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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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In 1980, a Vietnamese fighter pilot from a small rural province made history by becoming the first person from Asia to travel into space.

Long before rockets and research labs, Pham Tuan grew up in the rice fields of Thái Bình, far from the world of astronauts and orbiting stations.

Today, his journey beyond Earth remains a powerful story of courage, discipline, and possibility for young people across Asia.

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From Rural Fields to the Edge of Space

Before he ever saw space, Pham Tuan built his career as a fighter pilot in the Vietnamese Air Force. His skill and discipline eventually led to his selection for an international space program, a rare opportunity at the height of global political tension. It was a dramatic shift from flying combat missions to preparing for a journey beyond Earth.

The transition demanded years of intense physical and technical training. He had to master new systems, adapt to life in zero gravity, and prepare for risks no one from his continent had faced before. Each step brought him closer to a milestone that would place his name in history.

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Seven Days That Changed Asia’s Story

On July 23, 1980, Pham Tuan launched aboard a Soyuz spacecraft and became the first Asian to reach space. He spent seven days aboard the Salyut 6 space station, conducting scientific research and observing Earth from orbit. During that time, he captured images of Vietnam from above, offering a view of his homeland few had ever seen.

After returning to Earth, he resumed life in Hanoi with his family, carrying memories of a journey that reshaped regional history. He continues to reconnect with former crew mates and remains one of only three people of Vietnamese descent to have traveled beyond Earth’s atmosphere. Decades later, his achievement still stands as a symbol of how far determination can take someone, even from the most humble beginnings.

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Princeton Engineer Luisa Zhou Left Corporate Life to Build a Million-Dollar Business on Her Own Terms

Luisa Zhou once believed that a Princeton degree and a prestigious engineering title were the ultimate markers of a secure and successful life. However, that sense of safety evaporated the moment her family faced a health crisis and she realized her “perfect” job offered no room for her to actually be there.

She learned the hard way that even a massive salary is a poor substitute for the freedom to prioritize your family during their darkest hours. That realization sparked a fire within her to stop trading her presence for a paycheck and to start building a life where she held the keys.

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Engineering a Great Escape

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This methodical approach allowed her to test her ideas in the real world while the safety of her corporate salary was still intact. She advocates for the slow build because it removes the desperation that often leads new founders to make short-sighted decisions for quick cash. When she finally stepped away from her desk for the last time, she was not taking a leap of faith but rather walking through a door she had already unlocked.

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Redefining the Million-Dollar Life

By the time Luisa officially left the corporate world, her “side project” was already generating over a million dollars in annual revenue. Now at 36, she has designed a lifestyle where four hours of focused work allows her to sustain a million-dollar business on her own terms. Her daily schedule is no longer a list of demands from a manager but a reflection of the people and passions that she values most in the world.

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From Corporate Rejection to Global Power: The Story of Morris Chang Who Controls 90% of the World’s Advanced Chips

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This move was the first step in a journey that eventually placed him in control of the global tech supply chain. By choosing to solve a problem that many other executives ignored, he transformed a career setback into a global revolution. His transition from the United States to Taiwan set the stage for one of the most significant shifts in manufacturing history.

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The Career That Nearly Ended

Back then, if you wanted to design a chip, you had to spend billions to build the factory as well. Chang realized that this massive financial requirement was slowing down progress for everyone in the industry. He envisioned a new model that would allow innovators to focus on their designs while his company handled the heavy lifting of production.

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The Idea Everyone Doubted

Decades of singular focus turned Chang into the most powerful man in tech, with his factories now producing 90% of the world’s advanced semiconductors. This level of market dominance makes TSMC the essential foundation for almost every modern electronic device we use. The sheer scale of his success proves that a single, well-executed idea can reshape the entire global economy.

The importance of his work is highlighted by the fact that if his production stops, the global supply of iPhones, Teslas, and AI systems stops with it. His legacy proves that the future isn’t just built in garages by young people, but by veterans with the grit to see opportunity where others see a dead end. Morris Chang didn’t just build a successful company; he built the infrastructure that the modern world depends on every day.

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How Haruka Nishimatsu Defined Modern Leadership by Cutting His Salary to $90,000 a Year to Save Jobs

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Leading by Example Through Shared Sacrifice

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Prioritizing People Over Short-Term Profits

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The True Source of Professional Respect

Nishimatsu demonstrated that real authority is earned through character and shared experience rather than a fancy title. He did not need a corner office or a massive paycheck to command the respect of his pilots and flight attendants.

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