Core Viewpoint - The article discusses the increasing trend of investors using litigation as a means to gain control over companies, highlighting a shift in the relationship dynamics between entrepreneurs and investors, where the latter are no longer satisfied with mere financial returns but seek to control the core assets and operations of the companies they invest in [4][22][45]. Group 1: Investor Strategies - Investors are increasingly turning to litigation to secure control over companies, especially in the context of rising competition and financial pressures in the venture capital industry [22][24]. - The traditional model of financial investment is being challenged, with investors seeking direct control over businesses to ensure stability and long-term value [22][27]. - The trend of using lawsuits to gain control is particularly evident in cases where the controlling shareholders face debt issues, as seen in the example of Jingjia Co., where a significant portion of shares was frozen due to legal disputes [16][22]. Group 2: Entrepreneurial Challenges - Entrepreneurs often find themselves in a precarious position, where the promises made during investment negotiations can turn into tools for investor control, leading to a loss of autonomy [11][18]. - The emotional toll on entrepreneurs is significant, as they view their companies as extensions of their personal vision and identity, making it difficult to accept investor-driven changes [37][45]. - The article illustrates that many entrepreneurs are caught in a dilemma where they must either accept stringent investment terms or risk losing their companies entirely [20][28]. Group 3: Legal and Operational Implications - The use of litigation as a strategy can lead to a "squeeze" effect, where multiple lawsuits can overwhelm a company, hindering its ability to operate normally [33][34]. - Legal disputes often arise from misalignments in expectations and communication failures between investors and entrepreneurs, leading to a breakdown of trust [41][45]. - The complexities of modern investment agreements, including performance guarantees and control clauses, can create significant challenges for both parties, often resulting in litigation as a last resort [14][40]. Group 4: Industry Trends - The venture capital industry is experiencing a fundraising crisis, with a significant drop in capital raised compared to previous years, prompting investors to seek alternative strategies for securing returns [22][23]. - Emerging industries, particularly those aligned with national development goals, are becoming prime targets for investor control, as they offer both strategic value and long-term growth potential [26][27]. - The shift from financial investor to operational controller reflects a broader trend in the industry, where investors are increasingly willing to take on the challenges of running businesses directly [27][28].