Zhiyu Medical Completes Over RMB 60 Million Pre-A++ Financing to Advance Standardized, Automated BPH Treatment with Hydrojet Surgical Robot

VCBeat has learned at the earliest opportunity that,Beijing Zhiyu Medical Technology Co., Ltd. (hereinafter referred to as "Zhiyu Medical")Recently completed a Pre-A++ round of financing exceeding RMB 60 million. This funding round was led byChende CapitalLead Investor,LegendstarCo-investment, Existing ShareholdersShunwei Capital, Lilly Asia Ventures (LAV), Zhonghai InvestmentContinuous infusion.Fanzhuo CapitalServed as the exclusive financial advisor for this round of financing.

Over the past three years since its establishment, Zhiyu Medical has completed multiple rounds of financing. The funds raised in this oversubscribed round will be used for its core product, metaFlow.^®️Clinical trials of the high-energy water jet autonomous surgical robot (hydroknife surgical robot), and R&D layout for new product pipelines.

Founded in 2021, Zhiyu Medical is a national high-tech enterprise and a Beijing “Specialized, Refined, Differential, and Innovative” SME, specializing in surgical robots and intelligent diagnostic and therapeutic equipment. The company focuses on deploying leading innovative products for minimally invasive urological surgery, interventional procedures, and natural orifice surgeries.

Its independently developed metaFlow^®️High-Energy Water Jet Autonomous Surgical Robot (Waterjet Surgical Robot) is a pioneering and internationally leading innovative medical product first developed in China. It achieves dual innovations in robotic technology and clinical surgical techniques for transurethral resection of the prostate (TURP) in benign prostatic hyperplasia (BPH) surgery, and the product has entered registration clinical trials.

Urology represents a substantial single-specialty market globally. According to QYResearch's "Global Urology Devices Market Report 2023-2029," the global market size for urology devices is projected to reach USD 7.25 billion by 2029, with a compound annual growth rate (CAGR) of 7.8%.

The immense potential of the urology sector has attracted fierce competition among investors. In May 2021, Olympus completed its acquisition of Medi-Tate, an Israeli medical device company; in September of the same year, Boston Scientific announced the completion of its $1.07 billion acquisition of Lumenis’s global surgical business; around the same time, GE Healthcare announced its $1.45 billion acquisition of BK Medical; and in October 2023, Laborie Medical acquired Urotronic, Inc., a company specializing in urinary drug-coated balloons, for $600 million. This series of high-profile mergers and acquisitions underscores the strategic importance that industry giants place on the urological products market.

Among these, benign prostatic hyperplasia (BPH) is one of the most prevalent conditions in urology. BPH is an age-related disease, with its incidence increasing with age; it affects more than 50% of men aged 60 and rises to as high as 83% by age 80. Furthermore, BPH is a slowly progressive condition, with symptoms worsening gradually as patients age, potentially leading to complications such as bladder stones, acute urinary retention, and renal impairment [1].

China has a vast patient population with urinary system diseases, and as the domestic population ages increasingly, the incidence of benign prostatic hyperplasia (BPH) is rising year by year. It is important to note that the treatment of urinary system diseases not only concerns patient health but also requires full consideration of postoperative recovery and quality of life. A growing number of BPH patients hope to preserve erectile function while undergoing radical surgery.

Currently, the primary surgical procedures for benign prostatic hyperplasia (BPH) are transurethral resection of the prostate (TURP) and laser surgery. These approaches are associated with significant drawbacks, including thermal injury caused by device energy, a steep learning curve for surgeons, low resection efficiency, prolonged postoperative observation periods, and the risk of inducing erectile dysfunction. Consequently, clinical needs remain largely unmet.

Comparison of Surgical Therapies for BPH, Image Provided by Zhiyu Medical

Water Jet: As the name suggests, it uses water as a blade. Initially applied in industrial manufacturing, it achieves sharp dissection of materials through the impact and cutting action generated by high-pressure water jets emitted from fine nozzles. In recent years, with continuous improvements in medical-grade high-pressure water pumps and endoscopic surgical instruments, water jet technology has been gradually introduced into the field of surgery, emerging as a novel surgical instrument.

The high-pressure plunger pump, which serves as the core key technology in medical water jet pressurization systems, has been explicitly listed as one of the 35 priority areas targeted for breakthrough during the 14th Five-Year Plan period.

Based on profound clinical insights and market analysis, Zhiyu Medical has overcome multiple key technologies—including intelligent surgical planning, waterjet pressure intensification technology, precise waterjet control, and the integration of robotic instruments—through nearly four years of technological breakthroughs, independently developing metaFlow.^®️High-Energy Water Jet Autonomous Surgical Robot (Waterjet Surgical Robot). It is suitable for the surgical treatment of patients with moderate to severe benign prostatic hyperplasia (BPH), achieving safe and efficient thermal-free selective resection through precise positioning, intelligent planning, automatic execution, and real-time monitoring.

Figure: metaFlow^®️Autonomous High-Energy Water Jet Surgical Robot (Waterjet Surgical Robot)

During the procedure, the surgeon precisely delineates the target area for glandular resection by operating a waterjet surgical robot guided by real-time ultrasound imaging. The robot then accurately controls the waterjet to automatically and rapidly complete the resection throughout the entire process.

Robotic High-Pressure Water Jet Resection of the Prostate, a corresponding procedure, integrates the water jet’s inherent characteristics of being non-thermal, highly efficient, and selectively ablative. Through precise computer control and automated robotic execution, the system marks and spares the bladder neck and verumontanum during surgery, while performing fine, patient-specific contouring using proprietary parameters.

This technology not only standardizes and automates the surgical procedure for benign prostatic hyperplasia (BPH), but also reduces the resection time from approximately one hour to around five minutes. Furthermore, it avoids thermal injury, lowers the risk of surgical complications, better preserves patients’ sexual function, and enables faster postoperative recovery and discharge. The standardization and automation offered by the waterjet surgical robot also ensure consistent surgical outcomes across surgeons with varying levels of experience.

Notably, Zhiyu Medical’s intelligent planning and guidance technology for intraoperative ultrasound imaging automatically avoids critical anatomical structures, such as the verumontanum and ejaculatory ducts, during preoperative planning, thereby maximizing the preservation of patients’ ejaculatory and urinary continence functions. During surgery, this technology enables image-guided robotic control of water jets to perform standardized, quantifiable, non-thermal resection of prostate tissue, ensuring three-dimensional visualization throughout the procedure for enhanced safety and efficiency.

Figure: Schematic diagram of water jet robot operation

In December 2023, Zhiyu Medical's metaFlow^®The high-energy water jet autonomous surgical robot and the metaBlade™ disposable hydrokinetic blade have passed the review by the National Medical Products Administration (NMPA) and been approved to enter the Special Review Procedure for Innovative Medical Devices, thereby gaining access to the “green channel” for medical device approval.

In the same month, a team led by Professor Liu Ming, Director of the Urology Department at Beijing Hospital, successfully performed China’s first clinical trial surgery using the water-jet surgical robot independently developed by Zhiyu Medical.

According to Professor Liu Ming, waterjet robotic surgery for benign prostatic hyperplasia (BPH) is a novel surgical technique that utilizes high-velocity saline jets to resect prostatic tissue. The extent of glandular resection is planned by the surgeon using intraoperative ultrasound imaging, while robotic technology controls the waterjet to precisely and automatically ablate the target tissue. By combining the inherent advantages of waterjet technology—namely, its non-thermal nature, high efficiency, and selective tissue cutting—with precise computer control, this robotic approach leverages automated operation to free the surgeon’s hands, significantly reduce repetitive manual tasks, and maximize the preservation of patients’ urinary continence and sexual function [2].

Figure: Director Liu Ming and his team conducting precise surgical planning

Figure: The waterjet robot operates autonomously, freeing the surgeon's hands

Robotic high-energy water jet resection has been recommended as a surgical procedure by three major clinical guidelines: the American Urological Association (AUA), the European Association of Urology (EAU), and the Chinese Urological Doctor Association (CUDA). The development of Zhiyu Medical’s waterjet robot fills the gap in China in the field of innovative surgical techniques for benign prostatic hyperplasia (BPH).

Currently, Zhiyu Medical has established collaborative partnerships with multiple multinational medical device corporations, and is engaged in industry-academia-research-clinical collaborations with leading Chinese universities designated as “Double First-Class” institutions and numerous top-tier Grade 3A hospitals.

In terms of product pipeline layout, Zhiyu Medical is pursuing a unique matrix-based development path for multiple energy-based devices and surgical robot platforms, while simultaneously developing several globally leading innovative energy-based devices and surgical robot platforms. The research and development of the company’s second- and third-line products have successively entered the animal testing phase.

Regarding the completion of this round of financing,Shi Yilun, Founder of Zhiyu MedicalStatement: Zhiyu Medical was established in response to the booming development of China’s medical device industry and strong national support for independent R&D and original innovation. We have assembled a team of industry veterans with extensive experience in commercialization, carving out a distinctive path of development. Driven by the dual engines of innovative energy-based surgical instruments and robotic platform products, Zhiyu Medical is committed to becoming a global leader in intelligent surgery, delivering safer, more efficient, and appropriately priced treatments to patients through exceptional products, technologies, and services. Over the past three years since its inception, amidst rapid changes in healthcare policies and the broader environment, Zhiyu Medical has continued to earn high recognition from both the industrial and investment communities. The successful completion of this round of financing will propel Zhiyu Medical onto a fast track of growth. We extend our gratitude to our new shareholders for their confidence and encouragement, and to our existing shareholders for their companionship and unwavering support.

Chende CapitalStatement: The Zhiyu Medical team possesses many years of R&D management experience at leading medical enterprises both in China and abroad. Through years of dedicated research, the company has overcome multiple core technological barriers, achieving a breakthrough as the first domestic water-jet surgical robot for the treatment of benign prostatic hyperplasia (BPH) in China. Furthermore, it has built a robust pipeline of products in the fields of energy-based surgical devices and surgical robotics. We are optimistic about the Zhiyu team’s continuous innovative R&D capabilities and are committed to working alongside the company to accelerate the market entry of multiple products, thereby benefiting a broad patient population.

LegendstarCongratulations to Zhiyu Medical on successfully closing another round of financing! The AI integration and automation of high-end medical devices help standardize surgical procedures, enable more precise and personalized surgical planning for patients, and reduce surgical risks. This aligns with the trends and demands shaping the development of medical equipment in the era of artificial intelligence. The Zhiyu team has demonstrated “new-quality productive forces” in medical imaging, the principles of precise control of medical energy, and product definition for high-end medical devices. We are honored to partner with the Zhiyu team, working together to create greater healthcare value and an enhanced experience for patients.

Shunwei CapitalStatement: Shunwei Capital has long focused on innovative opportunities at the intersection of medicine and engineering, firmly believing that automation, digitalization, and intelligence will bring about significant transformations in medical devices. We hold high expectations for the team led by Yi Lun. Leveraging their extensive experience in medical device R&D, they have demonstrated a proactive and innovative spirit, overcoming multiple technical challenges in areas such as water jet technology, precise planning for medical imaging, and autonomous robotic execution. Zhiyu’s first product, the Water Jet Robot, delivers greater clinical benefits to patients, lower costs, and a shorter learning curve for physicians compared to traditional methods. The Water Jet Robot has been approved to enter the Green Channel for Innovative Medical Devices and is successfully conducting multi-center clinical trials. We are honored to have invested in the company during its angel round shortly after its founding and to have continued increasing our investment through subsequent financing rounds. We look forward to accompanying and witnessing the company realize its vision of “Precision Therapy, Accessible to All.”

Lilly Asia Ventures (LAV)Statement: LAV focuses on investing in innovative medical device companies with global innovation capabilities and market potential, and maintains a long-term bullish outlook on the development of digital and intelligent surgery. As a leading enterprise in waterjet surgical robots, Zhiyu Medical has demonstrated strong innovation breakthrough capabilities and execution power, achieving a series of important milestones—including product finalization, proof of concept, and initiation of clinical registration—within a very short period, while rapidly expanding its product pipeline with greater global innovation potential. We are pleased to have become a shareholder of Zhiyu Medical in 2022, witnessing and participating in the company’s rapid development over the past two years, and we wish the company continued positive progress!

Zhonghai InvestmentStatement: The surgical robotics industry is developing rapidly, making it a critical task for participating companies to deeply explore and pinpoint genuine clinical pain points. The Zhiyu team possesses extensive experience in medical device development and commercialization. Its leading waterjet surgical robot technology has revolutionized the treatment paradigm for indicated conditions, delivering substantial value enhancements in terms of health economics, patient clinical benefits, and treatment efficiency. Zhonghai Investment remains firmly optimistic about the development of domestically produced innovative medical devices, as well as the team’s strategic pipeline expansion and future commercial success.

Chende Capital is an investment firm focused on innovative medical technologies and cutting-edge biotechnology sectors. It is managed and operated by a professional team with extensive experience in the healthcare industry, overseeing multiple RMB and USD-denominated funds.

Chende Capital adheres to the investment philosophy of “Focus, Excellence, and Reputation.” Leveraging its deep industrial resources in the healthcare sector and years of in-depth research and cultivation, the firm promptly identifies the latest international technological trends and seizes investment opportunities driven by technological innovation. Chende Capital is committed to discovering top-tier enterprises with the potential for industry leadership. Through an interconnected, win-win investment methodology and a precise, pragmatic post-investment empowerment system, it collaborates with entrepreneurs to build an industrial ecosystem and achieve mutual growth, thereby delivering sustainable, superior returns to investors.

Legendstar Capital is one of the earliest venture capital firms to systematically layout in the healthcare sector, having designated healthcare as a key investment focus since 2010. Its strategic layout encompasses two major segments: “Biopharmaceuticals” and “Digital-Intelligent Healthcare.” The biopharmaceutical segment includes innovative drugs, gene technologies and services, diagnostics, and high-value consumables. The digital-intelligent healthcare segment leverages technologies such as artificial intelligence, big data, and robotics to drive upgrades and empowerment in drug R&D, medical devices, healthcare services, insurance payment, and health management. To date, Legendstar Capital has invested in over 100 high-quality healthcare projects, including Kintor Pharmaceutical (9939.HK), Burning Rock Biotech (NASDAQ: BNR), Keymed Biosciences (2162.HK), Axonics (NASDAQ: AXNX), PegBio, Huihe Medical, Edge Medical, Jiayin Biology, and Changmugu.

Shunwei Capital was founded in 2011 by Mr. Lei Jun and Mr. Xu Dalai. It currently manages dual-currency funds in USD and RMB with a total scale of nearly RMB 50 billion. Its limited partners primarily consist of top-tier global investment institutions, including sovereign wealth funds, family offices, funds of funds, and university endowments. Shunwei Capital focuses on sectors such as deep technology, intelligent manufacturing, Internet Plus, smart hardware, consumer goods, enterprise services, and the electric vehicle ecosystem. By investing in visionary companies from the early to growth stages, Shunwei Capital aims to make our lives better.

Lilly Asia Ventures is a leading biomedical venture capital firm established in 2008, with offices in Shanghai, Hong Kong, and Silicon Valley. Its vision is to be a trusted partner for outstanding entrepreneurs in the life sciences sector, co-building great companies and developing breakthrough products that treat diseases and improve human health.

Zhonghai Investment was established in 2014 and co-founded by former Alibaba Group executives Lu Zhong and Huang Haijun. Currently, it manages five RMB-denominated funds and has invested in nearly 90 outstanding enterprises, focusing on technology-driven industrial investment. Its investment sectors include new energy, new materials, synthetic biology, life and health, semiconductors, and aerospace. Zhonghai Investment positions itself as a “close advisor to scientific entrepreneurs,” providing portfolio companies with in-depth post-investment services such as organizational capability building and industrial resource integration, thereby achieving a perfect synergy between technology and commerce.

Yizhuang Capital (full name: Yizhuang Equity Investment Private Fund Management (Beijing) Co., Ltd.) was established in September 2020 as the sole private fund management institution under Yizhuang Holdings Group, an operator of industrial new cities. Operating on market-oriented principles, Yizhuang Capital focuses on hard-tech sectors such as medical devices and advanced manufacturing, prioritizing early- to mid-stage startups and fostering their long-term growth.

Zhiyu Medical^®(Healinno) specializes in the research, development, and manufacturing of intelligent diagnostic and therapeutic equipment, committed to providing patients with safer, more efficient, and appropriately tailored treatment solutions. Our team comprises professionals from global leaders in medical imaging equipment, robotics, and energy-based devices, boasting outstanding achievements in R&D, manufacturing, and product commercialization. With urology as its core focus, the company is pioneering the future of intelligent surgery. Adhering to independent R&D and pursuing original innovation, Healinno is simultaneously developing multiple globally leading innovative energy-based devices and surgical robot platforms, aspiring to become a global leader in intelligent surgery.

References:

1. Guidelines for the Diagnosis and Treatment of Urological and Andrological Diseases in China: 2022 Edition [M]. Science Press. 2022.

2. “A National First! Waterjet Robot Conducts Clinical Research Surgery,” MedRobot