The early-stage venture capital firm Lanchi is expanding into Hong Kong, aiming to leverage the city's financial strength and rich talent pool. After its separation from the US-based BlueRun venture capital firm, the former China branch has rebranded as Lanchi Ventures and is stepping into its new role. Lanchi Ventures aims to connect the latest generation of Chinese AI entrepreneurs with global markets. “Hong Kong offers a strategic advantage”, said Jui Tan and Terry Zhu, managing partners at Lanchi Ventures, in an interview. The expansion is seen as a crucial step in building on their redefined mission and broadening their reach.
“One of our key goals is to position ourselves as a truly global VC fund”, said Jui Tan in their newly rented office in Admiralty. Despite geopolitical tensions, or perhaps because of them, both investors and entrepreneurs are more driven than ever to adopt a global perspective”. Tan emphasized the importance of a global outlook in fostering innovation and success in the tech industry.
Tan's career started in Silicon Valley in 2001 when he joined BlueRun and later established its China operations in 2005, with headquarters in Beijing. Since then, the firm has become a major player, overseeing over 15 billion yuan (US$2.1 billion) and investing in more than 200 startups across technology, consumer goods, and healthcare. Among its notable investments is Li Auto, an electric vehicle manufacturer that Lanchi supported through five rounds before its 2021 IPO, now valued at US$21 billion.
As geopolitical tensions between the US and China escalate, affecting technology and capital flows, numerous US venture capital firms have reassessed their involvement in China. Prominent firms like GGV and Sequoia Capital have spun off their Chinese operations in response to increased scrutiny. BlueRun China, which was previously managed by a local team, rebranded as Lanchi Ventures last September to signify its new independent status.
“Our focus on tech-driven early-stage investing remains the same”, said Terry Zhu, managing partner at Lanchi Ventures. “What has changed is that we are now broadening our focus”. Lanchi Ventures is emphasizing emerging fields such as artificial intelligence, 3D interactive technologies, and robotics, believing these areas will influence global technological advancements in the coming decades.
Tan highlighted the growing trend among Chinese companies to adopt a global perspective from their inception, with a focus on creating world-class products. “Many more Chinese companies are thinking globally from day one, asking themselves, ‘How can we create a world-class product?’ and we want to support that spirit”, he said. Lanchi Ventures aims to foster this global mindset and support innovative startups in their quest to make an international impact.