Xinjing Technology Secures Over RMB 100 Million in Series A Funding to Accelerate Commercialization of Multiple Digital Therapeutics (DTx) Products
VCBeat has learned that Hangzhou Xinjing Science and Technology Co., Ltd. (hereinafter referred to as “Xinjing Tech”) recently announced the completion of its Series A+ financing round, amounting to tens of millions of RMB. The round was led by Hangzhou Lingxin, with follow-on investment from existing shareholder Mifang Health Fund. This brings Xinjing Tech’s cumulative financing from its Series A round to RMB 100 million. Following this financing, Xinjing Tech will accelerate the commercialization of multiple digital therapeutic products and continue to strengthen its core upstream technological capabilities. Kaicheng Capital served as the financial advisor.
Hangzhou Xinjing Science and Technology Co., Ltd. was established in 2016, a year when internet healthcare was flourishing. During this period, both policy support and capital investment fueled the rapid growth of the internet healthcare industry. Unlike typical internet healthcare companies that focus on online consultations and health management, Xinjing Technology has concentrated on “unmet clinical needs” since its inception—a strategic direction rooted in founder Cao Qun’s prior experience as a thoracic surgeon and his entrepreneurial ventures in the medical device industry.
The founding team of Hangzhou Xinjing Science and Technology Co., Ltd. possesses extensive experience in the pharmaceutical sector and strong management expertise, enabling the company to forge ahead with determination in a highly competitive industry.
In the early stages of its founding, the Xinjing Technology team reviewed extensive literature and examined both domestic and international markets when selecting their initial entry point. The increasing maturity of modern digital technologies has introduced a series of innovative intervention methods for diseases that are untreatable or have poor prognoses with conventional therapies—specifically, software application-driven interventions that can effectively improve the accessibility and adherence of patients in chronic disease management.
“After a series of evaluations and assessments, we believe that digital therapeutics hold the potential to become ‘Best-in-class’ across all stages of clinical diagnosis, treatment, and rehabilitation for psychiatric and psychological disorders,” stated Hangzhou Xinjing Science and Technology Co., Ltd. The company noted that while pharmacotherapy is highly effective for attention-deficit/hyperactivity disorder (ADHD) in children, current medications often cause side effects, which are a major concern for parents. Therefore, we aim to leverage software as a novel delivery platform for therapeutic interventions, minimizing adverse effects on the body and providing safe, feasible treatment solutions from the perspective of supporting children’s growth and development.
Xinjing Technology focuses on the field of mental and psychological disorders, with corresponding product pipelines established for conditions such as depression, anxiety, sleep disorders, addiction, and child growth and development.
After selecting its strategic focus, the team at Xinjing Technology advanced its project with steady and deliberate steps. From 2016 to 2021, digital therapeutics remained a niche segment within the pharmaceutical industry—unlike the antibody drug sector, which frequently produced “blockbuster” drugs, no digital therapeutic product had yet emerged as a “blockbuster.”
As the number of FDA-approved digital therapeutics continues to rise, an increasing number of emerging companies abroad have secured investment from prominent venture capital firms. Coupled with the continuous improvement of domestic policies, China’s digital therapeutics sector experienced its own “minor boom” in 2021. Leveraging a professional team with strong medical backgrounds, a rigorous approach to evidence-based medicine, and steady project advancement, Hangzhou Xinjing Science and Technology Co., Ltd. has secured multiple rounds of financing totaling hundreds of millions of yuan, positioning itself among the top tier of digital therapeutics companies in China.
Many investors still struggle to understand the concept of “software as therapy.” Digital therapeutics are fundamentally similar to traditional small-molecule drugs, biologics, and cell therapies: they all require rigorous clinical validation, regulatory approval, and large-scale real-world data to identify the most appropriate therapeutic indications. While strategically developing downstream application scenarios, Hangzhou Xinjing Science and Technology Co., Ltd. has also been collaborating with prestigious institutions and hospitals—including the National Clinical Research Center for Mental Disorders at Xiangya Second Hospital, the Clinical Center of Capital Medical University, Zhejiang University, and Shanghai Jiao Tong University—to conduct foundational research in brain science.
With the approval of multiple digital therapeutics, commercialization has become a major challenge for the first batch of domestic digital therapeutics companies. Hangzhou Xinjing Science and Technology Co., Ltd.’s portfolio of products is also stepping into this phase to face this “major test.” As early as during the peak periods of the outbreaks in Wuhan and Shanghai, Xinjing’s digital therapeutic product for sleep disorders was deployed as a critical anti-epidemic resource to help alleviate stress and insomnia among healthcare workers, delivering tangible benefits to both medical staff and patients.
Xinjing Technology has established a presence in nearly one hundred hospitals and generated tens of millions in revenue even during the pandemic. Cao Qun, founder of Xinjing Technology, stated, “Xinjing Technology has developed a more diversified sales model. We have already built direct sales teams in over ten cities across China and established strategic partnerships with various channels, laying the infrastructure for explosive growth. On the patient side, we have launched specialized internet hospitals, further completing the ‘doctor-patient-Xinjing’ closed loop.”
Ye Huahua, a multi-round investor in Xinjing Technology and a renowned angel investor in the pharmaceutical sector, stated: “Xinjing Technology boasts a core team with complementary expertise, possessing the capabilities to conduct fundamental scientific research, develop software and hardware, and provide academic promotion and sales services. This has established a strong organizational moat for Xinjing Technology.”
Zhou Yujian, Managing Partner at Mifang Health Fund, stated: “Xinjing Technology is among the earliest companies in China to dedicate itself to digital therapeutics and has consistently been a leader in VR-based digital therapeutic solutions for mental health in the country. It has promoted the recognition of VR technology applications in the mental health field by the National Medical Products Administration (NMPA), leading to the establishment of a new regulatory classification. Its offerings cover core areas of mental and psychological disorders, such as insomnia, anxiety, and attention-deficit/hyperactivity disorder (ADHD) in children, representing an extremely broad market. In terms of resources, Xinjing Technology has attracted investment and business collaborations from leading enterprises across multiple sectors of the pharmaceutical industry, laying a solid strategic foundation for each step of its product commercialization.”
Dr. Zou Guowen, Founding Partner of Kaicheng Capital, stated: “We sincerely appreciate the close collaboration of the Xinjing team and the strong support from both new and existing shareholders. It is our honor to have facilitated Xinjing’s completion of this financing round. Xinjing not only grounds its product design in clinical practice and leverages top-tier expert resources, but has also achieved remarkable success in commercial implementation. We look forward to Xinjing’s products serving as a valuable complement to psychiatric and psychological treatment modalities, addressing more unmet clinical needs in the future, and delivering greater value through enhanced products and services for clinicians and patients alike.”