3N Technology Secures Tens of Millions in Pre-B Funding to Accelerate Development of the World’s First Active Contact Lens Care Platform

VCBeat learned recently,Suzhou 3n Biological Technology Co., Ltd.Suzhou 3n Biological Technology Co., Ltd. (Abbreviation: 3N Tech) announced the completion of a multi-million-yuan Pre-B round financing led by Shenzhen Capital Group with co-investment from WinX Capital, which also served as the exclusive financial advisor for this round.This round of financing will be used for continuous technological innovation, product clinical registration, and entering overseas markets.

3N Tech is located in the Biomedical Industry Park of Suzhou Industrial Park, focusing on the research, production, and sales of contact lens care solutions. The team has been deeply engaged in the ophthalmology field for many years, directly addressing the pain points of contact lens care. With disruptive innovative technology, they continuously enhance the wearing experience of hundreds of millions of contact lens users worldwide while minimizing the risk of complications such as corneal infections and dry eyes caused by improper contact lens care.Since its establishment, the company has achieved the top sales in its category on e-commerce platforms through online sales.

In terms of financing,3N3N Tech previously received financial and strategic investments from well-known institutions such as Panlin Capital and Hainan Jinming. This additional investment from Shenzhen Capital Group will undoubtedly help the company reach new heights in the ophthalmology field.

According to data from the National Health Commission, the overall myopia rate among children and adolescents in China was 53.6% in 2022, an increase from 52.7% in 2020. On April 7, 2023, the Ministry of Education issued the 2023 National Comprehensive Plan for the Prevention and Control of Myopia in Children and Adolescents, which explicitly states that myopia prevention and control efforts, overall myopia rates, and physical health status should be incorporated into government performance evaluations. As a result, contact lens products such as orthokeratology lenses, RGP (rigid gas permeable) lenses, and scleral lenses, which are effective means for myopia control, have quickly drawn the attention of parents of teenagers. According to estimates by the CICC Research Department, the number of orthokeratology lens users is expected to reach 3 million in 2023, with the penetration rate surpassing the 2% threshold.

On June 2, 2023, the Hebei Provincial Medical Drugs and Devices Centralized Procurement Center issued a notice to display the proposed winning results for 19 types of centralized procurement of medical consumables, including rigid gas-permeable contact lenses for orthokeratology, commonly known in the industry as OK lenses.The overall average price of OK mirror's intended selection is 3312 yuan/piece.Compared with the retail price of over ten thousand yuan per pair before the bulk purchase, the price has dropped significantly. The regionalized and foreseeable nationwide bulk procurement, along with the continuous influx of manufacturers into the market, means that the price of OK lenses will become even more affordable. As the gold standard for myopia prevention and control, the user base and penetration rate of OK lenses will further increase.

Besides OK lenses used by teenagers, the adult market for contact lenses and cosmetic lenses is also experiencing a boom against the backdrop of the contemporary "appearance economy" and "self-pleasure economy." It is estimated that by 2023, the number of wearers in China will exceed 80 million. In comparison, the number of contact lens wearers in the United States exceeds 40 million. The penetration of contact lenses and cosmetic lenses is expected to enter a phase of accelerated growth. Facing a market space worth hundreds of billions,The vast majority of manufacturers are committed to providing better contact lens products, but they often overlook the continuous iteration of lens care solutions behind them. However, 3N Tech is precisely a company like this.

Currently, the mainstream care method for contact lenses is the use of cleaning solutions. Compared to traditional soft contact lenses, the care for Ortho-K lenses (rigid lenses) is more complex. In addition to daily care solutions and hydrogen peroxide, strong protein removal solutions and other care products are required every 1-2 weeks to achieve deep protein removal. The main pain points in current use are:

● Time-consuming: Contact lenses usually need to be soaked in cleaning solution for several hours, and users have to spend a significant amount of time each day on lens care.

● Labor-intensive: Users need to clean the lenses twice a day, in the morning and evening, using care solution and manual rubbing to remove protein deposits.

● Costly: Generally speaking, due to the use of various care solutions, OK lens users need to bear an annual cost of 4,000 to 5,000 yuan for care solutions, while the terminal price of domestically produced OK lenses after centralized procurement is just over 3,000 yuan.

Besides the pain points in usage, according to an epidemiological survey, over 50% of contact lens wearers experience dry eye symptoms. The prevalence rate among wearers is 2.38 times higher than that of non-contact lens users, and the prevalence of severe dry eye increases by 3.61 times. Additionally, 2.4%-5% of contact lens wearers develop LSCD (Limbal Stem Cell Deficiency), with ocular inflammation being the most critical contributing factor. Therefore, due to various issues related to care, contact lens users often encounter numerous inconveniences that affect their overall user experience.

A simple calculation can be made: if China achieves 3 million users of OK lenses in 2023, with an annual care cost of 4,000 yuan per person, the market for OK lens care in China would reach 12 billion yuan. Additionally, including...The base of 80 million users of soft contact lenses (the annual care cost for soft lenses is about 1,000 yuan), as well as the users of scleral lenses and RGP, thenThe market for nursing products in China can exceed 20 billion.

The players in China's current lens care solution products are relatively concentrated.，The majority of the market share is still occupied by imported brands.The demand and space for domestically produced alternatives are enormous. According to the 2022 annual report of listed company Ocucon Science: In the previous fiscal year, sales of care products reached 299 million yuan. All of this indicates that the contact lens care market is growing rapidly, with a promising future.

In response to the above pain points of contact lenses, 3N Tech is committed to making lens care simpler, safer, and more affordable.The company's unique patented technology - Electrophoresis Dissociation, is a key factor in helping to achieve effective care. It has the opportunity to bring care into the powered era, and powered care products can better enhance the user's interactive experience.

Since the care of contact lenses involves eye safety issues, 3N Tech has been committed to providing products with higher safety and effectiveness. The chairman of VC 2023, the vice chairman of the Ophthalmology Branch of the Chinese Medical Association, and the director of China Eye Valley...ChairmanQu JiaThe professor delivered a speech in person at the event,Emphasize that the top priority in myopia prevention and control is safety.We must avoid repeating the frequent safety issues of OK lenses, and call on everyone to effectively ensure the safety of wearing lenses.And expressed support and recognition for the technological innovation of 3N Tech.

Currently, the company's products have gained recognition from frontline clinical experts, who hope to use this disruptive technology to enhance the care experience for more contact lens users, thereby improving wearer safety.

Professor Lan Weizhong, Deputy Director of the Optometry Research Institute of Aier Eye Hospital Group, presented "A Real-World Study on the Sterilization, Disinfection, and Protein Removal Effects of 3N Rigid Lens Protein Remover" at the conference.This study collected clinical data on sterilization, disinfection, and protein removal from five hospitals to compare the cleaning effectiveness of the 3N Tech rigid lens protein remover with commonly used multi-purpose care solutions and AB solutions in the market. The results showed3N Tech's 3N hard lens deproteinization care device has better deproteinization and sterilization effects.

In the broader overseas markets, 3N Tech's products have also begun to be distributed and have received very positive feedback. The U.S. market has a large number of contact lens users who are better educated on care, with stronger purchasing power and more mature consumption habits.Their recognition is the greatest support for the company's globalization strategy.

In the long term, the company is committed to becoming a solver of complex eye problems. Therefore, in addition to ocular lens care devices, other ophthalmic treatment devices under the company are also expected to complete medical device registration soon, aiming to completely solve the problem of dry eye from the source.

Founder of 3N Tech, Sun Bixia"It is a great honor to be recognized by SDIC Capital and WinX Capital this time. In China, the shortage of optometry professionals has limited the growth of optical products, and patients lack sufficient resources for education on care awareness. However, given the national efforts and policies for myopia prevention and control, the popularization of contact lenses is inevitable. Therefore, 3N Tech is committed to protecting the eye health of contact lens users from the source, using powered devices to replace traditional manual methods and helping patients solve all problems caused by wearing lenses. With the support of capital this time, we hope to use our technological innovation and self-driven reform to create a new global 3N care system, helping contact lens users see the world more clearly."

Dr. Tian Li from Shenzhen Capital Group's Red Earth Healthcare FundBelieves: 3N Tech is an innovative ophthalmic medical device company focusing on eye care and treatment. The innovation level of its products is globally leading, and the care solutions it provides have helped a large number of contact lens users solve infections and dry eye problems caused by improper traditional care. For many years, the capital market has maintained a high level of attention to the ophthalmology industry. The ophthalmology industry has strong consumer attributes and a large C-end market scale. The pain points of ophthalmic care and consumer demands are both very clear, and the care niche market also occupies an important market share within the ophthalmology industry; it just hasn't attracted enough attention from capital in the past. 3N Tech possesses the most cutting-edge technical team, deeply cultivates the ophthalmology field, and uses the most advanced solutions to address clinical pain points in ophthalmology. Moreover, in the current environment where the medical industry cycle has arrived and uncertainties in enterprise development have increased, companies with a certain degree of self-sustaining ability and sufficient development potential will be more competitive in the market. We believe that subsequent product iterations and the launch of new products by 3N Tech will spark a new wave in the ophthalmology market.

Founder of VCBeat, Guowen ZouStatement: WinX Capital is highly optimistic about the development of the ophthalmology industry. In the past two years, we have assisted dozens of startups specializing in the ophthalmology field to successfully complete multiple rounds of financing. The optometry sector has always been the largest track in the ophthalmology industry, with a large number of contact lens wearers globally. The challenge of contact lens care has long troubled consumers, not only due to cumbersome care procedures but also high costs. 3N Tech is a global leader in contact lens care solutions. Its original electrophoresis dissociation technology has greatly simplified the existing care process, improved comfort for contact lens wearers, reduced complications related to contact lens use, and significantly lowered care costs for consumers. We believe that this capital boost, along with national policy trends, will benefit the company’s future growth, helping it reach new heights.

Shenzhen Capital Group Co., Ltd. ("SCGC") was established in 1999 by the Shenzhen Municipal Government with capital contributions and guidance from social capital. The company's mission is to discover and build great enterprises, focusing on being an explorer and nurturer of innovative value. SCGC has evolved into a comprehensive investment group centered around venture capital, with a current registered capital of 10 billion yuan and manages various funds totaling over 440 billion yuan. As of July 31, 2023, SCGC leads the industry in both the number of invested enterprises and the number of listed portfolio companies: it has invested in 1,711 venture projects (covering 1,420 enterprises) with a cumulative investment amount of approximately 97.7 billion yuan and has exited 531 invested enterprises (including IPOs). Among them, 257 invested enterprises are listed across 17 global capital markets (excluding the New Third Board). SCGC consistently ranks at the top in comprehensive rankings conducted by authoritative institutions such as the China Venture Capital Association, Zero2IPO Group, and ChinaVenture.

WinX Capital is a leading investment bank in China's healthcare sector, headquartered in Beijing and Shanghai, covering over 3,000 active investment institutions and industry groups. It has been awarded "Top 1 Financial Advisor in the Medical and Health Field in 2022" by First Xinsheng, "Top 2 Best Financial Advisor in the Medical and Health Field for 2021-2022" by Qimingpian & Xinsheng Chuangfu, "Top 5 Annual Healthcare Financial Advisor of the 2022-2023 Pengcheng Award" by VCBeat, among many other honors.