Huashen Shengdian Completes Angel Funding Round to Accelerate Development of Pelvic Surgery Neuromonitoring Device

VCBeat recently learned that,Beijing NEUROFLAG Medical Technology Co., Ltd. (hereinafter referred to as “NEUROFLAG”) has completed its angel round of financing, led by TusStar Venture Capital and followed by Wuxi Cenglin. The funds raised in this round will accelerate the R&D progress of NEUROFLAG’s first pelvic surgical procedure monitoring device, expand R&D efforts in the field of intraoperative neuromonitoring within neurophysiology, and further expand the technical R&D team, among other initiatives.。

NEUROFLAG was co-founded by Professor Liu Xianzeng, an international leader and domestic pioneer in the field of intraoperative neuromonitoring, and Dr. Liu Jingyi, who holds a Ph.D. from the Department of Neurology at Beijing Tiantan Hospital. The company is dedicated to developing devices and consumables for various intraoperative neuromonitoring applications, aiming to maximize neural protection for patients and reduce intraoperative risks and postoperative disability rates.

The NEUROFLAG team comprises multidisciplinary talent spanning clinical practice, engineering, R&D, and management. More than half of its R&D staff hold master’s degrees or higher, and multiple engineers boast over 20 years of experience in medical device development. The team also receives support from experts at prestigious institutions such as Tsinghua University, Peking University, and the Chinese Academy of Medical Sciences. With extensive clinical experience and robust scientific research capabilities, NEUROFLAG develops products that address critical clinical pain points and are grounded in solid theoretical foundations.

Professor Liu Xianzeng, one of the founders, has engaged in clinical and scientific research in the field of intraoperative neuromonitoring for over 30 years at Harvard University, Dartmouth College, Peking Union Medical College, and the Health Science Center of Peking University. He serves as the Asian Representative of the International Society of Intraoperative Neurophysiological Monitoring and as an expert at the Center for Medical Device Technical Evaluation of the National Medical Products Administration. As a leader in multiple specialist groups and committees under the Chinese Medical Association and the Chinese Medical Doctor Association specializing in neurophysiology, he has authored numerous expert consensus statements and operational guidelines in the field of intraoperative neuromonitoring. Professor Liu enjoys extensive international influence in this domain.

Virtually all surgical procedures carry a risk of neurological impairment. Reducing surgical risks to enhance safety and efficacy remains a perpetual goal for surgeons. Intraoperative neuromonitoring (IONM) plays a pivotal role in improving surgical precision, preventing iatrogenic injury, mitigating surgical risks, and avoiding irreversible damage to neural structures. By mapping nerve distribution and monitoring neural function in real time during surgery, IONM provides accurate and objective indicators for assessing surgical prognosis, thereby becoming an indispensable component of modern surgical practice.

According to a report by Bizwit Research & Consulting, the global intraoperative neuromonitoring market size reached RMB 3.042 billion in 2021 and is projected to reach RMB 4.105 billion by 2027, growing at a compound annual growth rate (CAGR) of 5.19%. Driven by increasing life expectancy, the rising prevalence of chronic diseases, the growing trend toward early detection and treatment of diseases, and patients’ heightened expectations for postoperative quality of life, intraoperative neuromonitoring is being increasingly adopted across a broader range of surgical procedures, demonstrating significant growth momentum.

Indications for pelvic surgery include urinary tract tumors, rectal tumors, and cervical lesions. For a long time, existing intraoperative monitoring protocols for pelvic surgery have failed to meet clinical needs. The resulting postoperative complications include fecal and urinary incontinence, urinary urgency, tenesmus, dysuria, defecatory difficulty, erectile dysfunction, and vaginal dryness, which severely impair patients' quality of life. According to relevant literature, over 10 million pelvic surgeries are performed annually worldwide. Due to the widespread lack of intraoperative nerve monitoring, more than 3 million new cases of postoperative nerve injury occur each year, with a steady upward trend.

NEUROFLAG Pelvic Surgery Electrophysiological Monitoring System pioneers the integrated acquisition of multiple composite indices, combining high sensitivity with accuracy to achieve both active mapping of nerve distribution and passive monitoring of neural activity. This approach maximizes nerve preservation for patients, thereby preventing postoperative disabilities. The system features a novel physical design for monitoring consumables, enabling non-invasive and painless monitoring, which significantly reduces operational complexity and surgical preparation time. By focusing on clinical needs, it incorporates an intuitive, user-friendly UI that automatically assists surgeons in interpreting nerve function, ensuring ease of use and efficiency. The NEUROFLAG Pelvic Surgery Electrophysiological Monitoring System is poised to reduce postoperative nerve injuries in over one million pelvic surgeries in China and more than two million globally.

NEUROFLAG has successfully passed preclinical animal studies. By simulating pelvic surgery scenarios in animal models, the system rapidly maps nerve distributions and accurately monitors all post-stimulation physiological parameters, thereby validating the efficacy of the prototype. Currently, NEUROFLAG has filed eight core patent applications, three of which have been granted.

In the future, NEUROFLAG will start by creating the world’s first multimodal neurophysiological monitoring system for the pelvic region, continue to develop intraoperative neuromonitoring devices and consumables applicable to various surgical procedures, optimize existing solutions, achieve a breakthrough in domestically produced high-end medical devices, and provide Chinese solutions to global clinical challenges.

Dr. Jingyi Liu, Founder of NEUROFLAGNEUROFLAG expressed its sincere gratitude to the investors in this round for their recognition and trust, which will fuel the company’s rapid development in the next phase. Over the past year, we demonstrated exceptional execution capabilities in establishing our R&D platform, validating technical solutions, and securing intellectual property rights. Adhering to the philosophy of “Technology Safeguarding Health,” we aim to create a new generation of specialized intraoperative neuromonitoring (IONM) solutions to address the clinical challenge of high incidence rates of postoperative nerve injuries. The NEUROFLAG team, deeply rooted in frontline scientific research and clinical practice, leverages extensive medical device engineering experience from both domestic and international markets to seize the burgeoning opportunities in the field of intraoperative neuromonitoring.

TusStar Venture CapitalStatement: Neuroscience is rapidly becoming a global hotspot. TusStar Venture Capital closely monitors developments in this field and is committed to identifying startups with capabilities in innovative medical device development and potential for international market expansion. NEUROFLAG focuses on indications with significant unmet clinical needs in the field of intraoperative neuromonitoring, developing proprietary solutions. The founding team has long been engaged in scientific research and clinical practice in neuroscience, possessing both the ability to identify medical device needs and to translate R&D into commercial products. We eagerly anticipate more exciting R&D progress and subsequent pipeline布局 from NEUROFLAG.

Wuxi CenglinStatement: The neuroscience industry has consistently been a high-growth, high-barrier sector. NEUROFLAG possesses independent intellectual property rights and a professional team, with its founding members having deep clinical expertise over many years and a keen sensitivity to clinical needs. Currently, the domestic intraoperative neuromonitoring market holds immense potential, with significant unmet needs, representing a key strategic focus for NEUROFLAG. The world’s first pelvic intraoperative neuromonitoring system developed by NEUROFLAG has achieved comprehensive innovation in monitoring parameters, product structure, and manufacturing processes, offering strong extensibility of its technology platform. Wuxi Cenglin aims to collaborate with NEUROFLAG to bring benefits to a broad patient population through innovative technologies and products.

TusStar Venture Capital, established in 2014, is an investment management platform focused on early-stage deep tech. Its origins trace back to Tsinghua Science Park, founded in 1994. Since proposing the "incubation + investment" model in 1999, TusStar has annually reinvested its own capital to support technological startups, fostering a cohort of listed technology companies and specialized, sophisticated, distinctive, and innovative enterprises. Guided by its mission to "facilitate the commercialization of scientific and technological achievements, cultivate innovative talent, and incubate innovative enterprises," TusStar Venture Capital adheres to the investment philosophy of "technological innovation and people-centricity." It strategically positions itself at the source of innovation, gains deep insights into the growth patterns of enterprises and individuals, and empowers business development through ecosystem enablement. Over the years, its investments have concentrated on next-generation information technology, high-end equipment, biomedicine, new energy and new materials, and enterprise services, producing notable portfolio companies such as Hyperstrong, Bluepha, Nuclei System Technology, Knowm, Link-An Technology, Panghu Technology, Topview Medical, CytoNiche, Bosun Optoelectronics, and Yanfeng Technology.

Wuxi Cenglin has established in-depth collaborations with top-tier academic and research commercialization platforms such as Tsinghua University, Peking University, and the Chinese Academy of Sciences, as well as with innovation hubs and incubation platforms including Zhongguancun and the Tsinghua Science Park. Focusing on technological innovation, the company is dedicated to accelerating the commercialization of scientific and technological achievements and fostering the growth of tech elites. It prioritizes high-potential investment sectors such as frontier technologies, new energy and intelligent connected vehicles, advanced materials, and biopharmaceuticals.

The core management and advisory team of Wuxi Cenglin graduated from top-tier domestic and international institutions such as Tsinghua University and Peking University. The team has participated in investments in listed companies including GigaDevice, Maxscend Microelectronics, and Keyuan Technology, as well as emerging enterprises such as Qingyun Zhitong, SuperStar Future, Qike Quantum, and Yuanbao Technology.