Keyue Medical Secures Tens of Millions in Pre-A Funding to Accelerate Commercialization of Non-Invasive Neuromodulation Products

VCBeat has learned that Keyue Medical (Suzhou) Co., Ltd. (“Keyue Medical”) recently completed a Pre-A financing round worth tens of millions of yuan. The round was led by Hefeng Houai and Yisheng Phase I Fund, with participation from Sichuan Zhenghexiang Fund and other investors. The proceeds will be primarily used for the product development, clinical trials, and market expansion of non-invasive neuromodulation devices.

According to statistics from the World Health Organization (WHO), mental disorders have become the greatest burden on China’s healthcare system, with over 100 million people suffering from depression and anxiety disorders. Depression significantly increases the risks of suicide, school dropout, and dementia, making prevention and treatment an urgent priority. Current treatment modalities primarily include pharmacotherapy, psychotherapy, and physical therapy. Physical therapy, also known as non-invasive neuromodulation, has emerged as an increasingly important clinical treatment option due to its lower side-effect profile and significant therapeutic efficacy.

Keyue Medical is dedicated to the research, development, and manufacturing of non-invasive neuromodulation therapeutic devices and portable monitoring equipment in the field of the central nervous system. The company focuses on precise monitoring and treatment solutions for depression, anxiety, insomnia, and cognitive disorders, with a product portfolio covering physiological monitoring, auxiliary diagnosis, therapeutic intervention, and efficacy evaluation. Keyue Medical holds core proprietary technologies in the field of non-invasive neuromodulation, having filed over 70 related patents, including 11 granted invention patents. The company has participated in one key R&D project funded by the Ministry of Science and Technology of China and one key R&D plan supported by the Shaanxi Provincial Department of Science and Technology. Continuously focusing on the prevention and treatment of psychiatric and neurological disorders, Keyue Medical has jointly established R&D centers and technology transfer bases with multiple universities, forming a comprehensive technology transfer system that encompasses scientific innovation, technological breakthroughs, and commercial validation, thereby laying a solid foundation for product innovation.

Keyue Medical pioneered the development and launch of a non-invasive vagus nerve stimulation system in China, innovatively proposing an integrated intelligent diagnosis and treatment solution featuring dual functions of neural stimulation and physiological assessment. By employing individualized resonance breathing-guided vagus nerve stimulation, combined with a personalized vagus nerve stimulation parameter library constructed through a feature modeling system based on big data from sleep EEG and ECG, this technology achieves personalized, precise, and digitalized treatment modalities. It also ensures that the entire treatment process is evaluable and controllable, representing a global first. The company has successively launched multiple products, including transcutaneous low-frequency vagus nerve stimulators, transcranial microcurrent stimulators, transcranial direct current stimulators, transcranial magnetic stimulators, multi-channel sleep EEG monitoring devices, and automated sleep EEG data analysis software.

Moving forward, Keyue Medical will fully integrate market demand with scientific research, focusing on the deepening and iteration of physiological signal acquisition technology and non-invasive neuromodulation technology. The company will continue to advance clinical research, refine its product portfolio, expand sales channels, and enhance talent quality, thereby providing safer and more effective comprehensive solutions for medical institutions and patients alike.

Zheng Bin, Founder of Keyue Medical, stated“We are deeply honored to have received the support and recognition of professional investors from all sectors. This not only affirms our past achievements but also injects strong momentum into our future endeavors. The proceeds from this financing will significantly accelerate the R&D, regulatory approval, and market expansion of our core pipeline products. Keyue Medical will continue to leverage technological innovation to deliver superior product experiences to patients worldwide suffering from depression, anxiety, and insomnia.”

Regarding this round of investment, the investors stated“Mental disorders are characterized by prolonged treatment cycles, severe harm, and high costs, with traditional therapeutic approaches presenting numerous drawbacks. Keyue Medical focuses on the prevention and treatment of psychiatric and neurological disorders, having implemented an integrated solution for diagnosis, treatment, and assessment at both hospital and home settings. Its proprietary personalized neuromodulation technology has demonstrated significant efficacy and gained recognition from many prestigious universities and Grade A tertiary hospitals. With a stable and pragmatic management team, we have high expectations for Keyue Medical’s future development.”

Hefeng Houai was established in 2023 as a sub-fund of the Suzhou Angel Investment Guidance Fund (Limited Partnership). Initiated by Ailong Technology, a company listed on the STAR Market, Hefeng Houai is an equity investment fund focusing on new medical infrastructure, smart medical devices, and smart hospitals. It invests in early-stage projects with high growth potential. Centered around Ailong Technology’s industrial chain, the fund invests in, incubates, and cultivates small and medium-sized enterprises (SMEs), empowering portfolio companies through the listed company’s channels, technology, and brand resources. This strategy aims to expand the listed company’s scale and facilitate local industrial cluster development. The primary exit route is mergers and acquisitions (M&A), supplemented by other channels such as independent IPOs and equity transfers, thereby delivering returns to investors.

Yisheng Capital specializes in early-stage equity investments in high-end medical device startups featuring proprietary technologies. The management team boasts extensive experience in the healthcare industry, broad industry resources, and rich venture capital expertise. With strong support from numerous highly influential clinical academicians, industry elites, and medical-engineering innovation forces in China, Yisheng Capital continuously focuses on emerging technologies and new directions in the medical device sector. Upholding a spirit of craftsmanship, the firm researches, invests in, and nurtures leading technology enterprises, with a particular emphasis on building an innovative ecosystem centered on pan-vascular medical devices. It is unwaveringly committed to establishing itself as the most professional early-stage investment institution in the medical device industry.

Zhenghexiang is a comprehensive health industry group integrating chain-operated retail pharmacies, chain clinics, pharmaceutical wholesale, health insurance services, internet healthcare, and the production of traditional Chinese medicine (TCM) decoction pieces. Established in 2003, the group currently comprises nine retail chain companies, one franchise chain company, three wholesale companies, one clinic chain company, one insurance sales company, one TCM decoction pieces manufacturing plant, and one company dedicated to internet healthcare industry services. The group employs over 6,300 staff members, including more than 5,000 pharmaceutical and medical professionals. It operates over 2,000 outlets (1,800 pharmacies and nearly 200 clinics) across Sichuan, Guizhou, Chongqing, Hunan, and other provinces and municipalities. The total business area exceeds 200,000 square meters, with over 20,000 SKUs offered. The group serves more than 10 million active members.