This is why China may be falling out of love with its biggest startups

There's a risk to any company that puts growth and returns ahead of preserving public goodwill. The investors behind China's biggest startups would do well to remember that

Is China falling out of love with its unicorns?

The country is home to four of the world’s 10 most valuable startups, according to CB Insights. Its companies raised about $31 billion from venture capital in the second quarter, beating the U.S. for the first time, Goldman Sachs Group Inc. estimates.

But the biggest of all, Didi Chuxing, is facing public anger, with thousands of users pledging to delete China’s most popular ride-hailing app after a second woman in three months was allegedly murdered while using its Hitch car-pooling service.

The backlash against Didi shows how the combination of sky-high valuations and pressure