Lu Zhang is a first-generation immigrant from Inner Mongolia who transitioned from materials science research and serial entrepreneurship in healthcare to venture capital, bringing unusually deep hands-on experience with both cutting-edge materials and regulated healthcare products compared to most generalist VCs. She has been among the earlier Silicon Valley investors to systematically publish and update a thesis on AI in healthcare dating back to around 2017, and continues to speak in detail about technical issues like explainability and regulatory fit in AI medicine.
What they've been talking about across their social media accounts

- Deep interest in the intersection of philosophy and technology, specifically the distinction between artificial intelligence and human consciousness. She frequently discusses how intelligence relates to problem-solving while consciousness involves feeling, arguing that investments in AI should be matched by efforts to understand the human mind to prevent technology from amplifying natural stupidity.
- A clear focus on Deep Tech and embodied AI, looking for startups leveraging cutting-edge hardware and software. She showcased this enthusiasm by introducing a robotics dog named Venus as a team member to demonstrate that the future of robotics is already present in daily life.
- Active thought leadership regarding the practical deployment of Large Language Models and data regulation. She publishes articles offering steps for startups to successfully deploy these models and speaks at major industry events like the Milken Institute Global Conference and Nvidia GTC to share insights on the ecosystem.
- Commitment to the sector of digital biology and healthcare innovation. She regularly highlights portfolio successes in medical technology, such as Subtle Medical, and writes about the opportunities found where biological sciences meet computational power.
- Strong emphasis on founder education regarding corporate governance and stability. She uses major industry news, such as leadership changes at OpenAI, as a teaching moment to stress the critical importance of board building and management skills for startup founders.
- Celebration of significant portfolio milestones and acquisitions. She actively promotes her founders' achievements, such as the acquisition of Paperspace by DigitalOcean and the inclusion of companies like You.com and Vectara in top generative AI rankings.
- Appreciation for scientific milestones and cost-efficiency in hard tech. She expressed admiration for the Starship launch, specifically noting the dramatic reduction in launch costs compared to traditional rockets, signaling an appreciation for fundamental economic shifts in industrial sectors.
About their Fund
Sectors
AI, Health, Enterprise, Deeptech / Hardware, Biotech
Rounds
Pre-Seed - Series A
Avg Check Size
$500K - $2.5M
Notable Investments
Fusion Fund backs early-stage technical founders building companies with defensible technical barriers in AI, advanced materials, and industry automation, with founder Lu Zhang bringing rare credibility as both a former deep-tech researcher and successful medical device entrepreneur. The fund specializes at the intersection of AI and highly regulated sectors like healthcare and industrial automation, maintaining a concentrated thesis on "deep tech + data moats" while growing from $15M to $500M in assets under management over a decade.
Other partners at the fund
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Notable Fund
Investments
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