Thread by @ruima

So @ycombinator just announced pulling out of China (yes, right after Demo Day of first batch). I had actually heard this rumor a few months ago but now it’s official, Lu Qi has set up his own fund, MiraclePlus, which will do seed & Series A in China.

mp.weixin.qq.com/s/aC5IVmPADMEl…

Some interesting notes from the interview above w Lu Qi:

1) new YC CEO Geoff Ralston significantly more conservative re: China than Sam Altman.

2) Sam was prev spearheading fundraising for YC China, after he left, Lu says it’s slowed down a lot, despite his own credentials.

3) YC HQ wanted to retain full control & this kind of centralization didn’t make sense for YC China which was to be “by China, for China, of China”

4) US still doesn’t get China. ie YC sent Lu a US reporter who asked: “why r u doing this? How can China have innovation?” 🤦‍♀️

5) Lu says he’s willing to commit 15 yrs to MiraclePlus.

6) For sure poor US-China relations was part of this, he mentions “US media risks,” diff of opinion on PR in list of reasons for separation. (Not surprising to me. Thx media.)

I have mixed feelings abt this, but mostly think it’s a lost opp as more cooperation would have been better for the world. But, pretty sure that will still happen, there are many avenues for doing so now, just won’t be through YC officially. 😢

Lu is saying MiraclePlus will play “cofounder” role in investments. Like a PhD advisor to PhD. Do you think that makes sense?

PS We did an episode on him when @TechBuzzChina first started and he left Baidu:

pandaily.com/ep-8-lu-qi-bai…

Finally, who’s the reporter that asked Lu “how can China have innovation?” Are you just a troll or actually that unaware? Or do you have some definition of innovation that I don’t understand?

4 letters for you: MDZZ.

To be more precise, YC is ending YC China, which was a separate program from YC SV, not stopping investments in Chinese companies who apply and get into its SV program.

Looks like Lu’s fund has closed at $100mm USD, with money from his friends / usual suspects: Masa, Sequoia China, Northern Light, Hillhouse. He’s still raising RMB.