LeadInno Medtech Secures Over RMB 100 Million in Series A+ Financing to Advance Wireless Implantable Neuromodulation Platform

VCBeat learned第一时间 that Leadinno Medical Valley (hereinafter referred to as "Leadinno Medical") has recently completed an A+ round of financing exceeding RMB 100 million. This round of financing was led by Fortune Capital, with Wuxi Zhaozeli Feng following the investment, and Genesis Partners serving as the exclusive financial advisor. The funds raised will be used for the research and development, production of Spinal Cord Stimulation (SCS) and Peripheral Nerve Stimulation (PNS) products, as well as company operations.

Neuromodulation therapy technology is considered the future of chronic disease treatment.Thanks to its effective treatment of chronic pain, Parkinson's disease, dystonia, essential tremor, epilepsy, urinary incontinence, and other conditions, the global neuromodulation market has grown rapidly in recent years. According to Markets and Markets, the global neuromodulation market is expected to grow from $5.8 billion in 2020 to $8-10 billion by 2025. Spinal cord stimulation (SCS) accounts for over 50% of this market. As a representative treatment technology for chronic pain, SCS addresses the largest patient population suffering from chronic pain and occupies the largest market share among all neuromodulation technologies. In recent years, an increasing number of innovative R&D companies in Europe, the United States, and China have entered this field.

Leadinno Medical Valley is a leading innovator in wireless-powered neuromodulation medical devices in China, focusing on the research, development, and promotion of innovative technologies in the fields of neuromodulation and pain management. The company’s chief scientists are Academician Han Jisheng, a founding figure in China's neuromodulation field, and Professor Fan Bifa, an academic leader in China's pain science. Based on years of industry experience, Leadinno Medical Valley addresses clinical needs and the limitations of traditional active (IPG) products by proposing"Facilitated Surgery, Miniature Implants, Continuous Power Supply, Cost Reduction" Technological Innovation Directions, and chose to make a breakthrough with an innovative wireless-powered neuroelectrical stimulation technology platform. Starting with spinal cord neuroelectrical stimulation (SCS), the company independently developed InnoPulse-SCS, China's first wireless-powered implantable neuroelectrical stimulation product.

Leadinno Medical Valley's Wireless Power-Carrying Implantable Neurostimulation ProductsSolved the complex problem of surgical procedures(The patient only needs to undergo one surgery),Overcoming the clinical application limitations of traditional active implantable neuroelectric stimulation products, breaking free from the constraints of traditional implantable pulse generators and battery efficiency limitations, and reducing electrode displacement.And other issues. It is reported that the wireless-powered SCS product is about to enter the clinical trial stage. Meanwhile, the company is rapidly expanding its product pipeline, with the peripheral nerve stimulation (PNS) product also entering the research and development stage. Similar to the SCS product, the PNS product also utilizes wireless-powered technology for electrical stimulation therapy of peripheral nerves.

In sync with the neuromodulation product line, Leadinno Medical Valley has developed the SpineInno minimally invasive spinal product line, represented by spinal endoscopic technology. Among these, the SpineInno-TOP foraminoscope system and the SpineInno-UBE dual-channel endoscope system have already been certified and entered the Chinese market. It is expected that by Q1 2024, the SpineInno-SIP interspinous endoscope surgical system and the SpineInno-DLA large-channel surgical system will also be certified and enter the Chinese market.

Mr. Tianrui Xu, Founder and CEO of Leadinno Medical ValleySaid: "A huge patient base will create an unparalleled market space for neuromodulation technology. However, the need for long-term implantation in such products has raised more urgent demands in terms of surgical convenience and long-term implant comfort. Through years of continuous exploration in RF power transmission technology and in-body implantable chip technology, the Leadinno Medical Valley team has empowered the InnoPulse wireless-powered product with a technological edge in this field. We look forward to providing clinicians and patients in this field with more advanced product options. The road to medical technology innovation is long and arduous, but Leadinno Medical Valley is fortunate to have an excellent team of like-minded investors who share our vision, offering tremendous support for corporate innovation. Especially during the capital winter of 2022-2023, Leadinno Medical Valley completed an over 100-million-yuan A+ round of financing within less than a year after its over 100-million-yuan Series A round in 2022, fully demonstrating the capital market's confidence in the Leadinno Medical Valley team and the innovative application of wireless-powered technology."

Fortune CapitalStated: "The treatment of chronic pain has an extremely high market ceiling. Currently, the global prevalence of chronic pain exceeds 20%, with over 300 million chronic pain patients in China, increasing rapidly by 10 to 20 million each year. Pain has become the third major health issue after cardiovascular diseases and tumors. In terms of treatment methods, although spinal cord stimulation (SCS), as a 'green therapy' for moderate to severe chronic pain, has been widely proven for its long-term efficacy and safety, traditional SCS therapy faces numerous issues such as high treatment costs, surgical difficulty, poor patient compliance, and more. These challenges have led to its limited application in the treatment of most chronic pain patients, with penetration rates in China still at a very low level, suppressing a large amount of unmet patient needs. Leadinno Medical Valley has independently developed the first wireless SCS in China, which is also currently the only wireless SCS available. Through wireless energy transmission technology, the battery and pulse generator are placed outside the body, with only the stimulating electrode implanted inside the body. Compared to traditional active implantable products, this offers significant advantages such as minimally invasive safety, high patient compliance, a low learning curve for doctors, good treatment outcomes, and lower costs. Once the product is launched, it will break the limitations of traditional product applications and quickly increase the penetration rate of chronic pain treatment. Additionally, the company's wireless energy transmission technology is a platform-based technology that can also be applied to products like deep brain stimulation (DBS), vagus nerve stimulation (VNS), sacral nerve stimulation (SNS), and peripheral nerve stimulation (PNS), thereby expanding into multiple fields such as Parkinson’s disease, epilepsy, stroke rehabilitation, and urinary/faecal incontinence. The market prospects are broad. We look forward to the company's products being launched soon to benefit a wide range of patient populations."

Geng Danting, Partner of Wuxi Zhaoyu Lifu"Pain management is an important application direction of neuromodulation technology. Globally, more than 1.5 billion people suffer from various types of chronic pain, of which over a quarter are intractable neuropathic pain. Internationally, implantable neurostimulators have become a key treatment for refractory pain. However, due to factors such as the high cost of existing SCS products and the complexity of surgery, neuromodulation technology has not been widely promoted in the field of pain management. Leadinno Medical Valley's self-developed wireless neurostimulation product—the first of its kind in China—achieves miniaturization and compactness of neurostimulator devices through technological innovation. By utilizing wireless energy transfer technology to externalize the battery, it reduces surgical difficulty, minimizes harm to patients' bodies during implantation, and alleviates their financial burden, truly achieving a balance between economic and social benefits. We believe that Leadinno Medical Valley’s products will further stimulate latent demand in the neuromodulation market in the future. Building on this foundation, they will create a richer and more comprehensive product portfolio to benefit even more patients."

Origin CapitalStated: "Neuromodulation technology has become an academic and research hotspot in today's medical field, with implantable neuroelectric stimulation becoming one of the most important treatment methods in multiple disease areas such as pain. VCBeat has been paying attention to innovative clinical applications in the neuromodulation field. Leadinno Medical Valley, starting from the underlying technology, has innovatively applied wireless power transmission technology to the neuromodulation field. The company’s self-developed first Chinese-made passive SCS product will break through the clinical application limitations of traditional solutions in terms of cost, surgical difficulty, and patient experience, which is expected to 'disrupt' the existing market. The VCBeat team is honored to continuously assist the company in completing multiple rounds of financing, and we look forward to Leadinno Medical Valley continuing to lead the development of China's neuromodulation industry."

Fortune Capital was established on April 19, 2000, with its headquarters in Shenzhen. It is one of the first local venture capital institutions in China to operate under market-oriented principles. Since its establishment, Fortune Capital has grown alongside China's rapid economic expansion and the continuous improvement of its multi-tiered capital markets. With support and care from all sectors of society, it has focused on areas such as intelligent manufacturing, information technology, healthcare, and the military industry, developing into one of the most influential venture capital institutions in China. Due to its excellent performance, Fortune Capital has consistently ranked among the top in authoritative evaluations by organizations such as the China Venture Capital Association, Zero2IPO Group, ChinaVenture, and China Finance. It has been listed among the "Top 50 Best Venture Capital Institutions in China" by Zero2IPO for 21 consecutive years, ranking first in 2012 and 2015, and has remained in the top three of local venture capital firms for nearly a decade.

The company currently manages a total fund size of nearly 50 billion yuan, has invested in more than 730 enterprises, successfully exited 278 companies, of which 142 have gone public, and 103 companies have been listed on the NEEQ. Investment cases include numerous well-known listed companies such as Aier Eye Hospital, CanSino, Capricorn Pharma, Hotgen Biotech, Lanwei Medical, Sinobioway Biomedicine, EVE Energy, Mingyuan Cloud, Huayou Cobalt, Hezhitai, G-bits, BlueFocus, Sunner Development, Tianwei Food, and Dingdong Maicai.

Wuxi Zhaoyue Lifeng was established in 2017 and registered with the Asset Management Association of China as a private equity and venture capital fund manager in 2018. The company's business currently covers multiple provinces, including Beijing, Shenzhen, and Zhejiang, forming a pattern focused on financial investment while emphasizing asset management and capital operations, with complementary advantages and steady corporate growth. Since its establishment, the company has participated in the investment of more than ten enterprises, primarily in industries such as intelligent manufacturing, energy conservation, environmental protection, and healthcare. Several invested companies have successfully gone public and completed exits. Qifeng Venture Capital, under Wuxi Zhaoyue Lifeng, is committed to investing in innovative medical devices, medical services, and technology sectors, supporting the growth of innovative healthcare companies.

SourceOne Capital, established in June 2021, focuses on providing comprehensive capital market solutions for companies in the healthcare sector. With an international perspective, it possesses abundant resources and insights rooted in the local market. The team has a diverse background, bringing together talents and expertise from investment banking, industry corporations, private equity investment, strategy, and management consulting, committing to delivering high-standard services and endorsements to enhance enterprises' capital market capabilities and efficiency. SourceOne Capital looks forward to growing together with its clients, invested companies, and industry partners, becoming the most trusted companion for all parties involved.