NewCloud Medical Secures RMB 20 Million Series A Funding to Advance Pain Specialty Medical Consortium and Innovative Device Development

VCBeat (WeChat ID: vcbeat) has learned that New Cloud Medical, a leading pain-specialty medical consortium in China, recently announced the completion of its RMB 20 million Series A financing round. The round was led by Jinke Junchuang, with participation from Legend Star and Zhonglu Capital. Zhao Yun, founder of New Cloud Medical, stated that the funds will be used to accelerate the development of the company’s B2B healthcare service system and to support the research and development of innovative medical devices for pain treatment.

Pain medicine is the youngest specialty in the field of medicine. Document No. 227, issued by the Ministry of Health in 2007, mandated that all hospitals at Level II and above across China establish independent pain departments, thereby driving significant progress in pain management in China over the past decade.

Zhao Yun stated that pain management has established relatively mature models and systems abroad, whereas in China, it is still in its nascent stages. However, compared to a decade ago, there has been a significant shift in public understanding and attitudes toward pain management. Previously, people often regarded physical pains such as neuralgia, lower back pain, shoulder and neck pain, and joint pain merely as symptoms. Now, a growing number of people recognize that many persistent, non-healing physical pains have actually evolved into chronic diseases. Relevant statistical data show that the population of chronic pain patients in China currently exceeds 160 million, with approximately 80 million requiring treatment. In 2017, only over 9 million chronic pain patients received hospital-based treatment throughout the year.

“Elderly people are the population most susceptible to chronic pain. In China, the annual growth rate of patients with chronic diseases is basically consistent with the pace of population aging, and the majority of these elderly individuals are distributed in second- and third-tier cities with less developed medical conditions,” said Zhao Yun. “Therefore, we aim to start with secondary hospitals, leveraging the National Key Specialty·China-Japan Friendship Hospital Pain Specialist Medical Consortium, the national-level telemedicine platform, top-tier hospital brands, and a pool of expert resources. By fully utilizing the advantages of the pain management discipline, we will establish a hierarchical diagnosis and treatment system via a national, provincial, municipal, and county-level pain cloud platform, providing specialized pain management solutions to public secondary hospitals at the municipal and county levels across China.”

Currently, New Cloud Medical has partnered with more than 20 medical institutions, six of which have already opened their pain management departments. Zhao Yun stated that following this round of financing, New Cloud Medical will accelerate its business expansion. The company expects to provide B2B medical services to 10 medical institutions this year and will also launch a chain of pain management centers specializing in ambulatory surgery.

Wang Yi, an investor at Legend Star, stated, “As people’s consumption levels and health awareness rise, the pain threshold will undergo weakening compensatory changes, and the demand for pain treatment will experience a structural transformation.” Quoting Liao Jieyuan’s remark, “The further China’s healthcare sector penetrates into grassroots levels, the more solid its commercial foundation becomes,” our judgment on the market demand for grassroots medical services has been validated through New Cloud Medical. At the time of our investment, New Cloud Medical was merely a startup, but it boasted support from China’s top-tier pain management experts. We encouraged Mr. Zhao Yun to boldly innovate, truly decentralizing medical resources to the grassroots level to address the practical needs of primary care, in alignment with the tiered diagnosis and treatment system advocated by the state.

New Cloud Medical, established in 2016 and headquartered in Beijing, specializes in the field of pain management and is a leading pain specialty medical consortium in China. Its core business model involves providing specialized pain management solutions to public secondary hospitals at the municipal and county levels across China, building a nationwide tiered chain of pain specialty medical institutions characterized by ambulatory surgery, and promoting advanced pain diagnosis and treatment technologies and equipment.

Jinke Junchuang Investment Management Co., Ltd. was established in 2014 and is headquartered in Beijing. As a venture capital firm specializing in early- to mid-stage technology enterprises, it primarily invests in innovation-driven tech companies. Currently, Jinke Junchuang Capital manages three funds, and by the end of 2018, its portfolio had exceeded 40 invested companies.