HuiChuang Medical Secures Tens of Millions RMB in Series A Funding, Driving Innovation in Precision Diagnosis and Treatment of Brain Functional Disorders

VCBeat (WeChat ID: vcbeat) has learned that Danyang Huichuang Medical Equipment Co., Ltd. (hereinafter referred to as "Huichuang Medical") recently announced the completion of its Series A financing, amounting to over RMB 10 million. This round was led by Qingyuan Capital. Healthcare is a key investment sector for Qingyuan Capital, which previously invested in Huichuang Medical’s Pre-A round in late 2018. Over the past year and a half, Huichuang Medical, leveraging its highly innovative and execution-driven team, has further solidified the leading position of its core products in the niche segment of brain function medical devices, thereby earning continued confidence and full support from Qingyuan Capital. The proceeds from this financing round will be primarily used for R&D investment, market expansion, and supplementing working capital.

In China, nearly 100 million people suffer from brain functional disorders such as cerebral palsy, attention deficit disorders in children, epilepsy, stroke, Parkinson’s disease, cognitive impairment, Alzheimer’s disease, and mental illnesses, with incidence rates rising year by year. For a long time, there has been a lack of effective quantitative techniques for assessing brain function in these patients under naturalistic conditions. For instance, evaluating the recovery of the motor cortex after stroke requires observing brain activity during various active or passive limb movements; assessing mental state and cognitive function requires patients to perform various cognitive or behavioral tasks, such as calculations, memory exercises, and motor activities. However, functional magnetic resonance imaging (fMRI) is typically suitable only for resting-state brain function examinations. Electroencephalography (EEG) also faces limitations, including significant motion artifacts and low spatial resolution. Consequently, the assessment of brain function recovery relies heavily on physicians’ subjective interpretations and experience, resulting in limited quantifiability and accuracy.

As a new generation of quantitative brain functional imaging technology, near-infrared brain imaging offers greater flexibility in application scenarios compared to techniques such as functional magnetic resonance imaging (fMRI). It enables high-resolution quantitative assessment and evaluation of brain function while patients are moving, speaking, or undergoing treatment, thereby providing unprecedented technical means for the diagnosis and treatment of brain disorders.

Dr. Wang Daifa, Tenured Associate Professor at Beihang University; Chief Scientist, Founder, and Chairman of Huichuang Medical

Dr. Wang Daifa has dedicated over a decade to research in near-infrared brain imaging. He has led national-level projects, including the National Major Scientific Instrument Development Project, the National Key R&D Program, and projects funded by the National Natural Science Foundation of China. Dr. Wang has received numerous honors, such as the Jiangsu Shuangchuang Talent, Zhenjiang Jinshan Elite, Beihang University Young Top Talent, First Prize for Outstanding Doctoral Dissertation at Tsinghua University, and Outstanding Undergraduate Thesis Award at Tsinghua University. The high-performance near-infrared brain imaging product developed under his leadership boasts world-leading core metrics and is the first ultra-high-channel (>100 channels) near-infrared brain imaging system (NirScan) globally to receive NMPA medical device registration certification, making whole-brain imaging possible. 

Dr. Pan Haifeng, General Manager and Partner at Qingyuan Investment, stated that brain science research and development, along with the diagnosis and treatment of brain functional disorders, will be a global hotspot over the next decade, expected to correspond to a massive market valued in the trillions of dollars. Near-infrared brain imaging effectively addresses the critical challenge of directly observing brain functional activity during the diagnosis and treatment of brain functional disorders.

Huichuang Medical specializes in research on near-infrared brain imaging and assessment. Boasting the industry’s premier scientific research team, it has emerged as a leader in the field of near-infrared brain imaging. The company has undertaken numerous national-level projects, including those under the National Key R&D Program, and its products have been demonstrated and applied in more than 60 authoritative Grade A tertiary hospitals and research institutions. In addition to serving as high-end equipment for clinical examination and assessment, Huichuang’s products function as a premium platform for brain functional imaging research, supporting user institutions in publishing over 20 SCI-indexed papers. The high quality of its products has gained extensive recognition from experts both domestically and internationally.

Huichuang Medical boasts an exceptional team that has dedicated years to the research, development, and application of brain function medical devices, demonstrating strong execution capabilities. Qingyuan Capital has increased its investment in Huichuang Medical twice within a year and a half, reflecting our strong confidence and steadfast support for the company’s growth. We are delighted to engage in long-term collaboration with Huichuang Medical to advance the precise diagnosis and treatment of brain functional disorders, ultimately benefiting a vast number of patients with brain diseases.

Qingyuan Investment’s core team has deep ties to Tsinghua University. Since 1999, it has focused on investing in technology-sector companies at the early and growth stages, making it one of China’s earliest established professional management teams specializing in such investments. The firm currently manages funds totaling over RMB 7 billion.

The team has cumulatively invested in over 200 companies across sectors including broad-spectrum IT, healthcare, advanced manufacturing, and clean technology. Among these portfolio companies, 22 have successfully gone public, and more than 100 investments have been exited.

Qingyuan Capital was consecutively selected for Zero2IPO’s “Top 50 Domestic Venture Capital Firms in China” for eight consecutive years from 2010 to 2017, ranking 33rd and 30th, respectively, in the “Top 100 Venture Capital Firms in China” in 2016 and 2017. In 2019, Qingyuan Capital ranked 37th in CVSource’s “Top 50 Best Chinese Venture Capital Firms” and 66th in the “Top 100 Best Venture Capital Firms in China.”

Qingyuan Investment is committed to becoming “a ladder for entrepreneurs’ success and prosperity, and a cradle for listed companies.”