The Charm of the "Eastern Silicon Valley" | WAVES New Wave 2025

This is a new era for China's venture capital industry. Currently, the Chinese venture capital market is not only at the turning point of the cycle bottoming out but also in the in - depth period of structural transformation. In the new ecosystem dominated by policies and highly concentrated by state - owned assets and capital, only by conforming to the trend and making flexible adjustments can we capture certain opportunities in the face of uncertainties.

From June 11th to 12th, at the Liangzhu Culture and Art Center in Hangzhou, the 36Kr WAVES New Wave 2025 Conference, themed "New Era", brought together top investors in the venture capital field, founders of emerging enterprises, as well as scientists, creators, and scholars deeply involved in technology, innovation, and business. They jointly discussed cutting - edge issues such as AI technological innovation, the wave of globalization, and value re - evaluation, dissected their views on business ideals and the future world, and together discussed, searched for, and headed towards the "New Era" of China's venture capital.

On the morning of June 12th, an innovative discussion about the entrepreneurial ecosystem in Liangzhu, Hangzhou was held at the investor venue. The guests participating in the discussion were Fang Kai, the managing director of Yingdong Capital; Cai Zhewen, the investment partner of Saizhi Bole; Wang Luying, the partner of Chizi Fund; Wang Ruiwei, the managing partner and CEO of the China region of Fishburners; and Wang Zhenyu, the president of Tian Shi Wan Venture Capital.

The scene of the round - table discussion

The following is the transcript of the dialogue, sorted out by 36Kr:

Guo Yunxiao: First of all, welcome everyone to the site of WAVES 2025. We've been in Liangzhu for the second day. Now, let's invite each of the guests here to introduce themselves and the institutions they belong to.

Fang Kai: Thank you, host. Good morning, everyone! Yingdong Capital is an early - stage investment institution that has been deeply rooted in Hangzhou for more than a decade. Since its establishment, it has always been focused on supporting early - stage entrepreneurs. A significant proportion of our invested projects come from excellent local enterprises in Hangzhou. In terms of investment directions, during the mobile Internet era, we helped many enterprises grow into listed companies. In recent years, we have been focusing on the application scenarios of AI technology in various industries, covering the fields of AI software and AI hardware. This year, the capabilities of artificial intelligence have been greatly improved, and we also focus on emerging opportunities in the wave of going global. In addition, we are actively deploying in domestic technologies such as semiconductors that are subject to bottlenecks. Thank you!

Cai Zhewen: Hello, everyone. I'm from Saizhi Bole. Our company name is quite easy to remember. Bole is a person good at identifying talents in Chinese legend, and we added "Zhi" (wisdom) because we are in the era of artificial intelligence, and we think we need to be more intelligent. Our company is an industrial investment institution focusing on artificial intelligence. Our company was established quite early. We returned from Silicon Valley more than a decade ago. After coming back, we integrated some overseas investment experiences with local investment philosophies. Our investment institution has been deeply involved in Hangzhou and Zhejiang. The first guiding funds in Zhejiang Province and Hangzhou City are managed by us. It has been about 15 years of investment so far.

Our overall investment strategy is similar to what the country advocates. The country has been advocating investing in early - stage, small - scale, and high - tech enterprises. For 15 years, we have been implementing the country's initiative, and we added one more point: investing in high - quality projects. As a senior angel investment institution, our concept is not to spread the net widely. Instead, after in - depth research, we must identify the leading enterprises or those with the potential to become leading in a certain niche area. After pulling them out through angel investment, we may continue to increase our investment. I'm the partner in charge of the artificial intelligence direction. We are honored to be the angel investor of Deep Robotics among the six emerging AI companies in Hangzhou. Among the so - called "18 AI Arhats", we are also the earliest angel investor of Zhonghao Xinying.

Wang Luying: Hello, everyone. I'm from Chizi Fund. The name "Chizi" implies a pure heart. So we focus on domestic substitution, and our investment directions also include technology, healthcare, and consumption, and we also invest in early - stage and small - scale projects. Regarding domestic substitution, since we are in Liangzhu today, I'd like to specifically mention that in the field of consumption, we focus on cultural and entertainment consumption. Our company has been quite popular this year because we have invested in the two production institutions behind "Ne Zha 2" at the angel round. Besides, we have also invested in many companies such as dubbing companies and card - making companies. So we also pay great attention to domestic substitution in the cultural aspect.

Wang Ruiwei: Hello, everyone. I'm Wang Ruiwei. Coincidentally, the institution I work for also has "Bole" in its name - Fishburners. It's a transliteration of the English word, and it's also in line with the essence of our early - stage investment, which is to identify talents.

Let me briefly introduce Fishburners. We are an overseas institution established in Australia with a history of more than 20 years, and we are a pure US - dollar fund. Since our founder, Peter Davidson, had a legendary experience in Silicon Valley, we have invested in some star enterprises that are quite good in the United States and globally.

I joined Fishburners in 2017 and was in charge of many projects including Starlink and Neuralink at that time. In 2020, our China office was set up in Hangzhou, so I'm like a "newcomer" in Hangzhou. My main focus is on fields such as life sciences, brain - computer interfaces, neuromodulation, and anti - aging. Our investment logic in China is more centered around accelerating transformation and global commercialization paths. Chinese enterprises come to us mostly because they value our resources in overseas financing, overseas business development, and clinical implementation. I myself have long - term connections with universities, laboratories, and research institutions, and I focus on earlier - stage transformation and incubation projects.

Wang Zhenyu: Hello, everyone. I'm Lao Wang from Tian Shi Wan Venture Capital. Except for Mr. Wang who came from Australia, the rest of us are from local investment institutions in Hangzhou, and we are all engaged in early - stage investment. In my understanding, we almost all invest in projects from the 0 - to - 1 stage. Tian Shi Wan Venture Capital has been a local institution for 15 years.

Secondly, our current investment directions are mainly in technology projects, including artificial intelligence, robotics, and high - end equipment manufacturing. At the same time, we also focus on real - world consumption. Although the consumer market has been very cold in the past two years, on the contrary, we are seeing new structural variables in the development process of Chinese society. We are currently focusing on discount retail, especially the transformation of retail channels, similar to models like Costco and Sam's Club in the United States, Aldi and Lidl in Europe, and Uniqlo and Don Quijote in Japan. We generally regard them as innovative variants of the large - scale transformation of discount retail channels in China. These are the two directions we are currently looking at.

Guo Yunxiao: Thank you for your introductions. The theme of this session is "The Charm of the Oriental Silicon Valley". The name mainly comes from the recent online discussions about Liangzhu and Hangzhou. Liangzhu and Hangzhou have been very popular recently. As investors based in Hangzhou, I'd like to invite you to talk about the similarities and differences between what you see in Liangzhu and Hangzhou and what is promoted online.

Fang Kai: Thank you, host! When the question was mentioned just now, I specifically searched for the outside world's evaluation. As someone in the so - called "center of the storm", I really want to know how the outside world views this place. As an "old Hangzhou person" who studied in Hangzhou and stayed here to work after graduation, I've witnessed all the changes in the city. Regarding the saying of the "Oriental Silicon Valley", I think it's not only a hot topic online but also gradually taking shape in reality.

First of all, the changes in Liangzhu have impressed me deeply. I used to bring my children here on weekends just for relaxation. But since last year, I come here once a month because there are developer conferences and gatherings every Thursday. Now it's obvious that more and more entrepreneurial groups are gathering here. There are events like Demo Day, and digital nomads from overseas and even Dali have moved in, forming a significant talent migration trend.

Secondly, we also discussed the reasons for these changes yesterday. Liangzhu has a very advantageous geographical location. It's not far from Yuhang District and the main urban area, and about 50% of the residents are employees or executives of large companies. The density of IT practitioners here is extremely high. This talent structure has directly led to a significant improvement in the quality of practitioners and the scale of the entrepreneurial group.

I think it's evolving towards a more active and focused entrepreneurial ecosystem, but it needs time to mature. These are my personal observations.

Cai Zhewen: The host's question is very good, and it also gives a good name card to Hangzhou. Let me first talk from the investment perspective. We believe that we are in the era of artificial intelligence, the AI era. We highly support young people to engage in this field. Due to different industry characteristics, the age groups, levels, and requirements of practitioners vary. We can see that the most successful AI company globally is OpenAI. When did their founders and scientists start this business? They were all in their twenties. When we look at this field in China, we think that young people in their 30s are the most explosive and creative group in the field of artificial intelligence. So it's very likely that young people will lead this wave of artificial intelligence, and this is our view.

When it comes to the relationship between young people and Hangzhou, currently, the first - tier cities in China are generally considered to be Beijing, Shanghai, Guangzhou, and Shenzhen. I think Hangzhou is also a young - oriented city in the urban system of China. Although it has a long history, it is on an upward trend, which is completely in line with the trend of young people. Young people don't see it as a place with a fixed and rigid industrial structure. Instead, there are infinite possibilities through innovation and entrepreneurship. I can see and feel that young people like to come to Hangzhou.

Secondly, I can responsibly tell you that the environment in Liangzhu is one of the best in Hangzhou. So I think whether you are working or living here, you will feel very relaxed and happy every day. Especially for entrepreneurs who often get frustrated, coming to Liangzhu to breathe fresh air and enjoy the scenery is a very good way to adjust their mood. So I think there will be great prospects for artificial intelligence in Liangzhu in the future.

Wang Luying: My personal feeling is that when I first knew about Liangzhu, I only knew about the Dati Hall. I like watching dramas and other cultural activities. Now I find that 36Kr chose Liangzhu to hold this event, and there are so many entrepreneurs and venture capitalists here. It's said online that there are many digital nomads in Liangzhu. The reason why young people choose Liangzhu is similar to why most entrepreneurs choose Hangzhou. I feel that both Liangzhu and Hangzhou are very peaceful places with history, culture, venture capital, and technology. So I think it's a representative base for the development of venture capital in Hangzhou.

Wang Ruiwei: As an outsider, my understanding of Liangzhu has been gradually established. After coming to Hangzhou, the first time I knew about Liangzhu was because a friend of mine has a company called "Hurricane Studio" here. When I visited, I discovered this place and gradually had more connections with Liangzhu. Just as Mr. Fang said, I come here for a stroll on weekends. Since this year, I've often gone to Yuniaoji in Liangzhu, and the frequency is quite high.

When communicating with many urban governance officials, I often say that to create an entrepreneurial atmosphere and business vitality in a place, the first thing is to gather people. The key to gathering people is to meet their basic needs such as food, clothing, housing, and transportation. To attract young people, we must first meet their living needs and then talk about the business environment and entrepreneurial policies. We should not put the cart before the horse.

Speaking of our own business, this year we have made many local - based attempts and breakthroughs. The most important connection is that we have established a deep strategic cooperation with Liangzhu Laboratory, a provincial - level laboratory in Zhejiang Province. In the future, we will work together with the laboratory in technology transformation, global business expansion (especially overseas), overseas clinical trials, and overseas financing and listing. So basically, I spend two or three days a week in Liangzhu or Yuhang, not necessarily in Liangzhu New City but definitely in this area.

Wang Zhenyu: I have two insights. The first is the marginality, and the second is the conflict.

First, if you look at the map of Hangzhou, you can see that Liangzhu is at the outermost edge of Hangzhou's administrative map. Further north are Huzhou and Anji. Secondly, in terms of innovation, it is also at the edge. In the past, the development in Hangzhou started from the West Lake area, then Binjiang, and then the Future Science and Technology City. But this marginality is exactly what we value most in early - stage investment. We don't like things with excessive consensus. We believe that any revolutionary wave grows from the marginal, desolate, and unattended places. So I think Liangzhu has a certain marginal attribute in the context of economic development.

Secondly, it has a strong sense of conflict. When Vanke was building this area, we were fortunate to know about the whole process. Here, there is a combination of rich historical content, very modern design concepts, commercial elements, and natural scenery, and now there are also many science and technology elements added. So it has a strong sense of conflict. Where there is conflict, there are stories, and where there is marginality, there is the possibility of the future. This is my view of Liangzhu. Of course, it's also a place that makes people feel physically and mentally comfortable.

Guo Yunxiao: I think everyone has spoken very well. This is also the reason why we set the venue at the Dati Hall in Liangzhu. You can see the surrounding environment. There was a panel yesterday called "Comfortable Creation in Liangzhu", which described the state of mind of entrepreneurs here. They can do what they want to do more comfortably. That panel was from the perspective of entrepreneurs sharing some small stories. As local investors in Hangzhou, I'd like to invite you to share the most interesting and impressive small stories with Hangzhou entrepreneurs. Let's start with Mr. Wang.

Wang Zhenyu: We've been doing early - stage angel investment for a long time. I'd like to share a case with you. In 2016, a middle - aged man from the northwest said he wanted to start an industrial Internet project. Since he was in the glass industry, he thought the traditional glass industry was too backward and wanted to transform it with Internet means. But when this project reached our investment decision - making meeting, it was rejected. We had a total of 5 votes, and 4 were against it. Why? The founder had no previous experience in the Internet. He only had a foundation in the traditional industry. So when answering questions, he was sweating profusely, and the project was rejected.

But our colleague Lao Pang couldn't sleep that night. He thought we might miss a big opportunity because the founder had deep industrial experience. And the part he lacked in the Internet, we could help him with. The next day, Lao Pang went to one of the investment committee members and persuaded him to invest. The original investment quota of 5 million yuan was later reduced to 1 million yuan, and the valuation was over 10 million yuan at that time. Now the valuation is 5 billion yuan, and it's about to conduct an IPO on the Hong Kong Stock Exchange. Later, I read what Mr. Gong Hongjia said, that there is a great deal of randomness in early - stage investment, and we should have a sense of awe for this randomness. I felt quite deeply about this.

Looking back, in the soil of Hangzhou, why are there so many possibilities? A traditional middle - aged man in his forties can engage in many cross - border projects. In early - stage investment, there is a great deal of collision between top - down and bottom - up forces.

Wang Ruiwei: Following Mr. Wang, I'd like to add from another perspective. From the perspective of our extremely early - stage technology investment, I think hard - tech projects must have strong application scenarios to support them. It's very difficult for a pure technology - transformation company to develop a complete and mature cycle system in a short period. It needs a large number of local enterprises