LeadMed Innovation Completes Over RMB 100 Million Series A Financing to Advance Wireless Neuromodulation Platform

Recently,Leadinno Medical Valley(Abbreviation"Leadinno Medical Valley") Announced CompletionOver 100 Million Yuan in Series A RoundFinancing. This round of financing was led byProxima Capital, Old ShareholdersMed-Fine Health FundLeadinno Medical ValleyTigerYeah Capital, Med-Fine CapitalFollow-on Investment, Existing ShareholderShenzhen CO-WIN Venture CAPITAL Investment LimitedContinue to increase investment,Origin CapitalServe as a financial advisor.

It is reported that this round of funding will mainly be used for the research and development and production of Spinal Cord Stimulation (SCS) and Peripheral Nerve Stimulation (PNS) products, the expansion of the R&D team, and company operations.

Leadinno Medical Valley, established in June 2016, is a leading domestic neuro-modulation medical device developer that focuses on innovative wireless implantable neural electrostimulation technology platforms. It specializes in the research, development, and promotion of innovative technologies in pain management and neuro-modulation. Leadinno Medical Valley was founded by a pioneer in China's neuro-modulation field.Academician Han Jishengand the Academic Leader of the Chinese Pain SocietyProfessor Fan BifaServing as the Chief Scientist.

With the acceleration of population aging, increased competition in life, environmental changes, and other factors, pain issues have become one of the chronic diseases that seriously affect human life and quality of life after cardiovascular and cerebrovascular diseases and cancer. Chronic pain not only brings problems such as limited physical function, anxiety, insomnia, and depression to individual patients but also imposes a huge medical burden on society.

According to the World Health Organization (WHO) and the 2019 Global Burden of Disease Study, chronic pain affects 30% of the global population. The "Blue Book on China's Pain Prevention and Control and Health Promotion Strategy: Report on the Development of China's Pain Medicine (2020)" points out that the number of chronic pain patients in China exceeds 300 million, and is rapidly increasing at a rate of 10 to 20 million per year, with a trend toward younger patient demographics.

The complexity of the causes and pathogenesis of chronic pain has led to unsatisfactory outcomes for many treatment methods. In recent years, spinal cord stimulation (SCS) in the field of neuromodulation, as a "green therapy" with high safety, has been receiving increasing clinical attention. By using interventional techniques to implant electrodes into the epidural space of the patient's vertebral canal, and then stimulating specific segments of the spinal cord nerves with pulsed current after confirming the position, SCS can effectively block and interfere with the transmission of pain signals, providing relief for various types of chronic refractory pain caused by different factors.

In 2018, the global production of neurostimulators was approximately 189,900 units, with sales reaching about USD 4 billion (equivalent to RMB 25.6 billion). However, China's production in the neurostimulator market accounted for only about 1.63% of the global share, indicating significant room for market development. According to relevant reports from Grand View Research, the compound annual growth rate (CAGR) of the global neurostimulator market has reached 10%, and it is projected to reach a scale of USD 8.8 billion by 2025. Among this,Spinal Cord Stimulation (SCS) Represents the Largest Market Segment in the Niche Field, accounting for approximately 55%, indicating broad market development potential.

Leadinno Medical Valley, established in 2016, has put forward four requirements based on years of industry experience, addressing clinical needs and the limitations of IPG-type products: "simplified surgery, miniature implants, sufficient energy, and low cost." It has chosen to make a breakthrough with innovative wireless-powered neural electrical stimulation technology.

Starting with SCS, Leadinno Medical Valley independently developed the first wireless-powered implantable neurostimulation product in China. This product can overcome the clinical application limitations of traditional active implantable neurostimulation products and is expected to bring more comfortable and effective treatment solutions to hundreds of millions of chronic pain patients worldwide.

In addition, the company is rapidly expanding its product line, and the PNS product has also entered the R&D stage. Similar to the SCS product, the PNS product also utilizes wireless power transfer technology for electrical stimulation therapy of peripheral nerves.

For this round of financing,Sun Xiaolu, Founding Partner of Proxima CapitalProxima Capital stated: "Pain management and neuromodulation have always been areas of focus for Proxima Capital. Despite the large population of pain patients, it has been difficult to promote on a large scale due to national conditions and other practical factors. Leadinno Medical Valley adopts wireless power-carrying technology, which can reduce the difficulty of doctors' surgeries, provide patients with a better user experience, and greatly reduce usage costs, demonstrating strong product competitiveness. At the same time, wireless power-carrying technology, as a platform technology, can be expanded into more fields, including PNS. We believe that under the promotion of the Leadinno Medical Valley team, better solutions can be provided to doctors and patients."”

Su Zhonghe, Managing Director of Med-Fine Health FundRepresentative stated: "Leadinno Medical Valley's R&D team started from the clinical needs and pain points of neuromodulation, independently developed everything from the underlying chip circuits to wireless-powered RF communication solutions, and formed comprehensive intellectual property coverage. Currently, the product’s realized functions and basic performance have reached a globally leading level. As the investor from the previous round, Med-Fine Capital continues to witness the company’s rapid progress. In this round, we will continue to increase our investment in the company, looking forward to the early market entry of globally leading neuromodulation products to benefit patients."”

Dr. Tianrong Ji, Founder of TigerYeah CapitalSaid: "More than 1.5 billion people worldwide suffer from various types of chronic pain, surpassing the total number of patients with cardiovascular diseases, diabetes, and cancer combined. Among them, over a quarter suffer from the most stubborn neuropathic pain, urgently requiring better treatment options. The unmet clinical needs have always been a key focus for TigerYeah Capital. Leadinno Medical Valley's self-developed first wireless neurostimulation product in China will bring broader application scenarios, better treatment outcomes, and more comfortable patient experiences. We believe in the efficient execution and market operation capabilities of the Leadinno Medical Valley team, which can transform decades of advanced technical expertise from pain experts into commercially viable, scalable products, benefiting more doctors and patients."”

Chen Yilong, General Manager of Meihong InvestmentStated: "Traditional implantable neuromodulation products still have many pain points in clinical applications, which limits the scale of application on the clinical demand side for neuromodulation. The brand-new wireless implantable neuroelectrical stimulation product independently developed by Leadinno Medical Valley not only surpasses traditional implantable neuromodulation products through technological innovation but also has more advantages over similar foreign products in terms of transmission efficiency, transmission stability, energy consumption, implant volume, and cost control. In the SCS field, which has the highest technical barriers, we are optimistic that Leadinno Medical Valley's products will further unlock the potential demand of China’s neuromodulation market and even possess certain competitiveness in the international market. We believe that the team will be able to create a richer and more diverse product line in the future, becoming a unicorn company in the field of wireless-powered neuromodulation."”

Song Yang, Deputy Investment Director of Shenzhen CO-WIN Venture CAPITAL Investment LimitedRepresentative stated: "Whether it is pain caused by neuropathological changes due to primary or secondary factors, or mixed pain represented by cancer pain, the patient base for these chronic pain conditions is extremely large, with a significant reduction in quality of life. Among them, nearly 10% of patients have severe and stubborn symptoms. Implantable neurostimulation therapy has become an important, and even preferred, treatment method for this type of pain. Compared with the main neurostimulation implant products currently on the market, Leadinno Medical Valley's product does not require the implantation of a battery or IPG in the body, thus greatly reducing the size of the implant, minimizing the sense of foreign objects, while still allowing such patients to undergo examinations like MRI scans. Deep original research technology, stable product performance, human-centered industrial design, and precise cost control will all become Leadinno’s ‘competitive moat.’"’We also believe that Leadinno Medical Valley's SCS product, as well as upcoming products like PNS in the pain management field, will truly benefit patients suffering from chronic pain in terms of technology, performance, and accessibility.”

SourceOne Capital"It has been stated: 'Neuromodulation technology has become an academic and research hotspot in today's medical field. Among it, implantable neuroelectric stimulation has already become one of the most important treatment methods in areas such as pain, Parkinson's disease, epilepsy, and neurological dysfunction. VCBeat has consistently focused on innovative clinical applications in the neuromodulation field. Leadinno Medical Valley, starting from foundational 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, with the potential to ‘disrupt’ the existing market.'"’The Yuanyi team is honored to assist the company in completing this round of financing. We look forward to Leadinno Medical Valley continuing to lead the development of China's neuromodulation industry.”

Proxima Capital manages both RMB funds and USD funds. We focus on serving outstanding medical technology innovation companies with tremendous growth potential, and currently, about two-thirds of our invested companies have globally pioneering products. We are continuously building a healthcare innovation and entrepreneurship ecosystem to make the entrepreneurial journey easier, faster, and more successful. We support visionary entrepreneurs who take a long-term perspective, focus on value creation, and work alongside us to develop their companies into great enterprises with strong competitiveness and sustained innovation capabilities, thereby creating significant clinical value for society over the long term.

Med-Fine Capital focuses on investments in the pharmaceuticals, healthcare, and life sciences sectors, with offices in Shanghai, Beijing, and Shenzhen. The management team boasts extensive international perspectives, profound industry backgrounds, abundant sector resources, and professional investment experience. The fund emphasizes "early value and track opportunity discovery," concentrating on investment opportunities in biopharmaceuticals, medical devices and diagnostics, digital health, and health technology. To date, it has completed investments in approximately sixty pharmaceutical enterprises, including Handuyi Medical, Tian Guangshi, Enotap, Zanrong Pharmaceuticals, Linkon Pharmaceuticals, Pengli Bio, XinCheng Medical, Libang Pharmaceuticals, Anru Bio, Heduo Bio, Saifu Pharmaceuticals, Ansong Technology, and WeRock Medicine. By combining "decentralized investment" with "systematic operations," Med-Fine Capital envisions "outlining the horizon of life sciences." Upholding the philosophy of "harnessing the power of capital and rewarding trust," Med-Fine aspires to become an open, platform-oriented, highly competitive, and widely respected professional investment institution.

TigerYeah Capital was founded in 2014 as an independent venture capital institution under Tigermed. TigerYeah Capital focuses on equity investments in early and growth-stage healthcare sectors. The management team has a deep industry background, extensive industry resources, and rich investment experience. To date, it has completed investments totaling 2 billion yuan across nearly a hundred projects, with a portfolio covering medical devices, biopharmaceuticals, CROs, and health foods. By empowering its invested companies, TigerYeah Capital creates value for the development of the healthcare industry in China and globally, contributing to public health.

Meihong Investment, founded by Chen Yilong and other former senior executives of Meinian Onehealth Healthcare (SZ: 002044), focuses on upstream, midstream, and downstream industries closely related to the healthcare industry, as well as growth-oriented non-listed companies' equity investments. It leverages deep resources in the medical service sector to empower its invested enterprises. Adhering to the philosophy of "Health means Future—grasping the definitive value within China's health investment trends," Meihong Investment is committed to becoming an incubation platform for innovative healthcare and industrial integration, laying out an innovative ecosystem chain for medical services.

Shenzhen CO-WIN Venture CAPITAL Investment Limited, established on June 26, 2000, is one of the first professional private equity investment companies in China. The company has over 20 years of investment management experience, managing more than 30 billion RMB, and has successively invested in over 500 enterprises, with nearly 100 going public. The core investment team is highly stable, emphasizing industry background and internal development, making it a leading local brand professional investment institution in China with long operating history and consistently excellent returns.

SourceOne Capital, established in June 2021, focuses on providing comprehensive capital market solutions for companies in the healthcare sector. It boasts an international perspective, along with abundant localized resources and insights. The team has a diverse background, gathering talents and expertise from investment banking, industrial enterprises, private equity investment, strategy, and management consulting, committed to delivering high-standard services and endorsements to enhance companies' 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.