500 Global China Head: 24 Rules I Learned in the VC Industry
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500 Global China Head: 24 Rules I Learned in the VC Industry
For VC practitioners or newcomers planning to enter the VC industry.
Navigating Web3 tides with focused insightsThe author of this article, Ms. Stella Zheng (Si-Da Zheng), is the China Regional Director at 500 Global. Since 2017, she has represented 500 Global in investing in early-stage startups across China and managing its regional partnerships. As of 2022, she has invested in over 50 entrepreneurial teams in Greater China.
Preface
This is written for VC professionals or those who are considering entering the venture capital industry. The reality of working in VC may be quite different from what many people imagine. I hope my insights can be helpful to you.
1. This job is actually highly unstructured. Working in venture capital is not a particularly organized profession. If you join the VC industry straight out of school, it’s like being thrown into water before learning how to swim—basically, sink or swim… I personally went through a very painful and confusing period, unsure of how to properly start work and appear competent.
2. VC Pipeline = Access/Network + Judgment + Convincing. Ultimately, it's all about network. So always take initiative to meet new people.
3. At its core, VC is a service industry—simply put, your primary function is “sales.” You “sell” yourself and your fund’s brand to founders you’re excited about, convincing them to take your money. You “sell” your portfolio companies to potential users, buyers, talent, and investors. You “sell” your fund to potential LPs.
4. Have your own opinions, but don’t cling to them. Maybe I’m getting “older,” but I no longer bother arguing with people who hold different views. As long as I’ve effectively expressed myself, that’s enough. Voices without resonance will eventually fade—not because anyone is wrong, so there’s no need to insist on your own perspective.
5. Always maintain a mindset of learning, and don’t fear embarrassment. I’m not a technical investor, so I often don’t fully understand many technical aspects. Of course, for startups, technology is never the decisive factor. But I used to worry about asking unprofessional questions. Now I realize there’s nothing wrong with asking even seemingly dumb or basic questions. In fact, asking experienced people remains the fastest way to learn and understand an industry.
6. Question everything. Don’t believe every word you hear in this industry—even if it comes from so-called “big names”!!! Often, their statements quickly prove inaccurate... Avoid blind admiration. For entrepreneurs too, stay independent in thinking.
7. That said, when evaluating each project, first assume they could succeed. Hold no biases. In early stages, never look down on a product just because it seems overly simple—especially if it looks like a toy. However, by Series A and beyond, let data speak (assuming credible team and vision).
8. Therefore, be nice—to everyone.
9. Respect every founder. Never be late to scheduled meetings, and always consider others’ time and needs. In fact, many of our LPs today are founders I once backed—they later reinvested their returns into our portfolio companies or our fund.
10. No one can predict the future. Strong insight and networks do give access to cutting-edge information, but that doesn’t mean any of us can clearly foresee market directions. I’ve consulted partners at top-tier VCs and C-suite executives at unicorns, only to find that informational advantages aren’t as large as imagined. In fact, due to their established status and capital, some may lack hunger for new ideas—which is precisely why startups always have opportunities to disrupt big companies.
11. There are always old WeChat contacts who suddenly message me after years—maybe they’ve started a company? Haha.
12. No matter which VC firm you work for, always remember to build your personal brand.
13. Feedback loops in VC are extremely long. Typically, it takes four to five years before you have demonstrable success stories. Until then, no one knows how good you are, and almost no one gives you clear feedback—except your direct supervisor. So if you constantly need validation and recognition to feel confident doing your job, VC might not be the right fit for you.
14. Avoid gossiping as much as possible. This industry is small—staying away from drama is wise.
15. You can use public social media (like Twitter) to reach out to founders you want to connect with, but don’t rely on Twitter (or social media) to source deals! Social media creates illusions and FOMO. Hype, FOMO, and competition among multiple VCs often lead you to invest in companies at valuations they don’t deserve. These companies typically experience value correction over time.
16. Market noise will never disappear—clarify your own strategy and stick to it consistently.
17. Always walk alongside the “right” people. VC truly involves dealing with people every day. Pay far more attention to founders than to the projects themselves.
18. Building on the above—the most important “right person” is always yourself. So cultivate a strong personal image and reputation, strategically build relationships with trustworthy individuals—you may well end up collaborating or working together in the future.
19. When you need to say no, do so directly. Don’t send false signals to founders. Don’t waste each other’s time or offer insincere responses.
20. Some founders are exceptionally skilled at answering investor questions—they’re very smart—but that doesn’t necessarily mean they can build great, successful companies.
21. Following up: avoid wasting time on talkative individuals. Instead, spend more time doing practical, concrete things—those efforts accumulate real value over time.
22. Regarding startup evaluation: for most early-stage VCs (I mean pre-Series A), 90% of focus should be on team, product, and market; only 10% on specific metrics. See previous articles for details.
23. Most VCs have extremely short attention spans—if a founder fails to capture investor interest within the first 5–10 minutes, the meeting likely won’t lead anywhere.
24. Most people in VC aren’t as glamorous as they appear… The VC industry is fascinating, but competition—both internal and external—is intense.
I still look forward to seeing more talented individuals join this industry! I hope to share more thoughts on Web3 and cross-border venture capital in the future—feel free to reach out and connect~
About 500 Global
500 Global is a venture capital firm providing early-stage funding to founders building fast-growing tech companies. We focus on markets where technology, innovation, and capital can unlock long-term value and drive economic growth. To date, 500 Global has invested in and supported over 6,000 founders representing more than 2,600 companies operating across 77 countries. Our portfolio includes 51 unicorn companies and 125 emerging unicorns. With team members spread across more than 15 countries, we bring together the experience of entrepreneurs, investors, and operators from leading global companies.
- We are committed to changing the world through entrepreneurial innovation! -
- Our Mission is to Uplift People and Economies through Entrepreneurship! -
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