Kungfu Bear had its day.

Wang Run founded the startup in Beijing just over a year ago to let people order inexpensive massages through a smartphone app. As venture capital money flooded into China, the company raised cash to draw customers and acquire rivals. Its valuation topped $15 million.

Now the good times are over for Kungfu Bear and many of China's once-hot startups. After pouring more than $30 billion into the country in 2015, venture firms switched off the easy money, concerned there's too much competition.