Yan Han, Heart Capital: The Best Way to Deal with Change Is to Embrace It Wholeheartedly

On March 13, 2023, the Forbes China and Standard Chartered China signing ceremony and the inaugural Youth Entrepreneur Mentor Talk concluded successfully at F·HOUSE 1917 in Shanghai. Yan Han, founding partner of Heart Capital and a Forbes China Top 100 Venture Capitalist from 2019 to 2022, was invited to speak at the first session.

(From left to right: Lin Jingyi, General Manager of High-Net-Worth Client Department, Personal, Private and SME Banking at Standard Chartered China; Li Feng, Vice President of Standard Chartered China and Managing Director of Personal, Private and SME Banking; Yan Han, Founding Partner of Heart Capital; Zhang Qinglian, Group President of Forbes China; Wu Yingjian, General Manager of Public Relations and Partnerships at Forbes China Group)

| The Best Way to Respond to Change Is to Embrace It Wholeheartedly

Han began by reviewing China's development over the past five decades. Finding strengths within weaknesses and turning passivity into initiative through proactive transformation has been China's competitive edge amid epochal shifts. He believes that actively seeking change and adjusting in real time is both an investment methodology and a philosophy for life. From Microsoft engineer to McKinsey & Company consultant to investor, the arc of Han's career reflects his ongoing practice of introspection.

As an investor, one must anticipate market shifts and, equally important, embrace the evolution of entrepreneurs. Meeting exceptional people and growing alongside them is Han's core investment principle. In 2014, as the mobile internet wave surged, Han recognized the massive potential of industrial internet. If freight trucks across China could be connected through internet technology, it would catalyze a transformation in the nation's trunk logistics. Han joined forces with Zhang Hui, formerly of Alibaba's legendary "China Supply" sales force, and angel investor Wang Gang. Yunmanman was born. Han became the sole institutional investor in Yunmanman's Series A, backing the company seven times over eight years. With Full Truck Alliance's 2021 Nasdaq listing, Han added another $10 billion-plus company to his track record.

A year earlier, Xpeng Motors — another of Han's Series A bets — had reached its own IPO milestone. When it comes to identifying non-consensus value, Han brings distinctive experience: avoiding hot trends, thinking independently, and having the conviction to act are what allow an investor to capture the 1% of core assets that transcend cycles. In 2017, when the EV industry had barely taken shape in China, Han didn't hesitate to invest in He Xiaopeng, who had just left Alibaba to start his own venture. Being the first to spot non-consensus value and the first investor in core assets — this is Han's investment ethos. Over fifteen years, he has understood industries through people and seized opportunities through intuition. He firmly believes that "wholeheartedness" is the prerequisite for building something great.

The entrepreneurs who achieve such greatness are typically masters of "change" — they shatter industry boundaries and build commercial empires through relentless execution. As investors, one must embrace their "change" with the fluidity of water, growing together through transformation. Create value outward; cultivate yourself inward — this was the investment philosophy Han shared with the audience. When you develop the capacity to see your own inner self, you can recognize the distinctive brilliance of non-consensus creators. Finally, Han offered advice to the young entrepreneurs present: embrace change with your whole heart, see into yourself and others — the essence of entrepreneurship is creating non-consensus value.

| Facing Challenges, Moving Toward Spring

Following his talk, Li Feng, Vice President of Standard Chartered China and Managing Director of Personal, Private and SME Banking, exchanged views with Han on Standard Chartered's value proposition of "authenticity brings ease; resolve brings achievement." Han observed that in today's rapidly changing world, looking at the history of Standard Chartered, Forbes, and the broader business community, many capable leaders have already excelled at the level of "technique." The philosophy of "heart-mind," however, is just emerging. It is a wisdom that comprehends the whole through one part and runs through ancient and modern times. Whether facing challenges personal, familial, or corporate, only by being true to one's inner self can one achieve ease.

In the final fireside session, when Wu Yingjian, General Manager of Public Relations and Partnerships at Forbes China Group, asked about future investment strategy, Han emphasized the principle of "rooted in China, going global." From a macro perspective, Heart Capital hopes to achieve domestic-international dual circulation based on China's internal economic cycle. From a brand vision perspective, it aims to accompany more outstanding Chinese entrepreneurs onto the world stage. As an early-stage investment institution focused on technology and digitalization, Heart Capital also hopes to support young entrepreneurs from a globalized perspective.

Founded in 2022, Heart Capital is a China-based early-stage venture capital fund focused on technology and digitalization, established by Yan Han, formerly founding partner of Lightspeed. The Heart Capital team comprises founding partners, the CFO, and core investors from Lightspeed, alongside seasoned industry investors from Cainiao and Baidu. The team's past investments include Series A investments in Full Truck Alliance (NYSE: YMM), Xpeng Motors (NYSE: XPEV, HK: 09868), as well as FinVolution (NYSE: FINV), 06810.HK, RoboSense, World Logistics, LandSpace, Lanhu, Micro-nano Starry Sky, Starfield, and others. Rooted in China with a global outlook, Heart Capital is dedicated to finding world leaders who will disrupt the future. The firm champions the value of "people" and "heart," and looks forward to accompanying more young Chinese entrepreneurs onto the world stage.