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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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Image Source: Jonathan Sanchez

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Learning From His Single Mom, Parent Portfolio Co-Founder Jonathan Sanchez Realizes Financial Independence at 37

Now living a financially-stable life, the couple founders of Parent Portfolio, a website that serves families to make progress with their money and helps the younger generations become financially wise, teaches their kids lessons towards a successful life.

Born to a financially precarious environment, Jonathan Sanchez was reared with a thrifty outlook by his single mom, which made him yearn for financial stability.

Sharing the same financial sentiments, or even more, with his mother made him believe that if he would be able to get a degree and land a well-paid career, he would be freed from all his money issues.

However, he then realized that his mindset was not as easy as it seemed as, despite achieving a profession together with his wife, Jacqueline Sanchez, their incomes were just enough for their family’s essential needs. 

The Sanchez couple’s life turned 360 degrees after realizing a $1 million net asset by being economical, able to save, doing part-time jobs, and venturing into real estate.

At 37, Jonathan realized his long-dreamed financial independence and stability. In 2020, he decided to share this with other people by co-founding the Parent Portfolio with his wife.

Aside from helping other people, the couple is also bound in educating their kids with the following five valuable tips they shared on CNBC: 

  1. Always rethink one-time purchases. Living within the means and spending efficiently only on what is needed; 
  2. Budgeting gives you more freedom. Planning your budget is financial freedom which benefits you over and over again; 
  3. Don’t let social media influence your spending. Do not be pressured by what you see in the public network and discipline yourself in using gadgets; 
  4. Know where the money comes in, and where it goes out. The couple exposes their children to their income resources, introduces them to the “real world” and even shows diagrams on how to deal with the people and offices they transact with; and, 
  5. Start saving early, and don’t expect to get rich overnight. Learning from the fable of The Tortoise and The Hare, the couple teaches their children of being wise and patient.

“For now, your mother and I are responsible for providing for your needs and wants. A bank is a safe place to put your money because it allows the funds to grow over time. And when you’re old enough, you can use that money for your own goals,” Jonathan tells his children.

Image Source: Las Vegas Review Journal

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Patricia Lee Sculpts History as First Black Asian American To Succeed Seat F In Nevada Supreme Court

Following her victory over the other two candidates, Patricia Lee made history by becoming the first Black and Asian American attorney to hold the vacant Department F seat on the Nevada Supreme Court.

Lee was chosen by Gov. Sisolak from among the candidates put out by the state Judicial Selection Committee to take the place of Justice Abbi Silver, who resigned from her position due to “unexpected circumstances” and a desire to spend enough time with her family.

Being an attorney in Las Vegas, Lee contended with Washoe County District Judge Scott Freeman and Clark County District Judge Tierra Jones.

The Reno Gazette-Journal cited Sisolak saying, “I am thrilled and honored to appoint Patricia to serve on the Nevada Supreme Court. The breadth and depth of her skill set, as well as her personal and professional experience, make her an excellent addition to the State’s highest court.”

Lee will begin serving her term in January 2025 and must run for reelection in two years in order to preserve her position.

Lee’s mother, a native South Korean, and father, an African-American soldier, brought her up in South Korea. She majored in psychology and communications at the University of Southern California, where she also participated in the Black Students’ Union and had her first political experience.

She started working at Hutchison & Steffan in 2003, concentrating on family law, trademark law, medical claims billing, and business and commercial disputes. She later joined the firm as a partner.

Lee is a skilled attorney with a history of being chosen as the chair of the Nevada Crime Commission by the then-Gov. Jim Gibbons, a volunteer with the Children’s Attorney Project in Las Vegas who advocates for abused and abandoned children, has handled pro bono cases at the Legal Aid Center of Southern Nevada.

Nonetheless, Lee is not just a dedicated lawyer but also a devoted family woman being a mother to Brianna and Devin, and a wife to Ronnie.

Image Source: South China Morning Post

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Bankrupt Chinese Restaurant Owner Bounces Back To Pay $6.4 Million Debt Through Sausage-Selling

“We are born with nothing. Why be scared of starting all over again?” says Chinese Tang Jian after starting up a street food stall in Hangzhou, China following his business bankruptcy which left him with $6.4 million.

At 52, the former millionaire Chinese restaurant proprietor is positive of earning funds to pay his multi-million debt by selling barbecued sausages.

Thus, his optimism put netizens in awe as a person, who despite losing his 16-year-old business venture and everything he had because of the unsuccessful investment in the landscape engineering industry, is still hopeful of being able to recover from the downfall.

Tang was once a successful businessman starting at the age of 36. However, because of the fruitless outlay, he was compelled to sell everything he founded through his business including his restaurants, homes, and cars.

Still unable to pay his debts in full, Tang decided to put up the small-time sausage-selling business.

Tang proudly exclaimed that “Every sausage is genuinely filled with meat, and there is no starch in it. When compared with those sold in amusement parks or markets, ours will make you feel safer,” as quoted in South China Morning Post.

Upon knowing that his story trended in social media, Tang explained that it was because all of us face our own challenges in life, however, we must always have that strong spirit of winning each battle. 

He also said that he is really determined to settle his debts although still uncertain when it would be.

Tang shared that bravery is a key to overcoming hardships and going on in life and that we should always seek strength, especially during hard times.

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Virginia Embraces Diversity and Korean Culture, Celebrates First Kimchi Day

Being home to one of the biggest Korean communities in the nation, Virginia had its first-ever Kimchi Day on November 22, through the Korean American Women’s Association.

Held at the Good Shepherd Evangelical Church in  Springfield, the festivity was materialized especially for this motive: acknowledge kimchi as a nonnative dish in Virginia which is specially imported for the increasing number of Korean American citizens in the country. It also reflects how the state has embraced diversity.

During the celebration, roughly 150 people of different colors converged to make their own kimchi, following the traditional and neat process of kimchi preparation. 

Originally, families and acquaintances converge to happily prepare the ingredients, store them in jars, and place them underground for fermentation producing a savory, piquant, and sugary kimchi. This is done every November, a month after harvesting cabbage.

On the other hand, it was officially moved to be celebrated in January through Irene Shin (D), the foremost Korean American servant in the House of Delegates, who acquired two-way support for her proposition.

For Koreans, kimchi is beyond being a cuisine. It narrates Korea’s past, its folks’ tenacity, and its landscape which Koreans are more than proud of. Kimchi is a celebration of family and blessings.

Northern Virginia and Annandale seem to be “Korea Towns” as Korean establishments like diners, worship places, food markets, bakeries, and beauty shops in Hangul inscriptions are all over. The state and Korea have found strong connections with each other that Fairfax County Economic Development Authority can even be found in the latter’s capital.

A Korean American mentioned how Kimchi Day appreciates the essence of exporting not only the product but of Korean culture; a manifestation of how the US whole-heartedly accepted acculturation.