Lilly Chen’s journey to becoming the co-founder and CEO of FSH Technologies, a Philadelphia-based company revolutionizing government software, is anything but conventional. Her path diverged dramatically at 16, when a severe battle with Graves’ disease led to repeated hospitalizations and her mother’s desperate suggestion: move to China and become monks. Frustrated and disillusioned with the fragmented care her daughter received through Medicaid, Chen’s mother sought a radically different approach to healing, one rooted in spiritual practice and a profound disconnection from modern life. This decision marked the beginning of an extraordinary transformation that would shape Chen’s worldview, her entrepreneurial spirit, and ultimately, her mission to tackle some of society’s most "unsexy" but crucial problems.

For nearly two years, Chen embraced the monastic life, first ordained in the United States and then immersing herself for several months in a remote monastery in China. This period was a profound departure from her previous existence. Gone were the distractions of technology and the pressures of conventional schooling. Her days were filled with meditation, quiet contemplation, and a disciplined routine. She consumed food grown on-site or brought by nearby villagers, connecting her intimately with the natural world and the simplicity of sustenance. Without internet access or external stimuli, her mind turned inward. She reread the handful of books she had brought with her, finding new insights and perspectives with each pass. This enforced introspection, combined with continued thyroid medication, allowed her physical health to stabilize and her mental clarity to return. It was a period of profound healing, both physical and spiritual, that laid the groundwork for her future resilience and unique problem-solving approach.

The pivotal moment to re-enter mainstream society came subtly. During her time in China, Chen had developed a deep attachment to her limited collection of books. A conversation with a fellow monk, who observed her devotion to reading, prompted a simple yet profound question: what did she enjoy about reading, and where might she find more books? The discussion naturally evolved to colleges and why a bright, inquisitive young woman like herself wasn’t attending one. Chen explained her past health struggles, to which the monk gently but firmly observed that she now seemed well. In that moment of clear realization, she understood he was right. Her health had become manageable, and a new chapter beckoned.

Returning to the U.S. with newfound determination, Chen homeschooled herself, preparing for college without the traditional high school diploma. Her academic aptitude and the compelling narrative of her unusual life path impressed Colorado College, which admitted her despite her unconventional background. She turned 20 during her freshman year, graduating in 2019 with a double major in mathematics and economics – a testament to her intellectual curiosity and rigor. During her college years, Chen also explored another unusual avenue: professional video gaming. She briefly played Dota 2 at a high level, even competing against OpenAI’s formidable game-playing bots. This early, hands-on encounter with advanced AI technology, long before it became a mainstream buzzword, gave her an intuitive understanding of its capabilities and limitations, a foresight that would prove invaluable in her later career.

After a brief stint in Boston, Chen joined Facebook (now Meta), a pinnacle for many aspiring engineers. There, she worked on building infrastructure essential for training AI models, gaining invaluable experience at the forefront of large-scale technology. However, the prestige and technical challenge began to wane in the face of a growing moral dilemma. The events of January 6, 2021, while she watched the attack on the U.S. Capitol unfold on one screen during a remote company all-hands meeting, served as a stark turning point. Her concerns about Facebook’s perceived role in enabling the organization and spread of violence reached a critical mass. "I realized that I couldn’t work for Big Tech anymore," she recalls, the weight of her conscience outweighing the allure of a lucrative and influential position.

Shortly after, she made the courageous decision to quit, without a startup idea or a clear next step. This period of uncertainty, however, mirrored her monastic introspection, albeit in a different context. She returned to fundamental questions: What truly made her happy? What mattered to her on a deeper level? What were her innate strengths and how could she apply them for meaningful impact? Programming remained her most concrete skill, a powerful tool she now sought to wield for purpose, not just profit. This quest for meaning led her to Envision, a student-run accelerator supporting non-traditional founders, which connected her with Contrary, a venture firm known for backing innovative companies like Ramp and Anduril Industries. Remarkably, Contrary wrote Chen her first check in 2021, long before FSH had fully formed its business model. Her earnest explanation of her motivations and her passion for solving significant problems, even without a polished company pitch, resonated deeply with investors. This early belief provided her with the crucial runway to experiment and refine her vision.

It was in 2024 that FSH Technologies fully took shape into its current form, focusing on the often-overlooked yet critical sector of government software. Jason Chen, the Contrary investor who first backed her, subsequently joined FSH as its chief operating officer, a testament to his continued belief in her vision and leadership. The company has since garnered significant investor confidence, raising a total of $25 million in funding, including a recent $20 million Series A round that, as Chen noted, came together in a remarkably swift week. This round saw participation from prominent investors such as Lachy Groom, General Catalyst, Ramp, Scribble Ventures, Operator Partners, and Basis Set Ventures, with Contrary also leading the seed financing.

Chen’s choice to tackle government software stemmed from a profound realization: this sector, often dismissed as "unsexy" or "boring" by Silicon Valley standards, held the potential to solve a myriad of consequential problems that directly impact the lives of everyday citizens. Permits, licenses, grant applications, and other administrative processes are notoriously slow and frustrating, not just because of outdated interfaces, but due to deep-seated systemic issues. Information often exists in siloed departments, and updating even a simple website can require a Byzantine maze of approvals from policymakers, communications staff, and IT teams. Chen argues that simply layering a chatbot over such a fractured system is akin to putting a band-aid on a gaping wound; it leaves the fundamental problems unresolved.

Her holistic approach to problem-solving within government is deeply informed by a profound lesson from her monastic past. One of her daily chores at the monastery involved feeding koi. Periodically, the head monk would pose a seemingly simple question: "Do you think you are the fish or the pond?" Initially, Chen struggled to grasp the meaning. But as the question recurred, she pondered it deeply. She eventually identified with a particular fish – one that avoided conflict, swam harmoniously with the group, yet occasionally ventured off on its own. The head monk’s response was definitive: "You’re the pond, not the fish." This exchange became a powerful metaphor for Chen, teaching her to look beyond individual components and understand the intricate workings of an entire system. Applying this wisdom to government software, she realized that true improvement required examining why information was scattered or processes were slow before deciding what technology to build. It meant understanding the underlying ecosystem, the "pond," rather than just focusing on the individual "fish" (e.g., a single problematic form).

FSH Technologies has strategically targeted areas where this systemic approach can yield significant results. One early focus has been K-12 school food services, a seemingly mundane but incredibly complex domain. Administrators must navigate intricate tasks including coordinating meal planning, tracking nutritional information for diverse student needs, managing inventory, and ensuring compliance with stringent federal reimbursement requirements. Another critical area is records and archive management, a realm still heavily reliant on antiquated paper documents that often necessitate residents physically visiting a government office to retrieve vital information. FSH aims to streamline these processes, making them more efficient, transparent, and accessible.

While FSH Technologies leverages advanced technologies, Chen emphasizes that AI is treated as a powerful tool within its comprehensive software solutions, rather than a panacea. The company uses AI for specific tasks such as optical character recognition (digitizing physical documents), translation services, and natural-language search capabilities, which allow users to query complex databases more intuitively. However, Chen firmly believes in integrating these tools into a broader, thoughtfully designed system, rather than relying on a standalone chatbot or an autonomous AI agent to handle an entire, complex government process without addressing the underlying systemic issues.

The journey into government sales has required immense patience and strategic foresight. Chen candidly admits that the company generated less than $100,000 in revenue in its first year, a reflection of the notoriously long sales cycles and bureaucratic hurdles inherent in securing government contracts. Despite the initial slow burn, the company is steadily growing its team, with roughly eight or nine employees and additional offers outstanding at the time of the interview, signaling a clear upward trajectory.

Chen’s monastic experience continues to profoundly influence how she leads FSH Technologies and shapes its company culture. She expresses skepticism towards the prevalent startup culture that often glorifies working extreme hours or sleeping in the office as badges of honor. She views such behaviors as often performative and ultimately detrimental to long-term effectiveness, arguing that adequate rest is crucial for sustained productivity and creativity. Her preferred motto, shared with her team, is "Slow is smooth and smooth is fast." This philosophy underpins FSH’s operational cadence: "We think slowly about a lot of things, and then we do things quickly," she explains. This means investing ample time in understanding the intricate web of people, departments, and procedures behind a government service before rushing to implement technological solutions. This deliberate, holistic approach is a direct echo of the "fish or the pond" lesson, ensuring that solutions are not just superficial but deeply integrated and sustainable.

Looking back at her remarkable journey, Chen attributes much of her success to the individuals and institutions willing to believe in someone whose resume didn’t conform to typical expectations. This includes the college that admitted her without a high school diploma and the early investors who wrote a check based on her character and vision, even before her company had a fully fleshed-out idea. Her story is a powerful testament to the value of an unconventional path and the profound impact of staying true to oneself. "You definitely end up finding your own way if you just stick to being weird," she concludes, embodying the spirit of a founder who transformed a monk’s robes into a CEO’s vision, all while building essential software for the public good.