Ask A VC: Lu Zhang, The Girl Who Founded A VC Fund at 25

Lu Zhang is 26 years old. Her current title is the Founder and Managing Partner of NewGen Venture Partners, a cross-border venture capital fund investing in the U.S. and China. When she was a master’s student at Stanford University, she became the founder, CEO and technology owner of Acetone. Inc, a medical device startup for diagnoses of Type II Diabetes. After selling her company at 23, she was a Venture Partner at Fenox Venture Capital where she was involved with 20+ investment projects. Forgot to mention, she also has over 10 publications and 3 patents.

Pocket: Tell me about NewGen Partners. How did it start, what made you decide to get involved, and what do you invest in?

Lu: It was my transition from an entrepreneur to investor after selling my startup company. I started the NewGen Venture Partners in 2014, with a focus to invest in and support early stage founders. Generally, we invest in mobile internet (50%) and companies with high technology barriers (50%). Our portfolio is quite versatile, because we have invested across different vertical markets.

Pocket: How is NewGen Partners establishing itself in Silicon Valley as a cross-border VC fund? 

Lu: With the team’s background, experience, and resources, we have set up offices both in the U.S. and Asia. We are able to help the U.S. teams for global expansion, especially entering and penetrating the Chinese market.

Pocket: As a young female VC, what have been your unique advantages? Have you been questioned because of your age, gender or nationality?

Lu: I founded NewGen last year when I was 25. The founder’s community is definitely getting younger these days. As a young investor, I feel that it is easier for me to communicate with new founders and to understand their perspective behind the product or business model. My big advantage is that I am an investor with experience as a former entrepreneur with a successful exit. A few partners in our team have a similar experience as well. It helps us to better understand the founders and help them get to the next step. I was involved in the founder’s community when I was working on my startup. Now as an investor, I can take advantage of the network and connections to do reference checks on the current founders quite easily. There were a few times when people had biases when we first met, because of my age or gender. But they changed their opinion and attitude after we establish initial communications. The good thing about Silicon Valley is that we all have seen young successful founders and female leaders, so I’m not necessarily a “new category”. It’s okay to be unique!

Pocket: Chinese investors are definitely getting more prominent in Silicon Valley. Where do you see as opportunities for Chinese investors to play a bigger part in the U.S. ecosystem?

Lu: Connecting the U.S. technology to the Chinese market, and vise versa. Right now there are tons of business model innovations in China, and the user acquisition speed is unheard of. Startup valuations in Beijing are getting higher than those in Silicon Valley. It is a good opportunity to connect the two sides. Cross-border investments are getting huge, too. Many Chinese investors are looking to invest overseas, and the capital will eventually go beyond Silicon Valley to more metropolitan areas in the U.S.

Pocket: In the U.S., venture capital is heavily male dominated. What is your take on the gender disparity?

Lu: I do think we need more women in the VC industry. Not only because of the gender disparity, but more importantly, most startups have female customers or users. Having a female founding member or a female investor would be helpful to for startup to achieve success. We should make venture capital available as a career option for women, just like accounting, education, and consulting.

Pocket: What’s your advice for young women who are interested in entrepreneurship and venture capital?

Lu: First, you should give it a try, but think through before you make it a career. Sometimes, your personality is more important than your capability to do a startup, and you need to make sure that this is what you really want. Once you have made the decision, don’t worry about other people’s opinion! Just follow your heart to fight for your dream.

Most importantly, be yourself.

Pocket: You have sold a company, worked as a venture partner, and started a VC fund. That’s incredible! What would be your next major career milestone, or what’s your self-expectation?

Lu: I see NewGen as another startup of mine. Just like all other founders, when I am determined to do it, I aim high and devote myself to it.

Pocket: What differences do you see between young women in the U.S. and in China?

Lu: Women in Silicon Valley seem to be more independent. They know what they want for their life and what kind of person they would like to be.

Pocket: Last question. Tell us something we don’t know!

Lu: I’m a musician and my favorite instrument is the drum set. Playing music instruments and reading books are the two best ways for me to relax.