As a leading venture capitalist in the healthcare sector, Nisa Leung, Managing Partner of Qiming Venture Partners, has a wealth of knowledge and experience in identifying and nurturing innovative companies. Her insights offer invaluable guidance for entrepreneurs, investors, and anyone interested in the future of healthcare.
On Investment Philosophy and Strategy
- Focus on the long-term vision. Leung emphasizes that a long-term vision, not short-term cash flow, is the key to entrepreneurial success.[1]
- Invest in people. One of her most difficult investment decisions was to back a two-person team without a protocol, demonstrating her belief in the potential of the founders themselves.[1][2]
- Look for unmet needs. When Qiming Venture Partners started, their strategy was to fund companies that addressed the basic, unmet healthcare needs in China.[3]
- Invest early. A significant percentage of Qiming's healthcare investments are in angel or series A rounds, often when companies have only a few employees.[3]
- Don't follow the herd. Leung advises to "try to do something different. Try not to follow the herd."[4]
- Think about the future. "We always think of what will happen in 5 years and 10 years' time," she says, emphasizing a forward-looking mindset.[4]
- Valuations have become more attractive. With adjustments in public valuations, Leung sees more attractive value propositions in private rounds.[3]
- Support portfolio companies through their journey. Qiming's approach is to support their portfolio companies "through their journey along the way."[3]
- Invest in what you know. Her team's deep understanding of the healthcare sector's regulations was crucial when investing in health tech companies.[5]
- A slowdown in investment pace. Leung has noted a slowdown in venture investing in China due to difficulties in fundraising, particularly in RMB.[6]
On the Healthcare Industry
- China's healthcare industry has seen prolific growth. Leung has witnessed and participated in the transformation of China's healthcare market from the world's eighth-largest to the second-largest.[3]
- The COVID-19 pandemic spurred innovation. She highlights how many healthcare entrepreneurs stepped up during the pandemic with vaccines, diagnostics, and new technologies.[5][7]
- Technology is driving the future of healthcare. Her team has been actively investing in firms specializing in artificial intelligence, robotics, and health technologies.[5][7]
- China is developing best-in-class drugs. Many are surprised that China is able to develop so many best-in-class drugs for global markets.[8]
- Helping align China with global standards is a key focus. A major goal is to help China's healthcare industry align its drug discovery and development practices with global standards.[5][7]
- The rise of licensing deals. Business development deals are increasingly focused on licensing innovative drugs from China to global markets.[8]
- New modalities are on the horizon. Leung predicts that healthcare startups will explore "new modalities," focusing on areas like neurodegenerative diseases such as Parkinson's and Alzheimer's.[9]
- Advancements in liquid biopsy could make cancer a "chronic disease." She believes that innovations in diagnostics could transform cancer from a terminal illness into a manageable condition.[9]
- There's a need to address overlooked illnesses impacting women. Leung points out that conditions like fibroids and endometriosis are critically overlooked, presenting opportunities for research and investment.[9]
- The importance of home-grown talent. China has a dedicated and hardworking talent pool of scientists and entrepreneurs.[8]
On Entrepreneurship and Fundraising
- Startups don't always need to raise a lot of money. Leung has observed that "a lot of the time, startups don't actually need to raise a lot of money."[1]
- It's about the right amount of funding. The key is to raise enough to reach the next milestone and significantly increase the company's value.[1]
- Finding your passion is crucial. "It's very important to find your passion," she advises. "I really believe everyone is made to do something great, but you have to find it."[4]
- Persistence is key. She has supported companies that took more than double the expected time to build a prototype, demonstrating the importance of believing in a team's long-term potential.[2]
- Be suitable for the local market. When investing in China, it's crucial to back companies with models that are suitable for the Chinese market, rather than just copying what works in the U.S.[5]
- IPOs are still possible in a selective market. While investors have become more selective, it is still possible for companies to have successful IPOs.[8]
- Entrepreneurs need to adapt to different market requirements. Listing requirements vary between exchanges like the Hong Kong Stock Exchange and the Shanghai Stock Exchange, and companies need to be strategic about where they go public.[3]
- Don't be afraid to work away from home. Leung encourages young people to gain work experience in different countries before settling down.[4]
- The importance of a global mindset. She believes it is important for talent to move around and "cross-pollinate ideas and collaborate for the better good."[8]
- Making an impact is a powerful motivator. Being able to support great healthcare companies that bring new products to the market is a source of pride.[2]
On Leadership and Personal Growth
- Find inner peace. Leung emphasizes the importance of finding self-peace to understand one's own feelings and priorities.[4]
- Don't get bogged down by trivial things. Through inner peace, one can identify what is truly important and focus on those things.[4]
- Observe daily life for insights. She and her team take a lot of observations from daily life to understand how people's behavior is going to alter.[4]
- Don't spend too much time on the fine print or social media. Leung prefers to focus on the headlines and avoid the time-consuming nature of social media.[4]
- The journey from entrepreneur to investor. Before her venture capital career, Leung co-founded three healthcare companies in China, giving her firsthand experience of the challenges entrepreneurs face.[3]
- Contribute to humanity. She encourages young people to join the healthcare industry to make a contribution to humanity.[5][7]
- Giving back to the ecosystem. Leung and other venture investors in Hong Kong have created an alliance to mentor and advise local entrepreneurs.[5]
- Recognized as a top investor. She has been consistently recognized on the Forbes Midas List and as one of the Best Women VCs by Forbes China.[10]
- Women have more opportunities in China's healthcare space. Leung believes that the opportunities for women in healthcare are more expansive in China compared to Silicon Valley.[9]
- The goal is to extend human life. "If we can even help a little bit by extending the average age of the world by five years, that would be great," she says.[9]
On the Market and Future Trends
- The market has seen a notable increase in M&As. While the IPO market has been less active, there has been a rise in mergers and acquisitions.[8]
- Investors are becoming more knowledgeable about healthcare sub-sectors. The introduction of Chapter 18A on the Hong Kong Stock Exchange has helped educate public investors about the biotech industry.[5]
- The impact of US-China trade tensions. Leung notes that China tech and healthcare investments into the US have dropped significantly due to trade tensions.[6]
- The rise of AI in drug discovery. Qiming has invested in companies like Insilico Medicine, a leading AI drug discovery company.[5]
- Surgical robotics is a key area of investment. Cornerstone Robotics is another portfolio company that is a leader in the surgical robotics space.[5]
- Gene editing is an emerging field. She has also invested in a base editing company, highlighting her focus on cutting-edge technologies.[5]
- The growth of the Chinese healthcare market has been rapid. While she expects the growth on the pharmaceutical side to slow down to single digits, other areas remain exciting.[2]
- Digital health is a growing sector. Qiming has invested in over 20 health tech companies, including the leading internet hospital chain, WeDoctor.[5]
- The importance of a multi-market exit strategy. Qiming's portfolio companies have listed on NASDAQ, the Hong Kong Stock Exchange, and the A-share market in China, demonstrating the need for flexibility in exit strategies.[3]
- The potential of Hong Kong as a biotech hub. Leung hopes to see more and more opportunities coming out of Hong Kong's growing biotech ecosystem.[5]
- The ultimate goal is to solve incurable diseases. Underlying her impressive track record is a deep desire to make a meaningful impact on global health.[9]
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