Summary:
Lu Zhang founded Fusion Fund in 2015 with an initial $15 million.
Fusion Fund has grown to manage approximately $500 million in assets.
Recently closed $190 million Fund IV, exceeding the initial target of $150 million.
Invested in over 75 startups, producing at least five unicorns.
Zhang emphasizes quick capital deployment over initial fund size.
In 2015, Lu Zhang, an immigrant from Inner Mongolia and Stanford graduate, founded Fusion Fund at just 25 years old. After successfully selling her healthcare startup, Acetone, she launched her venture capital firm with an initial $15 million fund. Fast forward to today, and Fusion Fund has grown to manage approximately $500 million in assets and has invested in over 75 startups.
Recently, Zhang announced the closure of Fund IV at $190 million, exceeding its initial target of $150 million due to high demand from institutional investors. This fund will focus on early-stage tech and healthcare startups, with investments already committed to five companies, including Starpath and SAIF Systems.
Zhang's success is underscored by the fact that Fusion Fund has produced at least five unicorns, including GrubMarket and Lightricks, and achieved 10 successful exits. Despite the challenging fundraising environment post-2021, Zhang's experience as a former founder and her strong technical background resonate with entrepreneurs seeking investment.
Zhang emphasizes the importance of not fixating on the initial fund size but rather focusing on quickly deploying capital and building a robust portfolio. She has also enlisted partners with extensive tech backgrounds to enhance Fusion Fund's capabilities, ensuring they can effectively support the startups they invest in.
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