Delta Medical Secures Nearly RMB 150 Million in Series E Funding Led by CDH Investments, Accelerating Leadership in Sports Medicine

VCBeat (WeChat: vcbeat) has learned that on February 8, 2021, Beijing Delta Medical Technology Co., Ltd. (“Delta Medical”), a well-known brand in the sports medicine industry, announced the completion of its Series E financing round of nearly RMB 150 million, less than six months after its previous financing round of over RMB 100 million. This round was led by CDH Investments, with existing shareholders Qiming Venture Partners and Boxing Capital participating as co-investors. The funds will serve as a driving force for Delta Medical to expand its industrial segments, provide strong support for product market promotion, lay a solid foundation for the construction of new production bases, and boost the enhancement of its talent reserves.

Delta Medical, established in 2015, is an international medical technology group integrating research and development, manufacturing, sales, and services. Adhering to its business philosophy of helping patients “rediscover the joy of movement and reignite the vitality of life,” the company has strategically positioned itself across the entire field of sports medicine.

Delta Medical consistently adheres to a research and development philosophy that places equal emphasis on clinical application and technological innovation. In terms of clinical application, the company collaborates closely with renowned experts in the industry to provide optimal solutions for clinical needs, committed to enhancing surgical efficiency and improving final surgical outcomes. Currently, Delta Medical has established high-quality, high-efficiency modern production bases and R&D centers in Beijing, Sichuan, and Liaoning. Technologically, the company focuses on two core areas of sports medicine: new materials and minimally invasive techniques. Its independently developed core products feature proprietary manufacturing processes, biomechanical designs that better conform to human anatomy, and the most advanced precision composite materials, with core technologies leading globally.

In terms of production, quality control procedures are strictly implemented across all stages, including raw material procurement, processing technology, manufacturing processes, and surface treatment. Advanced production equipment, precision quality inspection instruments, and skilled professional operators work in seamless coordination to ensure that every product is safely and effectively utilized in surgical procedures.

In terms of market promotion, Delta Medical has strategically positioned itself across the entire field of sports medicine. The company independently develops and manufactures more than ten types of sports medicine products, including suture anchors, surgical sutures, and button plates. Its sales network covers over 500 medical institutions in provinces, cities, and regions throughout China, establishing Delta Medical as a core force in the domestic sports medicine sector. In 2020, the company established Delta Academy, providing a platform for learning and exchange for physicians, and has held multiple hands-on training workshops across the country. Delta Medical aims to collaborate with physicians for joint development and mutual progress, promoting Chinese academic concepts in sports medicine on the global stage.

Li Jianbo, Co-founder and Chairman of Delta Medical, stated that although the focus on sports medicine in China started later than abroad, it has developed rapidly, with sports medicine gradually becoming one of the most promising sub-sectors in the medical device industry. He expressed gratitude to new and existing investors, including CDH Investments, Qiming Venture Partners, and Boxing Capital, for their recognition and support. Following this round of financing, the company will continue to respond to the national strategy of innovation-driven development, pool collective wisdom to achieve significant accomplishments, strive to fill domestic technological gaps, and build a premium Chinese brand of medical devices. As it continues to grow and expand, Delta Medical will remain deeply rooted in the field of sports medicine, placing equal emphasis on prevention, treatment, rehabilitation, and education, aiming to become a Chinese sports medicine brand that fulfills social responsibilities and earns international acclaim.

Wang Lin, Founding Partner of CDH Investments, stated that with the growing sports-participating population and an aging demographic in China, the demand for treating trauma-related and degenerative conditions associated with sports medicine is rising rapidly. The market is in a phase of rapid development, possessing strong potential and significant social value. We highly recognize the team at Delta Medical; the company adheres to a dual-drive strategy of academic research and technological innovation, and its brand has gained substantial market recognition and consistent acclaim from industry experts. As a key partner of the company, we will continue to support its development.

Gao Jieliang, Executive Director of CDH Innovation and Growth Fund (VGC), stated that the CDH medical team continues to focus on investment opportunities in the medical device sector, adhering to the strategy of “identifying high-quality sectors through industry research, and identifying high-quality companies through sector research.” Through systematic research into the medical device industry, the CDH VGC medical team believes that the sports medicine sector is characterized by high technical and manufacturing barriers, significant market potential with rapid growth, and a low rate of domestic substitution. The team remains firmly optimistic about the development prospects of this sector. Furthermore, in-depth research into the sports medicine sector revealed that Delta Medical has achieved maturity in technology, manufacturing, regulatory registration, academic promotion, and channel development. The company is currently at an inflection point, transitioning from an R&D-focused stage to a period of rapid sales growth. With a strong emphasis on R&D and a robust pipeline of products under development, Delta Medical possesses core competitive advantages for the mid-to-long term. We remain firmly optimistic about Delta Medical’s future prospects and will provide long-term support for the company’s development.

In recent years, CDH VGC’s healthcare team has progressively strengthened its core investment research capabilities by further categorizing the healthcare sector along the dimensions of technology platforms and indications. This approach involves refining specific sub-sectors and analyzing trends to establish a comprehensive and rigorous investment mapping of the healthcare industry. In the field of medical devices, CDH has completed systematic and comprehensive layouts in orthopedics, sports medicine, cardiovascular care, imaging, general surgery, neurosurgery, urology, dentistry, and ophthalmology. Through refined trend analysis of specific sub-sectors, as well as the systematic construction and scanning coverage of an industry project database, CDH strives to grasp the broader direction of the healthcare industry while making forward-looking investment allocations.

CDH Investments, established in 2002, is one of the most influential alternative asset management firms in China. As of 2020, its assets under management exceeded RMB 160 billion. CDH Investments operates across six core business segments: private equity, innovation and growth, securities investment, real estate investment, mezzanine investment, and wealth management. The CDH Innovation and Growth Fund focuses on investing in healthcare, TMT (Technology, Media, and Telecom), and innovative growth opportunities with distinct Chinese characteristics. Managed by a seasoned and highly specialized investment team with a distinctive approach, the fund is committed to driving innovation and development in high-potential growth-stage companies. Leveraging CDH’s outstanding investment performance in healthcare and growth sectors, along with its strategic focus on TMT, the CDH Innovation and Growth Fund has developed unique investment strategies and platform advantages. By drawing on the team’s extensive investment experience, professional judgment, and operational management expertise, the fund comprehensively enhances the value of its portfolio companies.

Qiming Venture Partners was established in 2006 and has successively set up offices in Shanghai, Beijing, Suzhou, Shenzhen, Hong Kong, Seattle, Boston, and the San Francisco Bay Area. Currently, Qiming Venture Partners manages nine US dollar funds and five RMB funds, with total assets under management exceeding USD 5.3 billion. Since its inception, the firm has focused on investing in outstanding early-stage and growth-stage enterprises in sectors such as TMT and Healthcare. To date, Qiming Venture Partners has invested in more than 350 high-growth innovative companies, among which over 110 have achieved exits through listings on exchanges including the New York Stock Exchange (NYSE), NASDAQ, the Hong Kong Stock Exchange, the Taipei Exchange, the Shanghai Stock Exchange, and the Shenzhen Stock Exchange, as well as through mergers and acquisitions. Additionally, more than 30 of these portfolio companies have become industry-recognized unicorns and super unicorns.

Boxing Capital is a specialized investment firm focused on early-stage healthcare investments, founded by partners with extensive experience in medical investing. Currently, the firm manages funds totaling nearly RMB 1 billion, with strategic investments in over 30 innovative medical device and healthcare service projects that hold significant market potential. Many of these portfolio companies have grown into leaders in their respective sub-sectors, and the firm has successfully achieved profitable exits from multiple investments. The limited partners behind Boxing Capital include top-tier domestic fund-of-funds, healthcare industry entrepreneurs, and seasoned investors. Leveraging in-depth industry research, clear investment logic, and comprehensive post-investment management capabilities, Boxing Capital has earned the long-term respect of entrepreneurs and secured ongoing support from its investors, firmly establishing itself as a long-term partner to leading healthcare entrepreneurs and investors in China.