There is an implicit blindly bubble situation behind the interest and enthusiasm towards the Internet entrepreneurship, so it is necessary for entrepreneurs to make scientific and reasonable assessment about the possible risks before the related decisions made. This research embarks from the perspective of entrepreneurs and focus on the risk factors of entrepreneurship in Internet industry based on the existing literature, two selected investors and three entrepreneurs were studied in this research with the grounded theory, after coding the interview datum, we established the model of risk factors that affect entrepreneurship in Internet industry with three dimensions of the systemic external risk, intermediate variable risk and the entrepreneurial process risk. Systemic external risks include the policy influence, social economic risk, industry risk and intellectual property , intermediate variable risks include the market risk and the entrepreneurs, the entrepreneurial process risks include the resources, team and model.