Zhang Fan’s journey with founders–from Maxscend’s slow climb to billions in market capitalisation to mentoring AI-driven startups across Southeast Asia–highlights a simple but powerful truth: technology may start the story, but it’s people, persistence, and practical value that finish it.
As Southeast Asia cements its position as a rising innovation hub, his words resonate as both a challenge and a reminder: tomorrow’s difference makers aren’t just those who shine on stage and quietly keep going when the odds stack high.
Zhang Fan, former founding Managing Partner of Sequoia Capital China and Visionary Partner of the Lee Kuan Yew Global Business Plan Competition (LKYGBPC) by the Singapore Management University, has spent decades backing founders who redefine industries. From early bets on China’s semiconductor pioneers to mentoring student-led startups in Southeast Asia, he has consistently emphasised grit, resilience, and practical value over hype.
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e27 spoke with him to discuss his investment philosophy, lessons from the early days of Maxscend Microelectronics, and why Southeast Asia is brimming with entrepreneurial promise.
You’ve often said you don’t evaluate startups based on hype. Where does that philosophy come from?
It comes from experience. In the early 2000s, I invested in a small startup called Maxscend Microelectronics. The company wanted to build an IC chip that would let mobile phones receive terrestrial TV signals. It felt like a bold, inevitable convergence between broadcasting and mobility at that time.
I didn’t start with spreadsheets; I started with a conversation. These engineers had just returned from Silicon Valley, and their conviction about China’s rising electronics demand was palpable. That belief compelled me to back them.
But the journey was brutal. The company’s first three products failed commercially. They were technically sound, but the market wasn’t ready. Yet what impressed me was how the team refused to give up. By 2010, the team realised the real pain point was in radio frequency (RF) front-end components for smartphones. It quietly pivoted, partnered with TSMC, and launched a low-noise amplifier that global smartphone makers embraced.
Fast-forward: By 2019, Maxscend went public in Shenzhen, and today, it is worth over RMB 41 billion (US$5.7 billion). The lesson? Technology alone doesn’t build enduring companies. It’s about teams that persist, learn, and adapt until they find the right fit.
What do you look for in founders when backing early-stage startups?
I dive into the messy parts: revenue dips, broken funnels, failed go-to-market attempts. I do this not to challenge them but to understand the gravity they’ve fought against.
Resilient founders aren’t afraid of failure; they treat it as feedback. Even now, in the age of AI, where possibilities seem limitless, my compass hasn’t changed. I ask: Does this solve a pain so essential that people will demand it ten years from now?
If the answer is no, then it’s just another flashy demo. That’s why I value practicality over presentation, what I call “practical value.”
Can you share examples of founders who embody this kind of resilience?
Absolutely. Look at Alexandr Wang, who founded Scale AI. He built it to solve a data-labelling challenge he personally encountered. That kind of firsthand problem-solving creates lasting impact.
Closer to home, Lenard Zhuang in Southeast Asia is modernising construction safety using AI-powered video analytics. It’s not glamorous, but it addresses a mission-critical need that saves lives and reduces risk in an overlooked sector.
When local understanding meets global ambition, you get resilience that’s hard to replicate.
You’ve been actively involved with Southeast Asia’s innovation ecosystem. What excites you about it?
The energy here is palpable. Beyond the sheer scale of opportunity, what excites me most are the founders, especially student founders, who are solving real problems.
Singapore Management University’s Whitepaper on Innovation and Entrepreneurship highlights how universities in this region are becoming hubs for scalable and sustainable talent. I’ve seen it firsthand while reviewing submissions for the Zhang Fan Global AI Initiative Award, part of the LKYGBPC.
These founders aren’t chasing applause. They’re building purposeful solutions, often with sharp market understanding and a clear focus. It’s deeply energising to witness.
What will you look for in the next generation of entrepreneurs when you meet them in Singapore this September?
I’ll apply the same lens I used with Maxscend two decades ago. I want to see if they have discipline, humility, and practical value. Do they listen harder after each failure? Do they adapt instead of giving up? Are they building something that will stand the test of time?
Also Read: Why startup founders should not escape failure
True success doesn’t lie in the spotlight. It’s built in those quiet, determined moments when founders keep pushing forward long after others have stopped believing.
Finally, what advice would you give to young founders just starting out?
Start close to home. The strongest ideas often come from problems you’ve personally faced. Stay resilient; failure isn’t the end, it’s the process. And always focus on value that lasts.
Don’t build for Demo Day. Build for the day when your solution becomes indispensable to your customers, even ten years from now. That’s how you create enduring companies.
The post “Don’t build for Demo Day”: Zhang Fan on the enduring truths of entrepreneurship in the AI era appeared first on e27.