Core Insights - The current financing landscape is characterized by a chaotic environment where genuine investors are often misled by fake projects, while good projects are exploited by fraudulent investors [3][4][7] - There is a significant misalignment of expectations between project founders and investors, leading to a cycle of distrust and missed opportunities [3][4][10] - The structural issue of information asymmetry complicates the matching process between quality projects and legitimate investors, resulting in a low success rate for funding [10][11] Group 1: Misalignment of Expectations - Investors often avoid projects during tough times, citing high risks, but rush to invest once profitability is demonstrated, leading to frustration among project founders [3][4] - This "drought and flood" logic creates a deadlock where both parties question each other's motives and sincerity [3][4] Group 2: Trust Crisis - A dual defensive posture has emerged in the financing ecosystem, where genuine investors are inundated with numerous exaggerated project proposals, most of which lack viability [4][7] - Entrepreneurs face challenges as they are bombarded with requests for fees from supposed investors, further eroding trust in the funding process [6][7] Group 3: Structural Challenges - The number of active equity funds in China exceeds 60,000, yet less than 10% are actively investing, while over 300,000 business proposals are submitted annually, with only 3% receiving term sheets [10][11] - The presence of fake investors not only deceives entrepreneurs but also disrupts the trust framework, making it increasingly difficult for genuine investors and quality projects to connect [11][12]