FreeS Fund Sets Up Shop in Shanghai, New Office Now Operational

On May 24, 2019, FreeS Fund held a small salon at Shanghai Zhangjiang Startup Workshop to announce the official opening of its Shanghai office. Shanghai — once known as the "Ten-Mile Foreign Settlement," now China's largest economic hub — has long been the center of East China. The new office represented FreeS Fund's ambition to better discover and serve outstanding entrepreneurs in the region.

This was not a sudden decision. Since its founding in August 2015, FreeS Fund had invested in over 40 innovative companies in East China over the past three-plus years — roughly one-third of its total portfolio.

The East China portfolio included not only Three Squirrels, the omnichannel leader in nuts and snacks; Club Factory, the cross-border e-commerce company dubbed "India's Taobao"; and Shenma Finance and Shenma Mobility, which targeted China's lower-tier markets. It also featured a cohort of high-growth deep-tech companies: QingTao Development, a frontrunner in solid-state batteries; NextVPU, a leader in AI chips; and Singleron, focused on drug development and large-scale single-cell multi-omics analysis in the US. "Nearly half of the chip and healthcare companies we've invested in come from East China," said Feng Li, founding partner of FreeS Fund.

FreeS Fund partner and East China head Jiong Shen is an old Shanghai hand. Before joining FreeS Fund, he spent over a decade in investing, focusing on Pudong Zhangjiang's two pillar industries — semiconductors and biomedicine. He previously led the investment department at Shanghai Pudong Science and Technology Innovation Group, served as deputy general manager of Investment Division I at Puke Investment, and was business director at Zhangjiang Pharma Valley. His investment track record includes Huasu Pharmaceutical, Rendu Biotechnology, Fangxin Health, Innostar Bio, Advanced Micro-Fabrication Equipment (AMEC), and Ciyu Technology.

▲ Jiong Shen, Partner at FreeS Fund

Shen's arrival strengthened FreeS Fund's investment capabilities in semiconductors and biomedicine, enabling better integration of East China's venture capital resources and deeper partnerships. At the salon, Shen noted: "Shanghai is the hub of East China. A large number of excellent entrepreneurial teams gather here, and with the STAR Market launching in Shanghai last year, the market environment is improving. We are firmly bullish on Shanghai, bullish on East China, and bullish on technological innovation."

Another partner, Yongcheng Yang, was among China's first generation of mobile phone R&D engineers. Before joining FreeS Fund, he served as general manager of Baidu's hardware ecosystem channel division and vice president at Xiaomi. His addition would help FreeS Fund make earlier-stage bets in TMT and hard tech.

▲ Yongcheng Yang, Partner at FreeS Fund

In his remarks, Yang joked that his decision to join FreeS Fund was largely a natural attraction based on shared values. "Deep down, we all have an unshakable conviction: no matter what we do, no matter what we face, we still insist on knowing what to do and what not to do."

He also reflected on his transition from corporate executive to investor. "As an executive, you personally execute and achieve goals while helping the company realize value. Becoming an investor is a step forward — it carries even greater social responsibility. Because you're helping more entrepreneurs realize their dreams, helping more people create value for society, and of course also maximizing capital efficiency. That's what investing is."

At the salon, Feng Li also invited FreeS Fund operating partner Kun Gu to share his management experience. Before joining FreeS Fund, Gu was vice president at TAL Education's Sunlands subsidiary, overseeing sales and management for over 120 schools nationwide. Moving from an education organization with tens of thousands of employees to a lean fund, Gu shared his shift in management thinking: "Managing at a fund is less about 'managing' and more about 'guiding,' because everyone has strong self-drive. You can't simply apply big-company management methods — overemphasizing execution and alignment while neglecting feedback."

▲ Kun Gu, Partner at FreeS Fund

As FreeS Fund's RMB Fund I entered its exit period and Fund II moved into intensive investment deployment, Gu said the firm would provide more refined and systematic post-investment support to help portfolio companies grow.

Next, Rui Ma, investment vice president at FreeS Fund, delivered a presentation titled "Forward-Looking Market Analysis of Biomedical Investment," explaining the firm's investment logic in the sector. Over the past three years, FreeS Fund had invested in over 30 healthcare startups spanning new drug R&D, diagnostics, medical devices and consumables, and disruptive biotechnologies.

▲ Rui Ma, Investment Vice President at FreeS Fund

Additionally, as representatives of outstanding entrepreneurs from FreeS Fund's East China portfolio, Xinpeng Feng (CEO of NextVPU), Nan Fang (CEO of Singleron), and Rui Ning (CEO of Shenma Finance) shared the latest developments in their respective industries and their entrepreneurial insights.

▲ Three East China CEOs from FreeS Fund's portfolio sharing industry insights

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With the Shanghai office now officially operational, we will use it as a base to discover more outstanding entrepreneurs and unicorns in the Yangtze River Delta and across East China — China's most dynamic economic cluster.

Now, besides Beijing, we're waiting for you in Shanghai too!