Wangli Tech Secures Over RMB 100 Million in Funding to Advance Digital Therapeutics for Mental Health

VCBeat has learned that Wangli Technology, a leading domestic digital therapeutics technology platform for mental health, recently announced the completion of a financing round worth hundreds of millions of yuan. This round of financing was led byMorningside Venture CapitalLead Investor,Zhongxin CapitalCo-investment, Existing ShareholdersLong Hill Capital, BioTrack CapitalContinuous infusion,Taihe CapitalServed as the exclusive financial advisor for this financing round.

Wangli Technology is one of the earliest R&D-focused enterprises in China to specialize in the field of mental health, with in-depth research and development of a pipeline of digital therapeutics products for psychiatric and psychological conditions. It has now evolved into a leading digital therapeutics technology platform in China.

As winter sets in, capital and markets are returning to rationality. Investors are increasingly focusing on entrepreneurs’ endurance for the long haul, exercising greater prudence in investment decisions, delving deeply into hard-tech projects, and concentrating capital on identifying true high-potential ventures and leading startups poised for sustainable, long-term growth. The recognition Wangli Technology has received from both new and existing investors underscores its solid foundations in trend forecasting, core technologies, business model, and organizational talent.

Mental and psychological issues are becoming increasingly severe, affecting a vast population. However, long-standing challenges in China’s mental health sector—such as limited supply of professional resources, uneven regional development, lack of objective diagnostic criteria, and poor accessibility to effective treatments—are becoming ever more prominent.

In the face of mental health conditions with limited responsiveness to pharmacotherapy, digital therapeutics have garnered increasing attention in recent years. Multiple clinical studies have demonstrated that digital therapeutics for psychiatric and psychological disorders can directly ameliorate core symptoms, be used as a standalone intervention or as a robust adjunct to conventional treatments, and enable self-administered therapy anytime and anywhere.

Furthermore, digital therapeutics for mental disorders can serve tens of millions of in-hospital patients as well as a broader population of sub-healthy individuals outside hospital settings, boasting broad application prospects and market potential reaching the hundred-billion-yuan level.

Wangli Technology has established a scalable digital therapeutics technology platform for disease assessment and intervention. Based on this platform, the company has developed assessment and intervention products for a range of mental health conditions, including depression, insomnia, cognitive impairment, PTSD, and addiction. It has achieved industry-leading clinical evidence in both assessment accuracy and treatment efficacy across these indications.

More critically, over the nearly six years since its establishment, Wangli Technology has accumulated electrophysiological, behavioral, and medical diagnostic data from tens of thousands of precisely characterized patients. This extensive, proprietary, high-standard database has laid a solid foundation for developing adaptive algorithms, thereby facilitating personalized treatment and delivering improved therapeutic outcomes.Once product efficacy is validated, the user base will continue to expand. As users engage with the product over time, data accumulation increases and model accuracy improves, thereby enhancing user adoption and adherence, creating a virtuous cycle.Improving mental health is a “long-term battle” that urgently requires such a virtuous cycle.

To date, Wangli Technology has published more than ten research papers in top-tier international journals and conferences on psychiatry and psychology. Its sleep-related products have been selected for the National Key R&D Program of the 14th Five-Year Plan, and its products are indicated for cognitive disorders.Has obtained the first digital therapeutics registration certificate in China's mental health and psychology field,Clinical progress of other pipeline products is also advancing rapidly. In terms of commercialization, Wangli Technology has provided hospitals, community patients with various mental disorders such as addiction, depression, and cognitive impairment, as well as clients in industries including firefighting and education, with end-to-end solutions ranging from large-scale psychological screening to objective assessment and enhancement training.

As an emerging industry, digital therapeutics cannot avoid questions about industry barriers and prospects, with skeptics, onlookers, and staunch supporters alike. Li Dai, Founder and CEO of Wangli Technology, has provided his own answer:The core barrier of digital therapeutics products is effectiveness. "Accurate assessment" and "good results" are the most concerning issues for customers. Only products that have been validated for effectiveness can gain recognition from industry experts, users, and customers, thereby generating lasting and effective competitiveness.

The product's efficacy stems from several key factors,The first is to accumulate clinical-grade data,If the initial data and labels are not sufficiently accurate, the algorithm’s performance and validity will inevitably be compromised.Second, clinical-grade trial validation is required.Ensure that the product can truly withstand scrutiny.Third, it requires the support of algorithms.Without the support of algorithms, product barriers would only be temporary.

Regarding regulatory approval and commercial value, Li Dai believes that as long as the aforementioned three criteria are met, approval and clinical value will follow naturally. This is particularly true for Class III medical device registration certificates, which carry the greatest weight. The high barriers to entry stem from the stringent requirements for efficacy and accuracy, as well as the rigorous demands for clinical evidence and sample size. Consequently, these devices offer the highest commercial and social value, reflected in physicians’ recognition of their clinical utility, improvements in patient outcomes, and corresponding willingness to pay. These aspects precisely constitute the competitive advantages of Wangli Technology.

In the future, Wangli Technology will continue to deepen its expertise and contribute its strength to various mental health scenarios.

For this financing round,Dr. Shen Rong, Morningside Venture Capital“The fields of psychiatry, psychology, and neurology in China face substantial unmet needs, characterized by high prevalence rates, limited traditional treatment options, and a clear shortage of high-quality physicians and psychotherapists. Digital therapeutics have been proven effective through years of scientific research and clinical trials both domestically and internationally. Given their added advantages of convenience, accessibility, and personalized adaptation, they are poised to become one of the premium solutions for mental and psychological disorders. Drawing on MorningSide’s extensive experience investing in multiple digital therapeutics companies in these related fields overseas, we believe that Wangli Technology has achieved remarkable results in its overall pipeline layout, product design, hospital and expert resource networks, and commercial implementation. The company’s team demonstrates strong entrepreneurial spirit and execution capabilities. We look forward to deepening our collaboration with Wangli Technology in the future, leveraging this platform to introduce globally leading treatment modalities to China, thereby benefiting more patients.”

Zhongxin Capital stated: "The integration of digitalization across various industries is a significant and clear trend, with digital therapeutics (DTx) being a crucial component of healthcare digitalization. We are optimistic about DTx solutions that integrate diagnostic, management, and therapeutic functions. In the field of mental health disorders, where Wangli Technology operates, there is a large patient population, suboptimal efficacy of pharmacological treatments, and substantial unmet clinical needs. The company’s depression treatment product is at a leading stage in obtaining China’s Class III medical device certification, and it has accumulated extensive medical-grade data, demonstrating the therapeutic efficacy inherent in 'digital therapeutics.' The company’s team is experienced and highly proactive. We are pleased to participate in this investment and are bullish on Wangli’s digital therapeutic products as a form of 'new medicine' that will benefit patients and improve their quality of life."

Jiang Xiaodong, Managing Partner of Long Hill CapitalIt stated: “Wangli Technology is one of the earliest pioneers of digital therapeutics in China. Under the leadership of its founder, Mr. Li, it has become one of the few domestic technology platforms for digital mental health products that are driven by R&D and real-world data, committed to developing solutions that truly meet clinical needs while embodying a strong foundation in rigorous medical science. As Wangli’s first institutional investor, Long Hill Capital will continue to support the company’s development as always.”。”

Ma Jinbo, Vice President of Investment at BioTrack Capitalstated: “The more things change, the more we must adhere to long-termism. Wangli Technology is one of the few serious medical practitioners we have seen in this field that firmly relies on data and outcomes to demonstrate its value, holding a significant leading edge in scientific research and regulatory registration. In this year’s market environment, we at BioTrack Capital, as an existing shareholder, are delighted to see that Wangli Technology has achieved phased progress in product development, talent acquisition, and commercialization, further validating the team’s competitiveness and execution capabilities. BioTrack Capital remains committed to supporting the most outstanding entrepreneurs in healthcare and life sciences. We look forward to Wangli launching more blockbuster products to benefit the public and create value.””

Sun Si, Director at Taihe Capitalstated: “The core value of digital therapeutics lies in their clinical efficacy, which is the prerequisite for any commercialization. Wangli Technology holds a significant first-mover advantage in this regard and has developed a highly versatile technology platform along with a comprehensive product portfolio. As one of the earliest companies in the industry to develop digital therapeutics, its team has accumulated valuable medical data, interdisciplinary R&D experience, and expert resources. We are honored to maintain a long-term partnership with the company and look forward to its leadership in the mental health treatment market, delivering revolutionary products to patients.”

Morningside Venture Capital was founded by the Chen family of Hong Kong in Boston, USA, in 1986, and formally expanded its venture capital operations into China in 1993. Since its inception, Morningside Venture Capital has consistently monitored and prioritized cutting-edge developments in the global biopharmaceutical and healthcare sectors, with portfolio companies operating and invested in across North America, Europe, and Asia. The firm brings together a team of investors who possess both deep industry technical expertise and extensive experience in venture capital and management, actively pursuing investments in early-stage and growth-stage enterprises featuring innovative technologies and disruptive medical technologies and healthcare service models. To date, Morningside Venture Capital has invested in more than 100 healthcare and pharmaceutical projects in China.

CSSD Capital is a professional fund manager under CSSD Group. Leveraging its Park Innovation and Park Development series of funds, it is rooted in the Suzhou Industrial Park, extends its reach to various cooperation zones within the CSSD network, and radiates to the China-Singapore International Business Cooperation Center (offshore). Focusing on regional leading and advantageous industries, it actively engages in venture capital activities, with a distinctive emphasis on empowering the industrialization and internationalization of “Specialized, Refined, Differential, and Innovative” (SRDI) enterprises. Established in August 1994 through collaboration between the Chinese and Singaporean governments, CSSD Group, as the main entity for park development and a vehicle for China-Singapore cooperation, has made significant contributions to the development and construction of the Suzhou Industrial Park.

CSSD Group takes “building China’s dreams and developing innovative industrial parks” as its mission, adhering to an industry-centric and people-oriented approach. It has established park development and operation as its core business segment, supported by two wings—industrial investment and green public utilities. Through segment synergy and resource aggregation, CSSD Group achieves high-level integration of industry and urban development characterized by “thriving industries, comprehensive supporting facilities, green and low-carbon practices, and open innovation,” thereby contributing to national technological innovation and industrial upgrading.

Long Hill Capital is a new generation of theme-driven venture capital funds. In the fields of big health and aging, Long Hill Capital is committed to investing in technology-driven business model innovations, making longevity a gift of life to everyone in China’s rapidly aging society. Long Hill Capital has offices in Shanghai and Beijing, with total assets under management reaching RMB 6 billion. Its limited partners include top-tier institutional investors such as endowments from globally renowned universities and hospitals, foundations, pension funds, and leading funds of funds. Long Hill Capital is dedicated to continuously creating value for the growth and development of companies in emerging sectors.

BioTrack Capital, established in 2017, is a specialized investment firm dedicated to investing in and incubating outstanding healthcare startups in the Chinese market. We are not just investors; we are long-term partners to entrepreneurs. We provide sustained support to the most distinguished healthcare founders, cultivating the next generation of leading enterprises in China’s healthcare industry.