraine crisis, there have been some developments. The West saw the attack through the Cold War lens. In such a situation, keeping the name ‘Jinqiu’, might not have been the best branding move a VC firm would have hoped for. Hence, the name change.
It will all be clear when the company announces the new name. The company has also said that it will readjust the investment proportion on the VC firm. Earlier, ByteDance had alleged $20 million to the firm.