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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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Google Data: Nearly Half of Gen Z Searches on TikTok Rather than Google

TikTok, which is the social media app that is expanding at the fastest rate, has seen its user base skyrocket over the past few years.

A Google executive has confirmed that the format of TikTok is changing the way that young people conduct internet searches, and Google is working to keep up with these changes. 

According to data that was initially discovered within Google and reported by TechCrunch, nearly 40% of members of Gen Z prefer to search using TikTok as well as Instagram rather than Google Search and Maps when they are looking for a place to eat lunch.

Google has now confirmed this figure to Insider and has acknowledged that they face stiff competition from a variety of sources, including general and specialized search engines, as well as apps that are designed specifically for searching. 

It is also predicted that TikTok’s advertising revenue will overtake YouTube by 2024, according to Insider Intelligence.

Google has outlined the modifications it intends to make to its search engine in order to appeal to a younger audience. One of these adjustments is the addition of a feature that will allow users to pan their camera over an area and obtain instant information about multiple objects in a wider scene.

Image Source king5.com

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Former King 5 Anchor Lori Matsukawa Receives One Of Japan’s Highest Honors

Lori Matsukawa, a former Hawaii resident, and Seattle news anchor received the ‘Order of the Rising Sun Sun, Gold and Silver Rays’, one of Japan’s highest honors.

The award was for her contribution to promoting Japan-U.S. friendship. “This is a true honor and thrill for me because for the last several years, I’ve been really working hard to connect people in Japan and people in the United States on a person-to-person basis,” Matsukawa told KING 5.

The award was more generally bestowed upon distinguished members of the Japanese military since 1875, but in 2003, the honor was extended to women.

Matsukawa was a well-known journalist for the Seattle media and KING 5, as well as a former president of the Japanese Cultural & Community Center of Washington. She brought to light important events in Japanese American history, particularly those that occurred during World War II, through her reporting.

Her Emmy-award-winning documentaries centered on the detention of Japanese people in the Pacific Northwest during World War II.

Matsukawa was also instrumental in founding a chapter of the Asian American Journalists Association.

King County has designated June 29, 2019, as Lori Matsukawa Day in honor of her retirement.

Image Source planetnewspost.com

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Renowned NYC Little Tokyo Restaurateur Faces $95M Sexual Assault Lawsuit

A $95 million lawsuit has been filed against a restaurant owner behind several top East Village Japanese restaurants, Shuji Bon Yagi for allegedly sexually assaulting an employee this winter. 

The lawsuit was filed by Nozomi Horikoshi, a top executive at Yagi’s restaurant group T.I.C., who claims Yagi allegedly assaulted her while she had passed out after a night of drinking and could not consent, according to the New York Post.

According to the allegations made in her file, Horikoshi, who has been employed by the well-known restaurateur for close to a decade, stated that he invited himself to celebrate the birthday of another female colleague “knowing that his wife was in Japan throughout the weekend.”

Horikoshi claimed that her boss forced her into a taxi sometime after 2:00 a.m. and then began groping, caressing, and attempting to kiss her when she was very intoxicated. She “tried to push Yagi off her and told him to stop, but due to her level of intoxication, the plaintiff eventually lost consciousness inside the taxi,” the filing alleges.

Yagi reportedly drove her directly to his residence on West 58th Street, as obtained from the GPS information from Horikoshi’s cell phone. Horikoshi ultimately awoke with her employer allegedly resting on top of her while she was naked from the waist down.

“I realized I was naked from the waist down … that was so embarrassing.” The 51-year-old married mother of three told the New York Post, “I was like what happened? I have to go home. I knew that something happened already,” she continued. “There was a feeling of shame.”

Horikoshi’s attorney claimed the lawsuit was about “power and accountability” for Yagi, a high-profile businessman renowned for influencing Japanese cuisine in New York.

Dubbed an “East Village ambassador for Japanese cuisine” by the New York Times, Yagi’s restaurants include Rai Rai Ken, Cha-An, Sobaya, and Bar Decibel.

Sinful Treats

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Recession, Pandemic Won’t Stop This Momma Baker For Taking On New Opportunities

Have you ever thought of opening a business during a recession? How about during the pandemic? Well, this lionhearted momma just did that!

Filipino-American Mariel Black started her baking business, Sinful Treats, in June 2009, at the peak of the recession — everyone thought she was crazy to start a business at that time. She had only one product to sell, some unknown Filipino pastry called ‘Food for the Gods’. “No one knew what it was. I had to tell people, ‘it’s like a blondie with dates and walnuts’” she said. Starting out as an online bakery, she gave out samples to whoever was open to trying her product. People never heard of it, but once they tasted it, they loved it! 

Because everyone was hurting during the recession, she found that people were more inclined to help each other. Soon, a few coffee shops agreed to carry her products, and she also kept selling online.

“This photo marks the beginning of our Sinful Treats adventure. My boys have been involved since Day 1.” -Mariel

Her big break came in 2011 when the Railroad Museum in Old Sacramento ordered 19,800 Snickerdoodle cookies for their main holiday event, The Polar Express. A year before that, she took her 4-year-old son on the train ride, where they served cookies and hot cocoa just like in the movie, Polar Express. He took one bite of the cookie, then he told her that she should make the cookies. “Ah, the power of suggestion, from a 4-year-old!” Mariel exclaimed. 

She talked to the coordinators and gave them cookie samples and they loved them. The following year, they ordered 19,800 Snickerdoodles. “I said YES, even if at that time,” she said, “I had no kitchen and no employees to help me. I had a couple of months to figure out how to make it happen.”

She rented a kitchen in a restaurant at night and asked friends to help, “I had a crew of 5 people. Like little elves, we’d bake all night while the restaurant was closed.” They only had one oven with 2 racks, only able to bake 48 cookies every 12 minutes. The cookies were baked from scratch, scooped by hand, packaged individually, sealed with a heat sealer, and labeled — all 19,800 of them! 

“It was the most exhausting but exhilarating experience. It was then I knew that I loved the thrill and pain that came with being a business owner.” She’s been baking for the Railroad Museum since then.

“Ah, the power of suggestion, from a 4-year-old!”

-Mariel black

Sinful Treats grew to have its own retail location a few years later and became a full-service bakery and catering company. They created and launched their first baking mix in 2015 with their signature product, “the treat that started it all” — Food for the Gods Baking Mix.

The year 2020 would have been their 10th year baking for the museum, “but 2020 had a different plan for all of us” she said. All of their Fall and Holiday events have been canceled. “Being in the baking business, our fourth quarter is when we make the most. Suddenly, all of it was gone. Having survived and thrived during the recession, I can honestly say this year, this pandemic is a lot harder than the recession.”

But the lockdown didn’t stop Mariel to continue her passion, rather she pursued another idea – to have a one-stop shop for baked goods. “Recession, pandemic, lockdowns won’t stop me. There are always opportunities even in the worse scenarios.” 

In October 2020, she launched an online marketplace where local bakers can sell their products and grow their small businesses. Sinful Treats is now home to the best local brands. Mariel’s goal is to empower small business owners, especially women and minority-owned businesses. All Bakers and Food Makers who have something special and have unique products to offer are welcome to join, “The food industry is already very competitive, but we are stronger together. So my hope is that through this marketplace, we can all help each other grow.” They ship cakes, cookies, desserts, and gourmet food across the United States.

Sinful Treats’ Business Partners

“The food industry is already very competitive, but we are stronger together. So my hope is that through this marketplace, we can all help each other grow.”

-Mariel black

“Everything I have worked for seemed to be a stepping stone to what I’m doing now,” she said, “Having a brand that’s already established, a working website, products that have been tried and proven, years of networking and relationship building, all of this and more are now helping to make this new path easier to take and faster to grow.”

Mariel always gets a thrill watching businesses grow, she also shares over a decade of her experience and wisdom with new small business owners. “I love baking, but my real passion is business”. She guides her marketplace sellers with what they need; teaching them about branding, pricing, basic accounting, packaging, shipping, and even how to improve their products and come up with new ones.  

“I always tell my kids, when something bad happens, it’s usually a blessing in disguise,” she added, “True entrepreneurs find opportunity even in the worst scenarios.” 

Website: sinfultreats.net

Instagram: @sinfultreats

Facebook: Sinful Treats

Twitter: @SinfulTreats