A Small Woman's Big Dream: The Ten-Year Investment Journey of Zheng Yufen, CEO of YUEIN Healthcare Fund

“This industry is developing at an astonishing pace. You must grow with the tenacity of wild grass, striving to become mature, professional, and capable of working independently as quickly as possible.” — Zheng Yufen

After graduating with her master’s degree, a slightly inexperienced Zheng Yufen landed her first job at DFJ. During her two years at the firm, she covered a broad range of sectors, including healthcare, TMT, and e-commerce, as she was still new to the investment industry.

For Zheng Yufen, her true growth occurred during her five years at Zero2IPO. When she first joined Zero2IPO Capital, she was an obscure project manager. As a newcomer to the workforce with less than two years of industry experience, her understanding of the sector and her professional network were still in their “primary stage of socialism.” Despite her limited experience, Ni Zhengdong, CEO of Zero2IPO Capital, provided her with significant room for development.

“First, he doesn’t restrict what I do, allowing me the freedom to explore my projects. At the same time, he has provided me with an excellent platform,” said Zheng Yufen. Zero2IPO Capital engages in research, capital services, and conference exhibitions, boasting a highly diversified business portfolio. Moreover, Zero2IPO Capital enjoys extensive industry connections and a prominent reputation. This exceptional environment for professional development has enabled her rapid growth.

In wuxia novels, the protagonist’s transformation from an ordinary person into a legendary martial arts master is always accompanied by extraordinary experiences—such as stumbling upon a secret martial arts manual in a cave or being chosen as a disciple by a peerless master. As a “heroine” of the investment world, Zheng Yufen naturally had her share of such “plot twists.” At that time, Zero2IPO Capital had numerous projects that required evaluation by experts from lead-investment funds. Through this process, Zheng Yufen gained valuable opportunities to learn from and observe industry titans such as Zhou Quan of IDG Capital and Yan Yan of SAIF Partners. Their perspectives and judgment on projects rapidly elevated Zheng Yufen’s investment acumen.

Of course, to become a legendary “master” in the investment world, guidance from mentors is important, but long-term training and accumulation are equally crucial. Zero2IPO Capital annually selects the Top 50 Most Investable Companies. Over these four years, extensive project experience has allowed Zheng Yufen’s investment prowess to “level up” dramatically. Speaking candidly about this, Zheng Yufen stated, “Nowadays, I can form an initial assessment of a project within just ten to twenty minutes. This capability stems from the vast amount of project screening and interviews I have conducted in the past.”

Zheng Yufen’s tenure at Zero2IPO Capital laid the foundation for her entry into the industry. However, it was at Qiming Venture Partners that she truly developed her own investment style. Two other partners at Qiming are seasoned investors in the healthcare sector, and their approaches to company evaluation and post-investment management significantly influenced the formation of Zheng’s investment philosophy and style during their collaboration.

During her two years at Qiming Venture Partners, Zheng Yufen engaged in continuous reflection, questioning what investment style truly suited her and what she genuinely aspired to achieve—a period of pain and struggle akin to the metamorphosis of a butterfly emerging from its cocoon. Through this gradual and subtle process, Zheng Yufen developed her own comprehensive investment framework for the healthcare industry.

She told reporters, “I majored in bioengineering. As a science student, I have a natural affinity for new technologies. Perhaps it is this original aspiration that has shaped my investment style to favor emerging areas in healthcare. If a company possesses unique capabilities and proprietary technologies within its field, I can help it build commercialization strategies. This type of collaboration is what I truly seek.”

After rediscovering her “original aspiration,” Zheng Yufen resolutely resigned from Qiming in May 2015, determined to create a new platform of her own to realize her investment philosophy and fulfill her life’s value.

“Yueyin” derives from the phrase in The Morgan Family Biography: “Words as covenant, handshakes as seal.” Zheng Yufen named her company “Yueyin” to inspire its employees to act with integrity and mutual trust, walking side by side with entrepreneurs in the healthcare sector to jointly achieve remarkable success.

When asked why she founded the Yuyin Medical Fund, she replied without hesitation, “Follow my heart! Follow my dreams and aspirations!” The reason may seem simple, but it is powerful enough.

Investors often have different investment philosophies and styles, even when working at the same platform. Zheng Yufen not only favors emerging healthcare sectors but also prefers investing in early-stage projects such as those in Pre-A, A, or B rounds. The sense of involvement in early-stage ventures allows her to work alongside entrepreneurs to turn ideas into practice and industrialize products. Rather than simply reaping the rewards, she seems to enjoy the process from planting the seeds to seeing them blossom and bear fruit.

In late May 2015, Zheng Yufen officially left Qiming Venture Partners and began preparing to establish her own company on June 1. She obtained the business license on June 17. Recalling that period, she said, “At that time, the company consisted only of myself and my assistant, who helped me on a part-time basis. Therefore, I was effectively the sole full-time employee.”

Starting a business is arduous, with the initial phase being the most challenging. In the first half of 2016, Yueyin Medical Fund was affected by the “capital winter” while raising its second fund. Last year, amid a sharp decline in the secondary market and China’s economic transition, many funds found it difficult to raise capital in the short term.

But for Zheng Yufen, who grew up in Jilin, Northeast China, and was accustomed to ice and snow, the "capital winter" was no insurmountable barrier to her progress. From that point on, Zheng switched into "Super Girl mode," embarking on a frantic, round-the-clock work sprint that lasted three months.

At that time, she worked an average of 13 to 14 hours a day, with 15-hour days being commonplace. She met with limited partners (LPs) and fund-of-funds managers nearly every day, pitching the philosophy of Yueyin Medical Fund and showcasing its previously successful projects. She appealed to their emotions and shared her vision, employing every strategy at her disposal. One late night, upon returning home, Zheng Yufen felt severe discomfort in her throat. To her surprise, she coughed up blood. The phrase “spitting blood from overwork” was no exaggeration. It was in that moment that she truly grasped the hardships of entrepreneurship for the first time.

After enduring the darkness before dawn comes the light. Through relentless day-and-night efforts and with the support of friends in the industry, Zheng Yufen’s Yueyin Medical Fund has successfully completed its capital raising. Reflecting on this journey, she remarked with deep emotion, “Looking back, we endured the most difficult phase, and I am filled with mixed feelings. Fortunately, our hard work did not go in vain; we ultimately gained recognition from all parties and successfully closed the fundraising for our Phase II fund. Yet, the process was truly too painful to recall!”

After more than a year of development, Yueyin Healthcare Fund has grown from a one-person operation led by Zheng Yufen to a team of eight full-time professional investors. The team comprises healthcare entrepreneurs, top-tier talent from Fortune 500 companies, as well as PhDs from Peking Union Medical College and master’s graduates from Peking University—all of whom are elite professionals in the industry.

Speaking of her staff, Zheng Yufen appeared deeply gratified: “I never regard them as my employees, because we are like one big family; they are my family!”

Zheng Yufen rarely works in her own office, as she prefers being with her employees, which brings her greater joy and makes work more engaging. “We dine together and discuss both work and life. Although there are few rigid rules or constraints, everyone is genuinely motivated to do their jobs well, willingly putting in extra effort and taking on more tasks in the hope of bettering themselves.” As she spoke, Zheng Yufen’s face lit up with a warm smile.

Yueyin Medical Fund is a startup where employees have left high-paying positions at large corporations to join. They are drawn by the desire to receive rigorous investment training and master effective investment methodologies, thereby fostering their professional growth. Recognizing this, Zheng Yufen frequently provides hands-on guidance to her team on conducting due diligence. She spares no effort in sharing every detail of the process, covering all aspects including legal and financial matters. She firmly believes that when treating colleagues like family, one must be fully committed, as this reflects mutual recognition and trust.

“Yueyin Medical Fund aims to become the premier healthcare investment firm in China,” declared Zheng Yufen, setting this as her personal mission. Not only must she excel, but her colleagues must be even more formidable. This team of post-80s professionals is determined to achieve something extraordinary during the prime of their lives!

For “Yueyin people,” their daily work is a career to which they are willing to devote themselves entirely, rather than merely completing tasks to meet KPI assessments. Although Yueyin Medical Fund stipulates working hours from 9:00 AM to 6:00 PM, “Yueyin people” voluntarily arrive at the office at 8:00 AM and leave at 10:00 PM every day. They all adhere to a common principle: to become renowned investors in the industry, to identify and invest in outstanding companies, and to ensure no potentially successful enterprise is overlooked.

To become the top-tier healthcare investor in China, profound knowledge is an essential competency. For “VCBeat professionals,” weekends are even more critical to leverage; during those two days, they devote substantial time to studying and researching cutting-edge professional medical knowledge. They are well aware that only through this approach can they engage in dialogue and exchange with entrepreneurs on an equal footing.

Although Zheng Yufen is relatively lenient with rules and regulations, striving to allow employees the freedom to pursue their own initiatives, she maintains rigorous standards for professional competence. Even a single typographical error, an inaccurate data point, or tardiness to a meeting incurs a fine of 100 yuan. This reflects her steadfast commitment to and high regard for the professional integrity expected of an investor.

In some projects reviewed by the Investment Committee, if employees failed to work with sufficient diligence or omitted critical details—for instance, if a project had already been submitted for committee approval yet still harbored blind spots or key areas that had not been adequately covered during due diligence—Zheng Yufen would not tolerate such errors. She would reprimand the responsible staff members mercilessly; although she watched tears well up in their eyes, she herself felt reluctant to be so harsh.: “This industry is evolving at an astonishing pace. You must grow with the tenacity of wild grass, accelerating your personal growth, maturity, and professional development until you are capable of working independently.”

However, Zheng Yufen does not overly criticize or blame employees for biases and errors in their experiential judgments. Instead, she uses case studies to help them understand the industry’s market conditions and development stage, as well as the reasons for deciding not to invest in a particular company. Through accumulated experience and continuous retrospective reviews, employees ultimately gain a deeper understanding of the projects.

The venture capital industry resembles a master-apprentice relationship. It is normal for apprentices to make mistakes; what matters is the nature of those errors. Therefore, Zheng Yufen aims to guide him to minimize and avoid mistakes, thereby accelerating his professional growth.

Since last May, Yinying Medical Fund has completed investments in numerous companies. The two most representative portfolio companies are Genetron Health, which focuses on precision cancer treatment, and Lancet Doctor, a domestic leader in leveraging 3D interaction and VR technologies to enhance surgeons’ operative skills.

In April 2015, Genetron Health was officially established. The company is dedicated to providing health management products that cover all stages of cancer diagnosis and treatment—including risk assessment, early screening, molecular diagnostics, and postoperative monitoring—to assist medical experts and research institutions in delivering reliable molecular diagnostic solutions and professional cancer genetic risk assessments for cancer patients, high-risk individuals, and the general population.

Currently, Genetron Health has established an internationally advanced, diversified molecular testing technology platform and a bioinformatics analysis platform. The company has set up dual R&D centers in North Carolina, USA, and Beijing, China, and has built clinical medical laboratory testing centers in Beijing, Shanghai, and Hangzhou, with a total area exceeding 8,000 square meters.

Since its inception, Zheng Yufen has been involved as an individual angel investor, participating in all aspects of the company’s legal structure and strategic planning. During the Series A financing round, Genobio received a RMB 35 million investment from Yueyin Medical Fund.

Lancet Guest, another company with a strong technological foundation, is among the earliest enterprises in China to specialize in virtual reality (VR). Possessing its own core technical capabilities, Lancet Guest serves Fortune 500 companies such as Johnson & Johnson and Medtronic. After investing in Lancet Guest, Yueyin Medical Fund collaborated with the company to develop a VR-based surgical training platform for physicians. This platform enables surgeons to immerse themselves in realistic simulations for learning various surgical procedures. Launched on June 5, the platform had already achieved over 20,000 downloads by August, earning widespread recognition from many surgical specialists.

Whether it is Genetron Health or Lancet Guest, Zheng Yufen has always believed that the development of China’s healthcare sector cannot be separated from the impetus provided by emerging fields and industries. True to the meaning of “Yueyin,” her greatest aspiration is to support such entrepreneurs, sharing risks and growing alongside them. Driven by this commitment, and aiming to understand the disparities between China and the United States in advanced medical technologies and to better steer future investment directions, Zheng Yufen embarked on a study tour to the United States this August.

After arriving in the United States, Zheng Yufen conducted visits to companies specializing in biopharmaceuticals, gene editing, immune cell therapy, and healthcare big data. She observed that the development direction of precision medicine in the U.S. is clearly defined, with targeted therapy and personalized treatment serving as core technological pillars. Regarding funding, Zheng learned from Boston that U.S. venture capital firms and Nasdaq-listed companies are currently concentrating their resources, channeling substantial investment into enterprises focused on targeted drug therapies and immunotherapies.

Zheng Yufen told reporters, “In addition to policy and funding, talent is also a critical factor. With support from dedicated funds such as those provided by the NIH, American researchers and top-tier talents can devote themselves entirely to research.” In some fields where practical applications appear difficult to achieve in the short term, U.S. researchers have conducted extensive foundational studies, laying a groundwork akin to building foundations that have solidified the entire field of precision medicine.

To learn more about Zheng Yufen’s trip to the United States, please refer to the previously published article by VCBeat.“Zheng Yufen, Founder of Yueyin Medical Fund: Three Lessons China Should Learn from the U.S. in Developing Precision Medicine”。

Her trip to the United States proved highly rewarding for Zheng Yufen, significantly broadening her horizons. When asked by reporters about the future plans of Yueyin Medical Fund, Zheng’s response was both confident and seemingly self-evident: “In the second half of this year, we will focus on areas that are poised to reshape the healthcare industry, such as medical big data and cancer immunotherapy. This also includes intelligent assistive devices for specific diseases, as well as adjunctive treatment protocols for post-stroke conditions, such as those following cerebral hemorrhage or cerebral infarction—all of which are fields with high entry barriers and substantial technological sophistication. Furthermore, Yueyin Medical Fund will pay closer attention to certain emerging niche subsectors.”

At present, although China’s startup ecosystem appears somewhat subdued under the chill of a capital winter, this has not hindered Zheng Yufen and her “Yueyinren” from pursuing their dreams. Zheng Yufen and the future healthcare sector she favors may well be embarking on a journey to transform healthcare in China.