Fusion Fund IV Announcement
Fusion Fund Marks Its 10th Anniversary by Announcing Fund IV to Fuel the Next Era of Technology Innovation
Lu Zhang, Founder and Managing Partner, leads her team in closing $190M for Fusion Fund IV to invest in top technical founders building transformational businesses. Leveraging a decade of experience and a proven track record, Fusion Fund IV aims to shape the future of technology with investments in healthcare, enterprise AI, and industrial automation.
March 6th, 2025
Fusion Fund has officially announced its fourth early-stage venture capital fund, Fusion Fund IV, aiming to address the critical challenges and opportunities arising from rapid digitalization across healthcare, enterprise, and industrial tech. With $190M in committed capital, Fusion Fund IV builds on the success of Funds I, II, and III by focusing on next-generation technology and AI solutions to meet the rising demands for efficiency and scalability across industries. This new fund, which was heavily oversubscribed after less than six months of fundraising, underscores Fusion Fund’s value proposition in the early-stage venture capital landscape.
Building On Strong Early Traction
Founded in 2015 by Managing Partner Lu Zhang, Fusion Fund has consistently supported technically driven entrepreneurs leveraging data and technology to redefine industries. Many companies across the portfolio have experienced dramatic growth in the past two years, further reinforcing Fusion Fund’s position as a key player in the early-stage venture ecosystem.
Fusion Fund IV builds on this legacy, bringing the firm to over $500M in total assets under management. The fund’s LP base is comprised of a diverse cohort of institutional LPs, including endowments, foundations, sovereign wealth funds, large corporates, fund-of-funds and strategic family offices. Securing an oversubscribed fourth fund in half a year from this institutional base, including many returning LPs from previous funds, is a powerful testament to the team’s proven track record of success.
Investing With a Team of Technologists, Operators, and Industry Leaders
Founder & Managing Partner Lu Zhang has extensive experience bringing a broad range of technologies to commercialization and deep domain expertise in AI in healthcare, AI infrastructure/networks, edge computing, and deep tech. A first-generation immigrant from Inner Mongolia, Lu Zhang is a serial entrepreneur who began her career as a researcher earning her graduate degree in Materials Science and Engineering from Stanford. After successfully exiting her startup, her track record as an angel investor, including 4 IPOs, led her to create Fusion Fund in 2015. Since then, she has built a distinguished ecosystem, assembling a top-tier investment team of technologists, operators, executives, and founders.
Partner Shane Wall brings over two decades of experience in technology and innovation. As the former Chief Technology Officer at Hewlett-Packard, he led global research and development and was head of HP Labs. He is also a serial entrepreneur and serves as a board member of several private and public companies. Previously, Shane served on the U.S. President’s Council of Advisors on Science & Technology at the White House, contributing to national science and technology policies. At Fusion Fund, he oversees the influential Fusion CXO Network and focuses on investments in industrial automation companies.
Investment Partner David Gerster, with over fifteen years of experience in machine learning and data science at high-profile technology organizations such as Yahoo, Microsoft, and Groupon, is focused on investment in enterprise AI companies. Investment Partner Ivneet Bhullar, with advanced degrees in bioengineering and business from UCLA and Harvard, and over a decade of experience in biotechnology research and innovation at Genentech and Amgen, specializes in healthcare investments.
The team is rounded out by a roster of junior investment team members and venture partners that all bring strong backgrounds across technical disciplines and rich industry expertise. This is by design as the team has been constructed to include technologists and former entrepreneurs that embody Fusion’s startup DNA and bring complementary industry backgrounds that help accelerate portfolio commercialization and growth.
Targeting AI’s Next Frontier with Dynamic Sourcing and a Research-Driven Approach
Fusion Fund’s dynamic sourcing channels leverage multiple key networks to identify and support high-potential ventures. The annual Fusion VC Fellowship, now in its fourth year, equips top graduate-level talent in technical fields with skillsets in sourcing and evaluating, enhancing the firm’s access to emerging innovations. The exclusive Fusion Super Founder Network, composed of accomplished serial entrepreneurs with successful exits, serves as a proprietary source for groundbreaking ideas at their earliest stages. Fusion Fund also leverages strong relationships with leading tech innovation centers and a thesis-driven sourcing approach, supported by a proven track record of publishing timely industry research reports. This strategic framework enhances its ability to anticipate market trends, identify high-potential opportunities, and stay at the forefront of innovation.
Since its inception in 2015, Fusion Fund has been an early pioneer in AI – driving thought leadership, investing in early leaders, and incorporating it internally to optimize operations within the firm. Over the past decade, the firm has proactively analyzed key verticals, publishing industry reports on emerging areas like Edge Computing, Network Security, and AI in Healthcare back in 2018-2020, long before they became the consensus-driven hot sectors of today. The firm also began building its own internal AI tools in 2018, which have now matured to be “Ada,” the AI analyst that supports everything from stealth mode deal sourcing to market trends analysis.
With AI development costs soaring and energy consumption a crucial factor, Fusion Fund IV’s strategy zeroes in on solutions leveraging next gen AI tools and infrastructure for industry applications. Fusion Fund IV will deepen the firm's integration of cutting-edge research into its investment strategy, leveraging proprietary analyses to anticipate and capitalize on emerging market trends. The fund has recently published industry reports on Digital Biology, AI Infrastructure, Space Tech, and FinTech, reinforcing its commitment to identifying the most transformative AI applications. By driving thought leadership, Fusion Fund continues to shape its investment approach, solidifying its position as a leader in AI innovation.
Building a Thriving Ecosystem to Catalyze Portfolio Growth
As the broader market catches up to the AI trend, Fusion Fund continues to stay ahead of the curve by expanding thought leadership into new areas with the support of the ecosystem it has cultivated over the past decade. This mature ecosystem has been curated with the goal of supporting early-stage founders with the most critical aspects of company-building: early market validation and access to high-level industry leaders and top-tier talent.
The Fusion CXO Network, which includes more than 45 Fortune 1000 executives, connects portfolio companies to key industry leaders, enabling early commercial traction and strategic partnerships. This elite network, first established in 2018, continues to thrive by convening regularly on topics such as ROI measurement for AI, cost-efficient infrastructure, enterprise security, and the regulatory implications of the U.S. presidential election. The Fusion Expert Network enhances this ecosystem with specialized advisory support and deep technical expertise from more than 50 industry leaders and technologists, including experts from Meta, Tesla, Google, and Amazon. These combined efforts position Fusion Fund as more than just an investor — it is a strategic partner providing unparalleled expertise, market insights, and growth opportunities that drive lasting impact for its portfolio companies.
A Decade of Building, A Future of Scaling
The world is evolving at an unprecedented pace, demanding that founders be more agile, strategic, and resilient than ever as they navigate ongoing macro uncertainty. True innovation requires bold visionaries who are not only capable of adapting but committed to building transformative businesses that redefine industries. With a likeminded approach, Fusion Fund is dedicated to partnering with such founders — those who dare to push boundaries and create lasting impact.
Much like the startups it supports, Fusion Fund has operated with an entrepreneurial mindset — constantly evolving, iterating, and scaling. As it approaches its 10th anniversary, the firm now enters its next phase of hypergrowth, leveraging a decade of experience to accelerate innovation at an even greater scale. With a seasoned team, an expansive network, and a disciplined investment strategy, Fusion Fund IV is poised to lead the next era of AI and deep tech advancement. By championing visionary entrepreneurs and fostering collaboration, Fusion Fund is not just shaping industries — it aims to create lasting value and build an enduring platform to support innovation for many decades to come. The journey has only just begun.
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