Former Alibaba Group CEO Joins Prominent Chinese VC Firm

Daniel Zhang, the former CEO of Alibaba Group, has embarked on a new chapter in his career by joining China-based venture capital firm Firstred Capital as a managing partner. This move comes six months after his departure from the renowned Chinese tech giant Alibaba.

In his new role at Firstred Capital, Zhang is set to lead initiatives aimed at "exploring a new future for merger and acquisition funds," as announced by the firm on its WeChat account. This signals Zhang's intention to leverage his extensive experience and expertise in the technology and investment sectors to drive innovation and growth in the realm of mergers and acquisitions.

   Zhang's decision to join Firstred Capital underscores the increasing importance of venture capital and investment activities in driving technological innovation and business expansion in China. His strategic leadership and deep understanding of the Chinese tech landscape are expected to contribute significantly to the firm's objectives of identifying and nurturing promising investment opportunities. 

     As managing partner, Zhang will play a pivotal role in shaping the firm's investment strategy and guiding portfolio companies towards sustainable growth and success. His track record of leadership and strategic vision positions him as a valuable asset to Firstred Capital as it seeks to capitalize on emerging opportunities in the ever-evolving tech ecosystem.

      Overall, Zhang's appointment at Firstred Capital marks an exciting new chapter in his illustrious career, highlighting his continued commitment to driving innovation and fostering entrepreneurship in China's dynamic business environment.

     Firstred Capital, founded in 2019 by Liu Xiaodan, former chairman of investment company Huatai United Securities, aims to explore innovative avenues in merger and acquisition funds under Zhang's leadership. While relatively new, the firm has demonstrated interest in diverse sectors, including semiconductor technology and healthcare for humans and animals.
Zhang's extensive experience, spanning 16 years, brings invaluable insights and strategic acumen to Firstred Capital. Notably, during his tenure at Alibaba, Zhang played a pivotal role in pivotal developments, including the transformation of Tmall into a mobile app and the conception of the groundbreaking "Singles Day" event on the platform.

       With Zhang's appointment, Firstred Capital is poised to capitalize on emerging opportunities in the Chinese investment landscape. His expertise in technology, innovation, and strategic leadership is expected to drive the firm's efforts in identifying and nurturing promising investment prospects, ultimately contributing to its growth and success in the dynamic Chinese market.
Daniel Zhang, affectionately known as "the free-spirited one" during his time at Alibaba, rose through the ranks to become the firm's group CEO in 2015, succeeding Jack Ma. However, his journey at Alibaba took an unexpected turn when he stepped down from his role in June 2023. Initially slated to continue leading Alibaba Cloud Intelligence Group, the firm's computing services arm, Zhang surprised many by departing from the company altogether in September 2023.

       Zhang's departure coincided with Alibaba's significant restructuring efforts, which commenced a year prior amid mounting competition from rivals like PDD (Pinduoduo). As part of the restructuring, Alibaba announced plans to divide its operations into six distinct business units, with intentions to pursue individual IPOs for each unit. However, the company faced setbacks, including the shelving of plans to list its logistics arm and grocery chain in November 2023.

       The restructuring underscored Alibaba's efforts to adapt to a rapidly evolving market landscape and maintain its competitive edge in the face of intensifying competition. Zhang's departure, while unexpected, marked a significant transition period for Alibaba as it navigated strategic changes and sought to position itself for future growth and success.