In this ION Influencers fireside chat, Steven Wang, founder and CEO of Highlight Capital, discussed the evolution of healthcare investing in China, the rise of true innovation, and the future of biotech and medtech amid the convergence of AI, robotics, and capital markets.

1. From Biochemist to Venture Capitalist

Steven shared his academic and professional journey—from studying biochemistry at NYU and earning his MBA at the London Business School to working at Becton Dickinson and Lehman Brothers before returning to China in 2007. In 2014, he founded Highlight Capital, a healthcare-focused venture capital firm that has witnessed over a decade of transformation in China’s biotech and medtech sectors.

2. The Three Phases of China’s Healthcare Evolution

Steven outlined the three major phases of China’s healthcare industry:

1. Learning Phase – Chinese firms replicated Western technologies (CT scanners, ultrasound machines, generics).

2. Engineering Innovation Phase – Companies began adapting Western products for the local market through cost-efficient engineering.

3. True Innovation Phase – Today, Chinese biotech and medtech startups are developing original IP, with some outperforming Western peers in clinical data and efficacy.

“We’re seeing a deep-shift moment in China’s healthcare market,” said Steven. “Over 40% of BD deals now originate from China.”

3. Regulation and the Rise of Local Innovation

China’s regulatory ecosystem has matured from Soviet-style procedures to FDA-aligned frameworks, and now, in cell and gene therapy, is forging new regulatory paths. Regulators are increasingly collaborating with scientists and industry leaders to keep pace with frontier innovation.

4. The Role of Highlight Capital

Highlight Capital’s strategy blends scientific expertise with market timing. Steven emphasized balancing young, tech-savvy hires with experienced investors who understand capital cycles—knowing when to “be conservative or aggressive.”

“If I applied for a job at my own firm today, I wouldn’t get in,” he joked, highlighting how quickly knowledge in biotech evolves.

5. What Makes a Great Hire—and a Great Founder

Highlight Capital looks for:

• Cross-disciplinary talent (AI + biology + commercial acumen)

• Team players with low ego and high curiosity

• Founders with innate courage, resilience, and the ability to keep trying despite failure

“Some traits can be trained; others—like courage—are born,” Steven said.

6. Investment Frontiers: AI + Robotics + Healthcare

Steven is particularly excited about AI-driven healthcare and robotics that improve patient mobility and care delivery.

He illustrated how falling costs in sensors and radar (thanks to autonomous vehicles) make robotic aids for disabled individuals commercially viable—showcasing how cross-industry convergence sparks new healthcare opportunities.

7. Spotting the Right Time to Invest

Timing is crucial:

• Too early, and investors risk heavy losses.

• Too late, and valuations soar.
  Highlight Capital looks for “adjacent industry readiness”—when technologies mature and costs drop in one field (e.g., automotive), they become investable in another (e.g., healthcare robotics).

8. How to Stay Close to Innovation

Steven’s team reviews 3,000 founders annually, narrowing it to 300–400 personal meetings. This constant founder engagement helps the firm map cross-sector synergies and spot emerging trends organically.

“Innovation is not drawn in a study room—it’s discovered in the field,” Steven emphasized.

9. Exit Strategies: IPOs Still Dominate

With 32 IPOs to date, Highlight Capital continues to favor public listings (≈60% of exits) for higher returns. M&A deals (≈40%) provide stability but more modest returns. Steven likened IPOs to “B2C excitement” versus M&A’s “B2B professionalism.”

10. China vs. the U.S.: Dual Engines of Global Innovation

Steven believes the U.S. and China will remain the twin engines driving global healthcare innovation for the next 10–20 years, powered by deep talent pools, supportive ecosystems, and strong capital markets.

He noted that founders’ mobility—between China and the U.S.—is increasingly common and that healthcare innovation transcends geopolitics.

“Healthcare is global. The pursuit of longevity and health is universal.”

Key timestamps:

00:08 Introduction to the Fireside Chat
01:45 Identifying Niche Markets in Healthcare
04:07 Challenges in a Dynamic Market
05:58 Regulatory Framework and Its Evolution
08:48 The Changing Ecosystem in Healthcare
11:45 Hiring Trends and Talent Needs
15:03 Characteristics of Successful Founders
16:21 Current Investment Opportunities
20:46 Building Knowledge Through Networking
24:15 Future of IPOs and Exits
25:49 The Dynamics of the Secondary Market
27:25 Future Competitors in Technology
28:16 Global Healthcare Perspectives
28:56 Conclusion and Acknowledgments