Huichuang Medical Secures Nearly RMB 100 Million Series A+ Financing to Empower Diagnosis and Treatment of Brain Disorders with Functional Near-Infrared Spectroscopy

VCBeat (WeChat: vcbeat) has learned that recently,Danyang Huichuang Medical Equipment Co., Ltd. (hereinafter referred to as "Huichuang Medical") has completed a Series A+ financing round of nearly RMB 100 million.。This round of financing was jointly led by TusPark Ventures and Sunland Capital, with follow-on investment from Harmony Capital. Changhai Capital served as the exclusive financial advisor for this round. The proceeds will primarily be used to promote the sales of the company's existing near-infrared (fNIRS) brain function diagnostic products, as well as for the development and strategic deployment of therapeutic products for brain functional disorders.

Previously, Huichuang Medical has completed its angel, Pre-A, and Series A funding rounds, totaling tens of millions of RMB.

The brain is the most vital organ in the human body, and the brain science and healthcare market holds immense potential.In 2023, the global market size for brain/neurological devices is projected to reach USD 13 billion., China also launched the "Brain Science Initiative" in 2020 with a budget exceeding 54 billion RMB. Currently, there is high demand for brain function-related assessments, prediction of rehabilitation training efficacy, and evaluation of treatment efficacy. Meanwhile, this patient population has a strong demand for non-pharmacological therapies, all of which present excellent market opportunities for medical enterprises in the brain science sector.

By selecting appropriate near-infrared light wavelengths and their number,fNIRS can accurately detect changes in hemoglobin concentration in the human brain, thereby enabling its effective application in the diagnosis and prognostic assessment of functional brain disorders, and is thus referred to as a "functional MRI worn on the head."The clinical value of fNIRS has been recognized by hundreds of SCI-indexed publications and the latest clinical consensus, and it is widely utilized for diagnosis and examination across departments such as psychiatry, neurology, pediatrics, and rehabilitation. Furthermore, fNIRS devices are highly favored by clinicians due to their capacity for dynamic monitoring, robust resistance to motion artifacts and electromagnetic interference, superior applicability for special populations (e.g., patients with poor compliance, infants and young children, and individuals with metallic implants), support for long-term continuous monitoring or repeated assessments within short intervals, minimal environmental requirements, and adaptability to routine clinical department settings.

Meanwhile, fNIRS-based brain-computer interface (BCI) technology possesses unique advantages, including high safety, precise targeting, and proven clinical efficacy, for the treatment and rehabilitation of conditions such as autism, stroke, cognitive impairment, and depression across hospital, community, and home-based settings, demonstrating broad application prospects.

Founded in 2016, Huichuang Medical is a leading enterprise in the field of functional near-infrared spectroscopy (fNIRS) brain imaging products. In the scientific research market, it has established a reputation for high-end products, supporting high-level brain science research at top-tier research institutions such as Tsinghua University and the Chinese Academy of Sciences system. In the clinical market,Huichuang Medical's products feature high resolution and comprehensive software operation and configuration options, and the company has launched the world's first fNIRS device with over 100 channels to obtain a medical device registration certificate., overcoming the limitation of imported products (52 channels) that cannot achieve whole-head imaging; its portable model can be utilized for dynamic/static monitoring across various scenarios, is poised to obtain a medical device registration certificate, and comprehensively leads in performance; meanwhile,Compared to imported products, the company's offerings also hold a cost advantage, enabling rapid promotion and deployment to primary hospitals and even community screening settings (such as depression, cognitive impairment, Alzheimer's disease, etc.).

Figure: Huichuang Medical Near-Infrared Brain Functional Imager

As a leading expert in China's brain science field, Professor Wang Dafa, Founder and Chief Scientist of Huichuang Medical, has dedicated nearly two decades to in-depth research on near-infrared brain function, establishing a profound academic foundation and accumulating extensive industry experience. In 2021, Professor Wang collaborated with experts across psychiatry, neurology, pediatrics, and rehabilitation medicine to co-publish China's first clinical consensus on fNIRS, significantly elevating the academic impact of precision diagnosis through near-infrared brain functional imaging.

Professor Wang Daifa stated that brain science is a key development area in the national 《14th Five-Year Plan》 and 《Long-Range Objectives Through the Year 2035》. It has become a focal point and priority for governments and venture capital worldwide. Breakthroughs in its related frontier technologies will benefit hundreds of millions of patients with brain diseases and unlock a massive market worth trillions of US dollars. The diagnosis and treatment of brain diseases, along with the advancement of brain science, rely heavily on the support of fNIRS, a dynamic and quantitative functional brain imaging modality. As a pioneer in the fNIRS field, Huichuang Medical boasts a world-class team comprising innovative R&D professionals and seasoned marketing experts. Deeply engaged in the research, development, and application of fNIRS, the company is committed to reliably safeguarding the brain health of all humanity.

Currently, Huichuang Medical has established a comprehensive patent portfolio spanning the entire workflow of fNIRS signal acquisition, detection, image processing, and model output, forming a solid technical barrier. Following the completion of this funding round,Based on a near-infrared light theranostic technology platform, the company will develop a series of diagnostic and therapeutic products to establish a complete closed-loop system spanning from precision diagnosis to precision treatment and extending to out-of-hospital applications., serving over 300 million patients with brain-related diseases.

Liu Huiqin, Managing Director of Lead Investor TusPark Venturesstated: “The advancement of brain science holds profound value and significance for humanity’s understanding of its own neurological and psychiatric domains. Functional near-infrared spectroscopy (fNIRS) brain imaging is among the latest brain information acquisition technologies and research tools. It offers unique advantages, such as high temporal resolution and freedom from constraints on subject movement, enabling broad application scenarios. The Huichuang Medical fNIRS brain imaging system features a high channel count and comprehensive research tool functionalities, providing vital support for brain science researchers and clinicians in China. TusPark International Health Fund hopes to collaborate with Huichuang Medical to advance the development and progress of brain science research, ultimately benefiting more patients.””

Nie Hongxin, Managing Partner at Sunland Capital, Co-lead Investorstated: "Leveraging the founding team's profound technical expertise in neuroscience, Huichuang Medical has launched a quantitative diagnostic tool for functional brain disorders that leads globally in performance, and is building upon this foundation to develop a platform for the diagnosis and treatment of such conditions. The company emphasizes collaboration with clinical experts, closely aligning with real-world clinical needs to promote consensus for clinical applications, thereby enabling patients to truly benefit from the enhanced diagnostic and therapeutic outcomes brought by cutting-edge technological advancements. Sunland is honored to partner with Huichuang, and we will fully leverage our industry resources to support the company in becoming a leader in this specialized sector."”

Harmony Venturesstated: "The diagnosis and treatment of various brain-related diseases represents a major challenge for both scientific research and clinical practice. In particular, diagnostic methods for psychiatric and neurodegenerative diseases have seen limited breakthroughs over the years. This project has achieved a significant breakthrough and has already been validated in clinical practice and the market, demonstrating clear advantages in objectivity, functionality, and patient adaptability. Leveraging its strong R&D capabilities in the field of near-infrared brain function, the founding team is strategically developing therapeutic devices for brain-related diseases, aiming to establish a closed-loop diagnosis and treatment system for these conditions."”

Wang Keshu, Partner at Changhai Capitalstated: "We are pleased to serve as the exclusive financial advisor to assist Huichuang Medical in swiftly closing its Series A+ financing round. Professor Wang, the founder of Huichuang Medical, has cultivated profound expertise in brain science over the years, which is now yielding significant breakthroughs. The company uniquely integrates strong academic capabilities, robust product development expertise, and keen market acumen. After establishing a solid reputation in the research market, its first product rapidly transitioned to broad clinical adoption and has helped establish new clinical standards. Moving forward, Huichuang will deliver more core solutions for the diagnosis and treatment of related diseases, addressing therapeutic challenges that remain difficult to tackle with existing pharmaceuticals. We look forward to seeing the company emerge as a global leader in the field of brain science."”

TusPark Ventures is a key venture capital management platform within Tsinghua University's innovation ecosystem. With a long-term focus on investing in technology-driven innovative enterprises, it primarily targets high-tech, high-growth companies with core competitiveness at the early and growth stages, with a particular emphasis on the life sciences sector, and has already invested in a portfolio of outstanding, high-quality medical device enterprises.

Founded in 2014, Sunland Capital is a specialized healthcare investment fund dedicated to early-stage and growth-stage investments in the healthcare sector. It focuses on high-growth healthcare sub-sectors such as biopharmaceuticals and medical devices (including in vitro diagnostics and gene technology, minimally invasive intervention, implantable devices, minimally invasive surgical instruments, and medical robots), and has invested in nearly 40 leading healthcare enterprises. Sunland Capital’s core team consists of top-tier professionals, including founders of publicly listed companies and experts in biotechnology and medical equipment, all boasting over two decades of healthcare industry experience. With a profound understanding of the fundamental dynamics within healthcare sub-sectors and extensive insight into the industry’s long-term development trends, the team precisely and efficiently accelerates the rapid growth of its portfolio companies.

Harmony Ventures is a venture capital management platform with a 15-year track record in investment. Its healthcare and biotechnology fund focuses on investments in innovative medical devices, pharmaceuticals, and cutting-edge biotechnology. The fund strategically targets sub-sectors including novel cell and immunotherapy technologies, nucleic acid and gene-based therapeutics and vaccines, omics-based diagnostic testing methods and tools, and advanced medical devices and consumables. It has successively invested in high-quality companies such as Rongzhi Biotech, Pintai Optoelectronics, and Shangjian Biotech.

Established in 2021, Changhai Capital is a financial advisory firm specializing in the healthcare sector, providing in-depth and customized financing strategies and services to enterprises. The team possesses extensive industry expertise across medical devices, IVD, and healthcare services, and has led and participated in the financing of numerous prominent companies, facilitating their rapid growth and maximizing enterprise value.