Zhide Inspection Secures RMB 20 Million Pre-A Round to Advance Precision Ophthalmic Diagnostics

VCBeat has learned that on April 8, 2021, Beijing Zhidezhen Medical Inspection Co., Ltd. (hereinafter referred to as “Zhidezhen Medical”), a specialized institution engaged in precise ophthalmic testing, announced the completion of its RMB 20 million Pre-A round of financing. This round was led by Northern Light Venture Capital, with follow-on investments from MARATHON VENTURE PARTNERS and Dr. Tan Zhi.

Driven by the deepening trend of population aging and changes in eye usage habits, the demand for ophthalmic care is steadily rising. According to data from the Third China Eye Health Conference, the number of patients with eye diseases in China exceeds 150 million, far surpassing that of European and American countries. The incidence rates of ophthalmic conditions such as uveitis, retinal diseases, and allergic conjunctivitis are continuously increasing.

Ophthalmology has become a rapidly expanding, massive market. The global market size is approximately USD 40 billion, while the domestic (Chinese) market stands at USD 3.2 billion. However, there are few high-quality investment targets in this sector, and innovative companies emerging within China’s ophthalmology field are particularly scarce.

Zhidezhen Medical stands as a representative enterprise in the field of precision ophthalmic diagnostics. It operates a domestically leading, comprehensive third-party testing platform for complex and refractory eye diseases, covering multiple specialized areas of precision ophthalmic testing. These include laboratory-developed tests (LDTs) and in vitro diagnostics (IVD) for uveitis; IVD for fundus diseases such as retinal and choroidal disorders; and point-of-care testing (POCT) for ocular surface diseases like allergic conjunctivitis and dry eye disease. The company provides one-stop services to clinicians and patients, encompassing etiological testing, consultation recommendations, medical advisory, and scientific research collaboration.

Image source: Essence Securities

Compared to competitors, Zhidezhen Medical’s core advantages lie in its leading foundation in ocular disease detection and its extensive accumulation of clinical and testing data. The company’s core competitive barrier stems from its proprietary technology for micro-volume detection of intraocular fluids. Currently, its business covers 22 provinces, with collaborations spanning over 300 hospitals across China, and it has processed more than 50,000 samples for various ocular diseases. Zhidezhen Medical has established a comprehensive network of self-built channels and cooperative sales channels within the country.

Both the ophthalmic IVD and POCT markets are relatively untapped. Leveraging its accumulated data and technological expertise, Zhidezhen Medical can rapidly develop related applications, as the core technologies underlying these products are shared. The company has already begun to aggressively expand its distribution channels, with IVD and POCT products expected to be launched in phases over the next three to five years, thereby securing Zhidezhen Medical’s first-mover advantage.

Zhidezhen Medical was established in June 2016. It operates a testing, R&D, and production base in Beijing covering over 1,000 square meters, including an 880-square-meter laboratory constructed in strict accordance with ISO 15189 and National Biosafety Level II standards.

Following the completion of this funding round, Zhidezhen Medical will accelerate the R&D of its IVD product portfolio for various ophthalmic diseases, recruit scientific research personnel, and construct production facilities, while also expediting market expansion to provide faster and more precise diagnostic solutions for ophthalmic patients worldwide.

Northern Light Venture Capital, founded by Mr. Deng Feng in 2005, is committed to “empowering world-class Chinese entrepreneurs and cultivating world-class Chinese enterprises.” It has long focused on investing in early-stage, technology-driven innovative companies. To date, it has invested in nearly 400 outstanding enterprises across the TMT, advanced technology, and healthcare sectors. Northern Light Venture Capital entered the healthcare sector in 2009. Over the past decade, its investments have spanned multiple sub-sectors, including medical devices, in vitro diagnostics (IVD), biopharmaceuticals, healthcare services, and E-Health, achieving near-complete coverage of the entire industry chain.

MARATHON VENTURE PARTNERS is an early-stage venture capital fund focused on the digital health and medical technology sector. To date, MARATHON has invested in over 40 companies that are leveraging digital technologies to drive structural transformation in access, efficiency, and payment within China’s healthcare industry.

Dr. Tan Zhi once served as the CEO of 8848.net, where he led his team to build China’s largest e-commerce company and platform in just two years, emerging as a leading figure among internet companies at the time. Since 2004, he has been the Chairman and CEO of Framework Media. During his tenure, he spearheaded the consolidation of the elevator print media market within 11 months, enabling Framework Media to capture over 90% of the market share in elevator print media. The company was subsequently successfully merged into Focus Media, becoming a classic case in capital operations.