CEO Insights Asia Team | Tuesday, July 23, 2024
Early-stage venture capital firm Lanchi is expanding into Hong Kong, looking to tap into the city’s financial strength and deep talent pool. After splitting off from US-based venture capital firm BlueRun, the former China branch has rebranded as Lanchi Ventures and is stepping into a new role. Lanchi Ventures aims to connect China’s newest generation of AI entrepreneurs to global markets. “Hong Kong offers a strategic advantage,” Jui Tan and Terry Zhu, managing partners at Lanchi Ventures, said in an interview. The expansion is seen as a key step in building on their redefined mission and broadening their reach.
“One of our key goals is to establish ourselves as a truly global VC fund,” Jui Tan told me in his newly rented offices in Admiralty. “Despite, or maybe because of, geopolitical tensions, investors and entrepreneurs alike are more inclined to adopt a global perspective than ever before,” Tan said, emphasizing the importance of a global perspective in driving innovation and success in the tech industry.
Tan began his career in Silicon Valley in 2001, joining BlueRun and subsequently establishing its Beijing-headquartered China operation in 2005. The company has since become a major player, managing more than RMB15 billion (US$2.1 billion) and investing in more than 200 startups across technology, consumer goods and healthcare. Among its notable investments is electric vehicle maker Li Auto, which Ranchi backed in five investment rounds before its 2021 IPO, now valued at US$21 billion.
As geopolitical tensions between the U.S. and China rise, affecting technology and capital flows, many U.S. venture capital firms are reassessing their involvement in China. Well-known firms such as GGV and Sequoia Capital have spun off their China operations in response to increased scrutiny. BlueRun China, previously run by a local team, renamed itself Ranch Ventures last September to signal its newfound independence.
“Our focus on technology-driven, early-stage investments remains the same,” said Terry Chu, managing partner at Ranch Ventures. “What’s changed is that we’re now broadening our focus.” Ranch Ventures is focused on emerging areas such as artificial intelligence, 3D interactive technology and robotics, which it believes will impact global technological advancements over the coming decades.
Tang highlighted the growing trend among Chinese companies to adopt a global perspective and focus on building world-class products from the beginning. “A lot of Chinese companies are thinking globally from day one, asking themselves, ‘how can we build world-class products?’ and we want to support that spirit,” he said. Ranch Ventures aims to foster this global mindset and help innovative startups make an international impact.
