Lanchi Ventures Launches Hong Kong Expansion to Connect Chinese AI Startups with Global Markets

The early-stage VC firm Lanchi is extending its reach to Hong Kong, seeking to capitalize on the city’s financial prominence and abundant talent resources as reported by South China Morning Post. Following its split from the US venture capital firm BlueRun, the former China branch, now rebranded as Lanchi Ventures, is embracing 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 with the Post. 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.

“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,” Tan added. This shift towards a global mindset is a change in strategy for many Chinese startups. 

Tan’s journey began in Silicon Valley in 2001 when he joined BlueRun and subsequently set up its China operations in 2005 with headquarters in Beijing. Over the years, the firm has grown into a significant player, managing over 15 billion yuan (US$2.1 billion) and investing in more than 200 startups across technology, consumer, and healthcare sectors. Notable investments include electric vehicle maker Li Auto, which Lanchi invested for five rounds before its 2021 listing, now boasting a market capitalization of US$21 billion.

As geopolitical tensions between the US and China intensify, impacting technology and capital flows, many US venture capital firms have reevaluated their positions in China. Notable firms such as GGV and Sequoia Capital have spun off their Chinese operations amidst heightened scrutiny. BlueRun China, previously managed by a local team, rebranded as Lanchi Ventures last September to reflect its new independent identity.

“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.

Lanchi Ventures’ portfolio includes notable investments like Li Auto, an electric vehicle maker that Lanchi backed through five funding rounds before its 2021 listing. Li Auto’s market capitalization now stands at US$21 billion, reflecting the firm’s successful investment strategy and its capacity to identify and support high-potential startups in the technology sector.

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