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May 25, 2024

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Anna Fang is the CEO of ZhenFund, an early-stage venture fund that has invested in over 600 startup companies, particularly in e-commerce and AI, with successful investments in unicorns like RED (XiaoHongShu), Perfect Diary, and Horizon Robotics. Anna began her career in investment banking at JPMorgan in New York City and later helped expand M&A efforts at GE China before joining ZhenFund in 2011.

In a recent interview with AHN Ventures, Anna shared insights about her venture capital journey, the high standards ZhenFund maintains for selecting founders, and the evolving landscape of early-stage investments. Read through to learn more:

HanYue: What inspired you to start Zhen Fund?

Anna: I began building Zhen Fund in 2011 after a significant tenure at GE. The catalyst was a conversation with a Graduate School of Business friend who was with Sequoia China about initiating a Y Combinator-like model in China. During this period, I met Mr. Xiaoping Xu, whose vision was truly inspiring. Additionally, the vast opportunities in China’s entrepreneurial landscape were too compelling to ignore.

HanYue: You are one of the pioneers in China’s venture capital industry. How has being an investor changed over the years?

Anna: Ten years ago, being a VC wasn’t as glamorous as being a private equity or angel investor. The scene was quieter. Entrepreneurship wasn’t as trendy, so it was easier to find thoughtful, high-caliber founders. Our first fund was $15 million, and we made 16 investments, including Xiao Hong Shu, which topped lifestyle app charts, and Huobi, HTX, which became China’s largest crypto exchange, and Deeplint, which went public. The VC scene entered a hype cycle from 2014 to 2020, with an overwhelming amount of money chasing deals. It felt wasteful to me. Now, with a ‘VC winter,’ I appreciate the slower pace that allows for more selective investments.

HanYue: Can you discuss the high standards Zhen Fund maintains when selecting founders?

Anna: There’s a high bar, especially for AI nowadays. Founders must deeply understand the technology. For example, we invested in Zhilin Yang, a renowned and famous PhD.  Zhilin Yang is the founder of Moonshot AI, with a ChatGPT-like product Kimmy Chat.When I was looking for interns, there are kids these days who would say ‘whoa, you invested in Dr. Yang? That’s so cool. I want to work for you.’ Interns want to work for us because we invested in Yang, that was really something special.

HanYue: Yodu achieved many significant successes with your first fund. What excites you currently?

Anna: Lately, I’m fascinated by AGI and the global integration of foundational models into robotics. There’s also a burgeoning interest in applications built on these models, alongside video and productivity apps like monaco.im and max.me. Observing how human and AI co-pilots can coexist and interact is particularly intriguing.

HanYue: You’ve invested in many successful founders. What traits do they share?

Anna: It all boils down to hustle – your organization’s name Asian Hustle Network really speaks volume by the way. Successful founders are not afraid to get out there and continue to network. They have an infectious enthusiasm. Even I had to do it once. When I was just getting started, I would put ‘send me deals’ directly in my email signature.

HanYue: What challenges do early-stage startups typically face, and what advice do you have for navigating these challenges?

Anna: All successful companies have experienced moments where they almost didn’t survive, be it due to regulatory issues, cash flow problems, or founder conflicts. My advice is not to be phased by difficulties. Believe that you will pull through. Having mentorship is also crucial as it provides support and helps solve problems together.

One thing I really love about angel investing is the thrill of being the first to adopt new and innovative ideas, always staying alert and aware of emerging trends. Emma and I often joke about not being the top students at Stanford, always admiring how incredibly smart our classmates are. 

Bob taught me the essentials: reviewing the team page – I often feel like an admissions officer searching for predictors of future success. It’s like trying to find Yao Ming among a crowd of tall people—a search for standout talent in a field of strong contenders. 

With everything changing so fast, I am more excited about looking for really thoughtful founders. For example, I am really excited about this one young man, who used to my intern, he could just sit there and talk about the macroeconomy trends forever. And the way he thinks about what might become popular among young people continues to impress me. For example: The younger generation embraces ‘YOLO’—living in the present. And as a founder, you will need to think about new hobbies and cultural shifts that might emerge, and find ways to take advantage of that. 

HanYue: As a lecturer at GSB and a seasoned investor, how do you differentiate in a crowded VC landscape?

Anna: Our differentiation lies in our founder-first approach and our simplified, transparent investment process. Even when we pass on an investment, we provide thoughtful feedback. Zhen Fund is not just about funding; it’s about fostering a community and offering programs like the EIR and Ostrich Club that systematically identify and support potential top founders. We want to build a supportive community. 

Edwin: What trends from China do you see influencing the US, and vice versa?

Anna: E-commerce platforms like Shein and Temu are leading trends, with TikTok’s integration of e-commerce being particularly noteworthy. We’re also seeing interest in replicating China’s online education model and infrastructure globally. Additionally, attempts to mimic the success of businesses like Luckin Coffee in various international markets highlight the growing influence of Chinese business models abroad.

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Building Tomorrow: How Nan Lin Redefines Homebuilding with 3D Printing 

For Nan Lin, entrepreneurship isn’t just business; it’s freedom. A freedom earned through sacrifice, relentless execution, and a refusal to accept the limits of a broken system. As the founder of Kaizen Capital and 4DIFY, Lin is reimagining the housing industry, tackling its inefficiencies with cutting-edge technology and a bold vision. His mission? To build stronger homes faster, at lower costs, empowering communities and challenging the status quo.

From Immigrant Roots to Visionary Leadership 

Lin’s journey began at age 10, when he immigrated to America with his mother. While adapting to a new country, he was inspired by his loving parents’ sacrifices, which shaped his relentless drive. “I saw the lengths they went to give me a better life,” Lin says. “Their love and dedication became my compass.” Years later, that resolve led to the creation of Kaizen Capital, where he transforms underutilized properties into vibrant housing solutions: ADUs, subdivisions, condo conversions, and luxury short-term rentals. By unlocking hidden value in land, he delivers market-rate and affordable housing that strengthens neighborhoods.

But Lin saw a deeper problem: traditional construction is slow, costly, and vulnerable to fire, pests, and natural disasters. Frustrated by an industry stuck in the past, he founded 4DIFY to lead a new era of construction through 3D-printed concrete homes.

Nan Lin | Founder and Principal of Kaizen Capital and 4DIFY

3D Printing: The Future of Housing, Today

Lin’s vision for 4DIFY was sparked by a frustrating reality: “Wildfires destroy neighborhoods every year, yet we keep building stick-frame homes that burn like kindling,” he says.

After visiting several 3D printer manufacturers, Lin partnered with New York–based SQ4D. It took nearly a year to secure exclusive licensing rights, navigate regulatory hurdles, and obtain building permits, but he got it done.

Now, 4DIFY is building California’s first community of 3D-printed concrete homes. As this article goes live, their first printed home is nearing completion, despite heavy regulations and a steep learning curve. The team is already outperforming traditional timelines and cost benchmarks. The second and third homes will soon print simultaneously, targeting completion in two months, effectively one home per month at under $200 per square foot.

Despite challenges as an Asian immigrant, Lin managed to transform them into motivation and success. 

“We’re aiming to build at half the cost and in a quarter of the time,” Lin says. “That’s not a dream. It’s the direction we’re heading.”

Built with concrete, reinforced with rebar, and topped with metal roofs, these homes are resilient against fire, wind, earthquakes, mold, and pests. They’re also designed for long-term savings, with lower maintenance, less waste, and reduced energy and insurance costs.

“Critics doubted it would work,” Lin reflects. “But seeing is believing. This is the future.”

A Philosophy of Purpose and Resilience

Lin’s journey has been marked by relentless challenges, some seemingly insurmountable. “Obstacles never stop,” he admits. Yet he transforms adversity into opportunity, fueled by a positive mindset, solution-driven focus, and disciplined execution. His trusted team is his backbone. “No one succeeds alone,” he says. “My team turns the impossible into reality.” This resilience shapes his leadership, blending bold vision with purposeful action to create opportunities, particularly for communities long excluded from wealth-building. “Housing isn’t just a product,” Lin says. “It’s a platform for empowerment.”

Recognition and Inspiration

Lin’s impact is gaining notice. The Sacramento Bee named him one of the Top 20 AAPI Change Makers, and he was honored in the Business Elite Awards’ 40 Under 40. But for Lin, the real reward is inspiring others. “I want to show the next generation of Asian entrepreneurs what’s possible when we claim our seat at the table,” he says.

Lin wants to create opportunities for those marginalized by elevating the future of construction, making it more accessible for his community.

Join the Housing Revolution

Nan Lin isn’t just building homes, he’s redefining what’s possible. Through Kaizen Capital and 4DIFY, he’s creating a future where housing is affordable, resilient, and sustainable. Follow his journey and see the revolution unfold.

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