Hans Tung, a Managing Partner at GGV Capital, is a highly respected figure in the venture capital world, consistently recognized on the Forbes Midas List for his successful investments in companies like Airbnb, Bytedance (TikTok's parent company), Slack, and Xiaomi.[1][2] His extensive experience spanning both the U.S. and Asian markets provides him with a unique global perspective on technology, innovation, and entrepreneurship.
On Investment Philosophy & Strategy
- Globalization is an unstoppable trend. Tung has long believed in the power of globalization, especially for consumer-facing mobile internet companies, making it a cornerstone of his investment thesis.[3]
- Invest in founders with "heavily stamped passports." He favors entrepreneurs who possess a global vision and are not limited by geographical boundaries.[4]
- Founder-market fit is crucial. The personality and background of a founder must be suitable for the market they are targeting.[1]
- The market must be large enough for a billion-dollar outcome. GGV Capital specifically looks for startups in markets with the potential for massive scale.[1]
- Look for a strong ecosystem of community, content, and commerce. Startups that successfully integrate these three elements, like Ibotta and Airbnb, are particularly attractive.[3]
- "Any $20 billion company in the future must be a global company." To achieve massive scale, companies must think and operate globally from early on.[4]
- Prioritize potential over price sensitivity. When a company has the potential for significant disruption and growth, the initial valuation is less of a concern.[3]
- In the U.S., consumer and enterprise software tend to produce more unicorns. While deep tech is important, these sectors have historically generated more billion-dollar companies in the American market.[1]
- In China, consumer tech is a major driver of unicorns. The Chinese market has seen a significant number of successful consumer-focused startups.[1]
- Enterprise startups are a growing opportunity in China. As labor costs rise, Chinese companies will increasingly look to software to improve efficiency.[1]
Advice for Entrepreneurs
- Young entrepreneurs should be less impatient. While eagerness to make an impact is good, patience is a virtue in the long and arduous journey of building a company.[5]
- Founders need to figure out what type they are and act accordingly. Self-awareness is key, whether you have strong founder-market fit or founder-product fit.[5]
- Tenacious founders who learn from previous iterations have a higher chance of success. Even if you miss the first or second wave of a technology, you can succeed in subsequent waves if you are persistent and adaptable.[5]
- Being a founder can be a very lonely job. It's important to build a support system, as you will have to make many tough decisions with incomplete data.[2][5]
- Successful founders are driven, passionate, and have a transformational vision. They are also typically thoughtful, analytical, level-headed, and open-minded to rapid iteration.[6]
- Be willing to adapt your business model, especially in the U.S. American startups often pivot their models once or twice before finding the right one.[1]
- Chinese founders tend to have a clearer direction from day one. While the product may evolve, the initial vision is often more set compared to their U.S. counterparts.[1]
- In China, startups must learn to work with the government. This is a crucial aspect of navigating the Chinese market that can be challenging for foreign companies.[1]
- Focus on providing solutions that are low-cost but high-quality to serve the mass market. This is a key lesson from the success of companies like Xiaomi in China.[6][7]
- The mass market may have lower disposable income but more time to engage with your service. This can be a significant advantage for consumer-facing companies.[6][7]
On Market Trends & The Future
- "Over the next ten years between 2013 and 2023, the globalization of mobile Internet, especially for consumer companies, will be the most important trend I will ever bet on in my career." This prediction highlights his deep conviction in the transformative power of mobile technology.[3]
- Silicon Valley will always be a hub for the latest innovations. As long as it remains open to global talent, it will continue to be a place people flock to for new ideas.[1]
- The "super app" concept from China offers valuable lessons for companies worldwide. The integration of multiple services into a single platform is a powerful model.[7]
- 5G will unlock the true potential of technologies like VR and AR. The advancement in network speeds will enable new and immersive experiences.[5]
- AI and robotics will bring significant changes to industries like trucking and logistics. Automation will continue to reshape traditional sectors.[5]
- More people in the world means more problems to solve. Tung sees a growing population as an opportunity for innovation in areas like food tech, ag tech, and fintech.[2]
- There is still plenty of room for growth in e-commerce. Despite the dominance of giants like Amazon, the market is large enough for new startups to thrive.[3]
- Chinese companies like Alibaba and Tencent are expanding globally. This trend is a testament to the increasing influence of the Chinese tech ecosystem.[3]
- U.S. companies like Airbnb and Uber are also growing internationally and looking to China. This creates a dynamic of cross-pollination and competition in the global market.[3]
- Millennial values are converging worldwide. This creates opportunities for companies to build products and brands with global appeal.[3]
Learnings from a VC Career
- Being a VC is more interesting than anything else he could be doing. Tung found his passion in early-stage investing after trying his hand at investment banking and co-founding two startups.[5]
- A multicultural background can be a significant advantage in global investing. His ability to understand both Eastern and Western cultures has been instrumental to his success.[6]
- Moving to China in 2005 was a pivotal career decision. It allowed him to witness firsthand the rapid evolution of the country's tech landscape.[8]
- The Chinese startup ecosystem is fiercer in terms of competition than Silicon Valley. This challenges the notion that China is a protected market for local companies.[7]
- Learning from history is a valuable tool for a VC. Tung is a student of history and uses his understanding of societal shifts and trends to inform his investment decisions.[4][5]
- Reading books on behavioral science can provide valuable insights. Works by authors like Malcolm Gladwell have helped him understand how trends emerge and products get adopted.[3]
- Investing in companies that democratize access to technology is a recurring theme. Many of his portfolio companies empower both consumers and businesses.[9]
- The lessons learned from failed startups can be invaluable. His own experiences as a founder have helped him better serve the entrepreneurs he backs.[2]
- Sometimes you need a stepping stone to get to your desired career. His early career in investment banking and growth capital led him to venture capital.[3]
- Diversity in VC and startups is essential. Building diverse teams leads to better decision-making and a deeper understanding of underserved markets.[3]
- You learn a lot from the people you interview and work with. He sees his podcast and other platforms as a way to both share knowledge and learn from others.[2]
- Venture capital is about more than just money; it's about being a counsel to founders. Experienced VCs can provide valuable guidance during challenging times.[5]
- A VC's track record is built on investing in multiple unicorns. Tung's portfolio includes over 18 companies valued at over $1 billion.[8]
- His investment in Musical.ly (now TikTok) is a prime example of a successful early-stage bet. GGV invested when the company was valued at around $100 million.[2]
- He was an early investor and board member of Xiaomi. His belief in founder Lei Jun's vision to provide high-quality, affordable products was a key factor in his investment.[1][8]
- He played a role in helping Airbnb with its China strategy. His cross-border expertise has been valuable to many of his portfolio companies.[8]
- He helped broker the first meeting between Uber's co-founder and Didi Chuxing. This demonstrates his role as a connector in the global tech ecosystem.[8]
- Being recognized on the Forbes Midas List for over a decade signifies consistent success. This is a testament to his ability to identify and back groundbreaking companies.[9]
- Giving back and sharing knowledge is a great way to help other founders and VCs. He is passionate about mentoring the next generation of entrepreneurs and investors.[2]
- "I think over time as investors get to know Xiaomi better, will come to view it as a different kind of hardware company than what we are used to seeing." This quote reflects his ability to see beyond conventional wisdom and identify disruptive business models.[8]
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