ZS Health Secures Tens of Millions in Pre-A Funding to Accelerate Regulatory Submissions for Multiple Orthopedic Devices

VCBeat (WeChat ID: vcbeat) recently learned that a 3D-printed orthopedic device company`ZSFab`announced the completion of a Pre-A funding round worth tens of millions of RMB,Led by Yuandu Capital, Yuanwang Capitaland existing investor Qingyuan Venture Capital jointly co-invested to completeCheng. The proceeds from this round of financing will be allocated to scaling up R&D, expanding the product portfolio, accelerating market expansion, and team building. The company expects to complete the registration and certification for two to three 3D-printed orthopedic devices next year.

Previously, ZSFab completed its angel round of financing in 2019. Regarding the completion of this funding round,Dr. Jing Zhang, Founder of ZSFabResponded: “First and foremost, we extend our sincere gratitude to our partners who have journeyed and fought alongside us every step of the way. From the industry's nascent stages to its growing prominence, it is everyone's unwavering perseverance that has allowed us to witness the recognition of our vision to reconstruct foundational value. Secondly, we thank the hospitals and clinicians who have supported us in the clinical field, enabling us to clearly see physicians' expectations for premium medical products and the profound, unmet needs of patients. Finally, we are deeply grateful to the investors who have provided financial backing and to our industry peers who have offered their assistance. Your continuous support has empowered ZSFab to steadily advance forward.”

ZSFab is the first company in China to secure U.S. FDA device registration clearance for 3D-printed orthopedic devices. Its ZSFab cervical interbody fusion cage obtained U.S. FDA medical device approval in early 2021. Capital investment in ZSFab also reflects strong market confidence in the 3D-printed orthopedic device sector. Driven by the global trend of population aging, sports- and health-related musculoskeletal disorders will become increasingly prominent. Consequently, the future market demand for personalized orthopedic devices will only continue to grow.

From a technical perspective, the manufacturing processes for traditional orthopedic devices have reached a bottleneck, making it extremely difficult to further enhance product performance. Only by fundamentally restructuring and upgrading the underlying technologies across the entire industry can we usher in a new generation of high-performance orthopedic devices. This is precisely the opportunity identified by ZSFab, alongside the vast market potential it faces.

“To be honest, what we at ZSFab aim to develop are orthopedic products that achieve functionality identical to that of natural human bone, and we are now steadily approaching this goal,” Zhang Jing said in an interview.

The development of orthopedic devices that achieve efficacy identical to natural bone is not a mere fantasy, but a practical path steadily pursued by ZSFab. The company utilizes titanium alloys with excellent biocompatibility for bone implants. To address critical pain points of traditional implants, such as significant postoperative mechanical mismatch and the inability to facilitate rapid and deep bone ingrowth, ZSFab innovates the material architecture by precisely controlling its microporous structure. This ensures the implant's mechanical properties are highly compatible with natural bone. Furthermore, through the optimization of pore size and porosity, bone cells can rapidly grow into the implant's interior, achieving seamless integration between the device and the bone, and ultimately realizing a bioactive implant-bone composite.

When designing orthopedic implants, ZSFab conducts in-depth research into the structural, morphological, and dimensional parameters of human bone, enabling faster and deeper bone ingrowth into the implant's internal architecture under near-realistic simulated conditions. Furthermore, through precise customized design of material structures, coupled with advanced manufacturing and post-processing techniques, the company effectively prevents metal particle residue during clinical application. This technology has been validated on the FDA-approved ZSFab cervical fusion cage, with its particulate shedding safety performance far exceeding FDA standard requirements.

In addition to the ZSFab cervical fusion cage, ZSFab will successively launch several orthopedic medical devices following the acceleration of this funding round. Its product portfolio is also strategically expanding from the spinal field to orthopedic joints and sports medicine. Developing orthopedic devices that closely align with clinical needs represents a highly robust application scenario for 3D printing technology both currently and in the future.

Regarding the investment in ZSFab, the lead investorHuang Shu of Yuandu Venture Capitalstated: “As major economies such as China and the United States rapidly transition into aging societies, coupled with a growing number of individuals engaging in physical exercise, the demand for orthopedic implants and sports medicine continues to rise. The ZSFab team emerges as a cross-disciplinary innovator, deeply integrated with the medical community. Their proprietary high-tech solutions, featuring morphological matching, biomechanical adaptation, and deep bone ingrowth, hold significant value in safeguarding sports health and treating skeletal disorders. We also welcome their efforts to restructure the orthopedic implant and sports medicine industries by launching premium products. The team’s profound understanding of clinical needs, rigorous exploration of underlying scientific principles, and efficient technical execution clearly demonstrate their strong capabilities.”

Yuanwang Capital'sTian Hongfeialso acknowledged: "3D bone printing integrates today's most advanced materials science, 3D printing technology, personalized medicine, and biotechnology. As a leading enterprise in this sector, ZSFab was the first to obtain U.S. FDA product certification. Zhang Jing, a thought leader in the 3D printing industry, has remained true to his original mission from Tsinghua University to the University of Southern California, consistently dedicating himself to the research and development of 3D bone printing. Yuanwang firmly believes that ZSFab will undoubtedly become a leader in this industry."

Existing ShareholdersWang Jinlin of Qingyuan Venture Capitalsaid: "ZSFab embodies all the qualities that Qingyuan Capital, as an investment fund, seeks in its ideal portfolio company: an outstanding interdisciplinary founding team, high technological barriers, products that enhance quality of life and well-being, and immense market potential. We are privileged to have had the opportunity to collaborate with the team since the company's early stages, and we are delighted to witness every step of its growth."

Founded in 2010, Yuandu Ventures is a venture capital firm focused on early-stage startups. Since its inception, it has managed five funds, consistently adhering to a boutique and long-term investment strategy to identify outstanding founders and cultivate exceptional entrepreneurs. To date, Yuandu Ventures has invested in over 60 startups, many of which have achieved significant commercial success. The firm’s investment focus primarily centers on technology-driven transformation of traditional industries, with a strong emphasis on hard tech sectors such as information technology, artificial intelligence, smart manufacturing, and semiconductors. Notable portfolio companies include Maxscend Microelectronics (SZSE: 300782), GigaDevice (SSE: 603986), Souche, Quna, Bangbangxing, Juge Electronics, and Taishen Technology.

Vision Plus Capital is a venture capital firm focused on early-stage startups in the "AI+" sector. Co-founded by three industry veterans—Cheng Hao (founder of Xunlei), Tian Hongfei, and Jiang Ping—the institution concentrates its investments on the integration of AI with robotics, enterprise services, and related industries. The core team of Vision Plus Capital possesses extensive experience in successful entrepreneurship and corporate management, complemented by strong technical backgrounds and a global perspective. Dedicated to uncovering and pioneering the true value of AI across various sectors, the firm has established itself as a specialized emerging institution in the AI investment landscape.

Foothill Ventures is a venture capital fund based in Silicon Valley, United States. We focus on investing in U.S.-based technology startups, particularly technical teams with significant growth potential in cross-border markets. Our investment philosophy is to identify early-stage, exceptional, and interdisciplinary technology teams, and grow alongside them through our capital and expertise. Among our 12 partners, 10 hold doctoral degrees, and the group collectively holds over 150 patents. We understand and value the close ties and differences between China and the United States: all of our partners have a proven track record of successful entrepreneurship, cross-border operational experience spanning both markets, and executive leadership backgrounds at iconic Silicon Valley technology companies.