Vistel Imaging Secures Over RMB 300 Million in Series C Funding, Signaling a Tipping Point for Domestic Substitution in High-End Ophthalmic Devices

VCBeat exclusively learned that Intalight has announced the completion of a C-round financing of over 300 million RMB. This round of financing was led byLed by Guoshou Equity and Qianhai Ark, with follow-up investments from CD Capital, Shenzhen Capital Group, CICC HuiRong, Huachuang Yida, Lingang Blue Bay, and Xiaoming Investment., original institutional shareholders continue to invest,Well-known FA institution in the hard technology field, VCBeat, served as the exclusive financial advisor.

As a high-end ophthalmic device platform company, Intalight was founded in 2014 by two American-educated Ph.D.s, Xianzhao Peng and Bing Li, in Silicon Valley. Over the past eight years, the company has experienced rapid growth. To date, Intalight operates three major R&D and operational centers in Silicon Valley, Shanghai, and Luoyang.In 2022, Intalight's sales performance grew more than threefold, with annual sales exceeding 100 units and terminal sales reaching nearly 200 million yuan.Intalight's product advantages are evident, with the average OCT winning bid price (publicly listed winning bid prices in public hospitals) surpassing those of high-end imported brands and other domestically produced products.。Intalight OCTs Are Being Installed in Top-Tier Hospitals and Eye Specialty Hospitals Across China, as shown in the figure below for representative hospitals.

At the venture capital and clinical ends, Intalight has also attracted significant attention. On one hand, it has garnered support from numerous star institutions; on the other hand, Intalight has received acclaim from many top clinical experts. This sufficiently demonstrates that Intalight's products have successfully navigated the most critical phase of commercialization, and subsequent development is expected to accelerate even further.

What is the logic behind Intalight's rapid growth and the reason for its continued favor with investors? Regarding this question,VCBeat, through an exclusive interview with Intalight and industry analysis, will provide a comprehensive interpretation from three dimensions: the macro trend of the ophthalmic device track, the development of enterprises at the meso level, and the micro perspective of investor outlook.

Ophthalmic devices made in China are welcoming an important historical opportunity.

On the one hand, the demand for ophthalmic medical services continues to grow. According to data from the WHO's "World Report on Vision," China currently has 400 million patients suffering from various eye diseases, with nearly 300 million being nearsighted. As China's aging population increases and modern lifestyles change, the incidence of eye diseases will continue to rise significantly, along with a notable increase in treatment needs. Additionally, the market for refractive and optometric services aimed at improving visual quality will continue to upgrade. Therefore, with the growing demand on the clinical side, the demand for ophthalmic equipment is showing a high acceleration growth trend.

On the other hand, national policies are boosting the development of the ophthalmology industry. In 2022, the National Health Commission issued the "14th Five-Year Plan for National Eye Health in China (2021-2025)," which emphasized strengthening the establishment and construction of ophthalmology departments in secondary-level and above general hospitals, addressing the shortcomings in ophthalmology and its supporting disciplines. In response to the high prevalence of myopia among Chinese primary and secondary school students, the country has even elevated myopia prevention and control to a national strategy, gradually establishing systems for myopia screening, prevention, and treatment. The direct impact of these measures is that medical institutions at all levels have placed the development of ophthalmology departments in an important position, and the innovative development of ophthalmic-related equipment and drugs has received significant attention from all sectors of society.

This is followed by a relatively rapid growth in the performance of ophthalmic devices, especially domestically produced ophthalmic devices, indicating that the substitution of Chinese-produced ophthalmic devices has reached a turning point. The火热 (intense activity) on the venture capital investment side also offers a glimpse into the situation.According to data from the VCBeat database, since 2021, there have been over 22 financing events in China's ophthalmic device sector, with a total financing amount reaching more than 2.8 billion yuan, surpassing the sum of the previous five years from 2016 to 2021.

It must be understood that China's ophthalmic medical device industry has long faced an extremely high monopoly rate, especially in the field of high-end ophthalmic instruments. The market has been dominated by foreign manufacturers such as Zeiss, Johnson & Johnson, Alcon, Bausch + Lomb, and Heidelberg Engineering. Both doctors and patients are familiar with foreign brands but know very little about domestic ones. Why? The reason lies in the exceptionally high technical barriers in ophthalmic devices. As precision optical instruments, high-end ophthalmic devices require advanced optical design and systems engineering capabilities. For imaging equipment, exceptional algorithmic expertise is also necessary. Traditional Chinese ophthalmic device manufacturers lag far behind foreign brands due to a significant technological gap. Without sufficient talent reserves and long-term R&D investment, traditional Chinese ophthalmic device manufacturers have struggled to make progress in this field.

And with the rise of innovative companies like Intalight, the situation is gradually opening up.

Specifically,Intalight has gathered a world-class R&D team led by Dr. Peng Xianzhao, an optical systems expert, and Dr. Li Bing, a medical imaging algorithms expert. The team possesses over 20 years of Silicon Valley engineering experience, along with expertise in semiconductor optics and the development of high-end medical devices., dedicated to providing advanced ophthalmic diagnostic and treatment products to global users by integrating cutting-edge technologies such as optical design, imaging algorithms, artificial intelligence, and cloud platforms.

In the field of innovative R&D, talent is a crucial link. Intalight has been characterized by this since its inception."The Gene of Silicon Valley" and "Global Vision"The team. In terms of talent recruitment, it has been continuously searching for the talents needed to be introduced to the company on a global scale. With the support of excellent talents, Intalight's technology and products have achieved breakthrough progress. Taking Intalight's first self-developed OCT product as an example, it surpasses imported high-end products in imaging quality, breadth, depth, speed, blood flow algorithm, etc., setting a precedent for domestically produced high-end ophthalmic equipment to surpass imports and lead the world.        

Intalight OCT Becomes a Powerful Academic Tool for Experts in China

Of course,In addition to leading technology, the clinical effectiveness of the product is also extremely important, which is the key to whether domestic substitution can truly be implemented.

In this aspect, Intalight has received praise from many top clinical experts, such asProfessor Zhang Xiaofang, founder of the Ophthalmology Department at the First Affiliated Hospital of Zhengzhou University and a leading figure in Chinese ophthalmology; Professor Li Xiaoxin, General Director of Xiamen Eye Center; Professor Wei Wenbin from Beijing Tongren Hospital affiliated with Capital Medical University; Professor Chen Youxin from Peking Union Medical College Hospital; Professor Zhang Xiulan from Zhongshan Ophthalmic Center, Sun Yat-sen University; Professor Zhang Ming from West China Hospital, Sichuan University; Professor Lei Bo, Deputy Director of Henan Provincial People's Hospital/Henan Provincial Eye Hospital/Henan Provincial Eye Research Institute, etc.In addition, Intalight OCT has assisted experts in China to publish68 ArticlesInternational journal SCI paper, which indicates that Intalight's products have gained widespread recognition for their clinical research and application value.

Chinese Experts Praise Intalight Swept-Source OCT                              

With its excellent product strength and clinical recognition, Intalight has achieved rapid commercial breakthroughs and demonstrated high growth potential.In 2022, Intalight achieved more than three times sales growth, with over 100 units sold throughout the year and terminal sales reaching nearly 200 million yuan. Meanwhile, Intalight's OCT devices have now sold more than 150 units across China, with over 60 units installed in leading domestic ophthalmic centers and benchmark hospitals in various provinces. In over 80% of the TOP 30 ophthalmic centers in China, they have become the main equipment for clinical and research purposes, and trial units have reached hundreds across the country.

Intalight Swept-Source OCT Installed in Some Leading Hospitals or Eye Centers

It is not difficult to find that,In terms of policy support, capital investment, clinical recognition, and corporate growth, it can be seen that the process of domestic substitution in China's ophthalmic equipment industry is accelerating significantly, and a turning point is approaching.

And in this huge opportunity period, how should China's innovative enterprises take advantage of the situation to soar?

As a representative enterprise of domestic substitution in ophthalmic devices, Intalight has always been innovation-driven and seeks greater breakthroughs.

For example, inTechnological InnovationIn 2019, Intalight launched the first swept-source OCT in China to receive NMPA certification, breaking the long-standing monopoly of imported devices and resolving various technical challenges that had been "stifling" the industry. However, Intalight did not stop there, but continued to deepen its efforts and iterate.

In 2022, Intalight launched the Ruyi Full-Eye OCT technology for the first time. This is the world's first integration of five cutting-edge clinical functions: full-eye axial visualization biometry, anterior segment OCT, posterior segment OCT, anterior segment OCTA, and posterior segment OCTA. It provides a one-stop examination solution for diseases such as retinal disorders, cataracts, refractive errors, and glaucoma.Particularly noteworthy is that the Intalight Full-Eye OCT not only provides imaging information highly consistent with traditional angiography results, but also exhibits higher resolution and contrast for lesions such as neovascularization in the macular region and non-perfused areas of the retina. This undoubtedly marks the beginning of OCTA replacing traditional angiography, ushering in a new era of non-invasive fundus imaging diagnostics.

Intalight Full-Eye OCT Imaging

Based on the above innovative advantages, Intalight's products have frequently received honors, including an evaluation from the Ministry of Science and Technology of China: fully reaching international advanced levels, as well as being recognized in the 2021 "Top Ten Advances in Chinese Ophthalmology," and being selected for the 2022 Eighth List of Excellent Medical Devices Produced in China.

In addition, based on the advanced AI algorithm of Intalight's OCT product,"Intalight's AI-Assisted Peripheral Defocus Myopia Treatment Solution Based on Micron-Level 3D OCT Data of the Eye" was shortlisted for the Innovative Task of Artificial Intelligence Medical Devices organized by the Ministry of Industry and Information Technology and the National Medical Products Administration in 2022., which represents its significant achievement in industry innovation. The demand for ophthalmic diagnosis and treatment in China is far from being met, with the core limiting factor being the shortage of medical and doctor resources—training ophthalmologists requires a long cycle. In the future, Intalight will launch OCT products equipped with its self-developed advanced AI-assisted diagnostic technology to support the training of ophthalmologists, empower grassroots hospitals, accelerate the popularization of third-generation ophthalmic swept-source OCT, and lead ophthalmic diagnosis into a more efficient and precise intelligent era.

Intalight's Advanced AI Technology Gains Industry Recognition

Building on the existing experience in the productization and mass production of swept-source OCT, Intalight is currentlyFrom ophthalmic diagnostics to the treatment field, becoming a global high-end ophthalmic platform enterprise to achieve a comprehensive layout of "high-end diagnostics + treatment equipment.", continuously improving the product portfolio. Relying on its world-class optical design, systems engineering, and algorithm development teams, Intalight is rapidly addressing the challenges of new product development while increasingly integrating the needs of the Chinese market into its products.

In the field of ophthalmic diagnosis, Intalight's full-eye OCT platform continues to expand in technology and application, from the fundus to refraction., and will have significant breakthroughs in the field of optometry.; Intalight's next-generation swept-source biometer can increase the cataract detection rate to over 99%, thereby addressing the issue of insufficient transmission and detection rates for cataracts in Asians with current market products, pushing biometric measurement functionality to new heights; Intalight is about to launch China’s first ultra-widefield true color fundus camera, which will surpass existing foreign brand products in both "ultra-widefield" and "true color" dimensions, meeting the significant potential demand for upgrading and replacing fundus camera equipment in ophthalmic medical institutions in China.

In the field of ophthalmic treatment, Intalight is fully committed to building a globally leading all-femtosecond refractive surgery system and has currently completed the optical system design of the all-femtosecond refractive surgery system.Intalight adopts a technical route featuring large numerical aperture optical design, high pulse frequency, and personalized all-femtosecond surgery design, truly achieving the accumulation of key core technologies in the all-femtosecond field and breaking foreign monopolies. Combined with significant technological advantages accumulated in the OCT field, Intalight's all-femtosecond refractive surgery system will innovate system control methods and surgical plans, focusing on solving the problem of existing all-femtosecond surgeries being unable to address astigmatism. This pushes the safety, convenience, and scope of application of all-femtosecond surgeries to new heights, bringing patients an excellent postoperative visual experience.

With a global perspective, Intalight is also continuously making efforts, and currentlyActively expand the international market and simultaneously promote product registration in the United States and Europe. In November 2022, Joseph Garibaldi, former Global Commercial Vice President of Optovue, officially joined Intalight., appointed as the Chief Commercial Officer (CCO) of the United StatesUnder his leadership, Intalight is actively promoting academic exchanges and research cooperation with overseas experts. At the 2022 Rome International OCT Conference, Intalight's debut overseas earned praise from numerous international experts.

Left image: Joseph (left), Intalight's CCO in the U.S., and Dr. Peng Xianzhao, founder and chairman of Intalight

Right: Dr. Peng Xianzhao Shares Intalight Full-Eye OCT New Technology with the World at the 2022 Rome International OCT Conference

In summary, it is precisely by taking innovation as the core and continuously infusing new technologies and clinical functions into ophthalmic devices that Intalight has been able to constantly achieve breakthroughs and growth while building high-end ophthalmic instruments with globally leading technology.

Before this round of financing, Intalight had already received backing from numerous well-known investment institutions, which greatly benefited its research and development progress and business expansion. This new wave of capital favor will continue to drive Intalight to broaden its growth boundaries.

For instance, in this round of financing, apart from the funding scale exceeding 300 million yuan, the support from investors across more fields and different dimensions is noteworthy:Among the investors are GD Life, a top-tier fund specializing in healthcare; well-known comprehensive industry funds such as Qianhai Ark and Shenzhen Capital Group; prominent institutions focusing on the medical device sector like CD Capital; as well as funds representing government support from Henan and Shanghai, including CICC Huirong and Lingang Blue Bay.The ability to attract institutions from various fields and dimensions to participate in this round of investment indicates that the company's development has been highly recognized by all sectors of society.

China Life Equity CompanyThe localization of high-end ophthalmic devices is of great significance for reducing the cost of ophthalmic disease treatment and improving the treatment rate of ophthalmic diseases in China.Intalight's founding team has a strong background in semiconductor and precision optics technology. They were the first to launch a domestically produced swept-source OCT product and achieve commercialization. Their product surpasses imported high-end competitors in multiple core parameter performances, achieving a high level of import substitution.China Life Equity Company hopes to join hands with Intalight, leveraging its hardware advantages, to continuously extend from diagnostics to treatment and consumer health fields, expand business boundaries, and benefit patients worldwide.

Kong Xiang, Executive Partner of Qianhai ArkIntalight is a successful example of overseas returnees starting businesses in China with strong support from local government policies, and it also aligns well with Qianhai Ark's investment style, which focuses on hard technology tracks. Ophthalmic OCT is a fundamental and platform-level high-end device in the ophthalmology field.Based on the third-generation swept-source technology, the Intalight team has achieved a leapfrog advancement of domestically produced equipment over imported equipment through outstanding engineering capabilities and excellent algorithm accumulation.In the future, the company will achieve rapid growth through product diversification and globalization strategies. We are confident in Intalight's growth into a "global leader in high-end ophthalmic medical devices" and look forward to the company’s products benefiting more patients with eye diseases. The Qianhai Ark Fund Cluster will continue to actively empower the enterprise and support its expansion and success.

ChenDe CapitalIntalight has a very rare R&D team, gathering top talents in high-end optical design, AI algorithms, and system engineering, and possesses the ability to continuously attract high-level talent. We admire the founding team's vision and perseverance.Also appreciated is the company's earnest practice of the values of "efficiency, pragmatism, collaboration, and progress," achieving a level of domestic substitution that surpasses imported top-tier brands, and establishing a strong reputation in the Chinese market.We highly anticipate more breakthroughs from Intalight in the therapeutic pipeline and optometry fields, and its rapid expansion into the global market.

SDVCOphthalmology is one of the golden tracks in the medical device industry.Intalight's technology platform covers multiple product lines, and its product performance has reached a globally leading level.We have high expectations for Intalight's future development.

Zhao Zhanxiang, Partner of Yunxiu CapitalRepresentatives: The founding team members of Intalight come from KLA, a leader in semiconductor inspection equipment. When we saw several PhDs who had previously worked on large-scale equipment with nanoscale detection precision and values exceeding tens of millions of US dollars tackling high-end medical devices, we chose to cooperate without hesitation. The demand for domestic substitution of semiconductor equipment and high-end ophthalmic instruments is strong, and the underlying technologies involved—such as optical design, electronic engineering, precision machinery, and algorithms—all possess extremely high barriers.Intalight's products not only achieve China-produced alternatives but have also reached a globally leading level, even defining product standards, making it a rare outstanding enterprise with the strength to move from local to global.China is paying more attention to technology and innovation now than ever before, and there are high expectations for Intalight to launch more high-end ophthalmic devices with strong technical barriers and innovation, becoming a world-leading high-end ophthalmology platform enterprise.

It is worth mentioning that the original institutional shareholders of this round of financing continued to increase their investment, indicating the firm confidence of the institutions in Intalight's long-term growth.

On the other hand, from the perspective of future business development,These diversified shareholder structures will bring more possibilities and opportunities to Intalight.China currently has more than 3,000 tertiary hospitals, over 6,000 secondary hospitals, and more than 20,000 ophthalmic clinics and optometry centers, with enormous market growth potential and vast overseas market prospects.Intalight, based on its sufficiently hardcore, sufficiently advanced, and clinically suitable products, coupled with strong support from the capital side, will continuously expand its market presence, enrich its product pipeline, and attract top global technical and marketing talent. The future development of Intalight holds tremendous potential for imagination.

Intalight's Global Layout

Though the road is long, it will be reached if we walk; though the task is difficult, it will be accomplished if we do. What supports a company's long-term development are its core values and pragmatic, efficient execution. The two founders of Intalight, facing the future with ambition, remain true to their original aspirations.

Dr. Peng Xianzhao, Founder and Chairman of IntalightRepresentation: "Gaze at the stars, feet firmly on the ground." Intalight's values are to persist in doing what is difficult yet right, challenging yet highly valuable, with full dedication, perseverance, continuous self-breakthrough, and pursuit of excellence. As an ophthalmic medical device manufacturer, we proceed with utmost care, as if walking on thin ice, with meticulous attention to detail.We hope to provide the highest quality and most trustworthy products for medical institutions, doctors, and patients.

Co-founder and CEO, Dr. Bing LiIntalight: Comprehensive Layout Includes Ophthalmic Equipment Products Such as OCT, Ultra-Widefield Fundus Cameras, and Full-Fly Refractive Surgery Systems. In the Future, We Will Focus on Three Key Tasks. The First is High-Quality Industrialization—Scaling from 1 Unit to 100 Units, and Eventually to Thousands or Even Tens of Thousands. Our Production Platform Must Improve to Build a World-Class Lighthouse Factory, Ensuring That Our Products Earn the Trust of Medical Institutions, Doctors, and Patients. The Second is Globalization of Markets and Talent.Intalight not only aims to lead the domestic substitution of high-end ophthalmic devices in China, but also to go global, benchmarking against the world’s leading ophthalmic device brands, and become "China's representative team for global high-end ophthalmic devices."At the same time, we need to attract talents from all over the world and various fields to join the Intalight team, to jointly create and promote great products. The third task is to enhance the dimension of innovation, from technological innovation, product innovation to application innovation. Our talent team needs further improvement, R&D should be more forward-looking, and the product application team should expand. We must focus on researching and solving the core needs of the market, address the pain points and difficulties of China's ophthalmology needs, and become the trailblazer in the clinical application innovation of ophthalmic equipment in China.

What exciting innovation stories will China's ophthalmology field tell next? Let's wait and see.