Andrew Chung: Founder of 1955 Capital
It’s fair to call Andrew Chung, founder of 1955 Capital, invested in the world’s future. The future is sustainability; every industry in the modern world is looking for more sustainable technologies. Andrew Chung has been investing in future technologies and companies developing sustainable technologies for more than 20 years.
Before launching 1955, Mr. Andrew Chung worked at Khosla Ventures, a venture capital firm that did much the same thing Chung does today. Khosla didn’t only invest in sustainable technologies, but that was Chung’s specialty. As one of the company’s six partners, Andrew Chung oversaw more than $500 million in assets.
As amazing as Chung’s career has been, his San Francisco company recently hit a rough patch when two Chinese investor firms tried to invalidate contracts they’d made with 1955 Capital. China Fortune Land Development and Global Industrial Investment Ltd. Agreed to invest $200 million in Chung’s firm’s fund, but back out just after CFLD made its initial investment.
CFLD tried to get its initial $80 million investment back in court, but the arbitrator overseeing their case sided with 1955. The two Chinese investors continued accusing and attacking 1955, and eventually, the case went all the way to a federal court judge in San Francisco. The court judge then agreed with the arbitrator, stating that CFLD and GIIL not only breached their contracts with 1955 but acted in bad faith.
1955 and Chung were excited by the court result, but according to Robert Varian of Orrick Herrington and Sutcliffe LLP, no one was surprised by that outcome. With that particular case closed, 1955 is seeking additional compensation with a counterclaim against CFLD and its subsidiary GIIL for, among other things, repeatedly acting in bad faith.
Though 1955 did not get the whole $200 million investment, the court ruled that the $80 million initial investment can continue being used for investment. Chung announced they his company plans to continue using the funds for that reason, as the investments have been doing well; there’s no reason to stop.
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