The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch

20VC: Investing Lessons From Rounds In Peloton and Square, Why Great Investing is Stock-Picking and Sector Penetration & The Next Decade in Venture, Is Tiger's The Right Model with Hans Tung, Managing Partner @ GGV Capital

Sep 20, 2021

Hans Tung, Managing Partner at GGV Capital, shares his wealth of experience in venture capital. He discusses his transition from entrepreneurship to investing, shaped by witnessing market booms and busts. Hans analyzes today’s competitive venture landscape, emphasizing the importance of price sensitivity and market sizing. He reflects on lessons learned from backing giants like Peloton and Alibaba, often highlighting the misjudgments many investors make regarding market scope. His insights shed light on navigating the complexities of global investment opportunities.

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ANECDOTE

Netscape IPO Impact

Hans Tung's exposure to the early internet boom at Stanford influenced his career path.
Witnessing Netscape's IPO, despite its losses, sparked his interest in tech's potential.

INSIGHT

Downturn Resilience

Companies that survive downturns often emerge stronger.
Facebook and several other successful tech companies were founded during market downturns.

ADVICE

Consumer-Focused Investing

Invest in companies with consumer angles (B2C, C2C, B2B2C).
Understand consumer shifts and platform dynamics to advise founders effectively.

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Hans Tung is a Managing Partner at GGV Capital, one of the leading venture firms of the last 2 decades with a portfolio including Alibaba, Xiaomi, Peloton, Airbnb, Slack, and many more. As for Hans, he has been named to the Forbes Midas list nine consecutive years from 2013-2021, most recently ranking #3. His portfolio includes 18 unicorns including Affirm, Airbnb, Coinbase, Divvy Homes, Peloton, Poshmark, Slack, Wish and Xiaomi. In 2005, he was among the first Silicon Valley VCs to move to China full time, spending eight years investing in the fastest-changing tech landscape in the world before returning to Silicon Valley in 2013 to join GGV Capital.

In Today’s Episode with Hans Tung You Will Learn:

1.) How Hans made his way into the world of venture from founding his first two companies? How did seeing the booms and busts of the macro-financial markets impact both his investing mindset and the companies he likes to back?

2.) The Landscape: How does Hans analyze the current venture landscape today? How does one compete in a world of Tiger and crossover funds writing term sheets post first meeting? How does Hans think about his own price sensitivity today? How does he determine when to pay up vs when to say no? What have been some of his biggest lessons on price?

3.) Working with the likes of Peloton, Square, Alibaba, what have been some of Hans biggest lessons on market size? What do most investors get wrong when it comes to market sizing? How does Hans think about an attractive enough exit multiple for a growth stage check? What did Peloton teach Hans about insertion points when investing?

4.) How does Hans think about when is the right time to sell? What have been some of his biggest lessons on taking cash off the table? Despite the success, how does Hans ensure he has the mental plasticity to approach every new deal with a fresh perspective? What does he do to ensure he does not have an unconscious bias from his past successes?

Item’s Mentioned In Today’s Episode with Hans Tung

Hans’ Favourite Book: Outliers: The Story of Success

Hans’ Most Recent Investment: JOKR