Cornerstone Robotics Files IPO Prospectus: A Homegrown Contender Disrupts the Laparoscopic Surgery Robot Market

“From the vastness of space to the depths of the ocean, from factory workshops to rural fields, and from national strategic assets to everyday life, we are entering a vibrant new world of harmonious coexistence and shared prosperity with robots.” Thus stated Xin Guobin, Vice Minister of the Ministry of Industry and Information Technology, at the opening ceremony of the 2021 World Robot Conference.

As the crown jewel of the robotics industry, medical surgical robots have long represented a technological pinnacle that humanity has sought to conquer.

Amid the rise of the surgical robotics industry, favorable national policies have continued to exert strong momentum. From the State Council’s issuance of “Made in China 2025” in 2015, which called for prioritizing the development of high-performance diagnostic and therapeutic equipment such as medical robots, to Shanghai’s inclusion of “AI-assisted therapeutic technologies,” encompassing robotic surgery procedures, in its basic medical insurance coverage in April 2021; and Beijing’s subsequent addition of “robot-assisted orthopedic surgery” as an ancillary procedure to its medical insurance reimbursement list in October of the same year; meanwhile, ten ministries and commissions, including the Ministry of Industry and Information Technology, have proposed tackling key challenges in intelligent surgical robots, accelerating breakthroughs in critical technologies such as image registration, high-precision positioning, intelligent human–machine interaction, and multi-degree-of-freedom precise control. Policies have continuously increased support for this sector to help expand industry demand.

According to Frost & Sullivan data, in 2020, the global surgical robot market size exceeded $8.3 billion. The U.S. surgical robot market was valued at $4.6 billion, accounting for 55.1% of the global market. The EU market size was $1.8 billion, representing 21.4% of the global market. China, with its large population, substantial patient base, and high volume of surgical procedures, had a surgical robot market size of only $400 million, accounting for 5.1% of the global market—significantly lower than that of the United States and the European Union. Compared to the 13.3% market penetration rate of laparoscopic surgical robots in the United States in 2020, China’s market penetration rate for laparoscopic surgical robots was merely 0.51%.

In a vast and promising market, a Shenzhen-based enterprise established less than three years ago has secured nearly RMB 1 billion in financing for its laparoscopic surgical robot, which is still in the clinical trial phase. Notably, its Series A investors collectively increased their stakes during the Series B round. Recently, as a representative of outstanding Hong Kong enterprises, the company participated in exhibitions commemorating the 25th anniversary of Hong Kong’s return to China and was featured on CCTV.

Image source: CCTV News

Recently, VCBeat conducted an exclusive interview with this rather legendary company—Cornerstone Robotics Limited(hereinafter referred to as“Cornerstone Robotics”）。

Cornerstone Robotics was established in September 2019. Its founding team comprises world-class experts in surgical robotics with decades of deep industry experience. The company is committed to becoming a highly competitive player on the international stage.Chinese Innovative Surgical Robotics Enterprise. The company has currently completedSoft Tissue Surgical RobotandOther Major Specialty Surgical Robotsmulti-pipeline layout.

Since its inception, the company has rapidly broken through international technological barriers, achieving breakthroughs in the development of high-quality surgical robot products, and has gained high recognition from numerous top experts both domestically and internationally. Currently, the company has completed its global strategic layout in Hong Kong (China), Shenzhen, Beijing, and the United States, and has assembled a professional team of hundreds of members.

Lilly Asia Ventures, a Series B investor, commented on Cornerstone Robotics: “Intelligent surgical technology based on surgical robot platforms represents a major trend in the field of innovative medical devices. There is substantial unmet clinical demand both domestically and internationally, coupled with significant technical barriers and ample room for innovation. We highly recognize the rapid development achieved by the Cornerstone Robotics team within just two years, as well as the entrepreneurial spirit they have demonstrated. As a company possessing both strong product capabilities and execution excellence, we believe that Cornerstone Robotics will undoubtedly provide high-quality intelligent surgical products to clinical experts in China and around the world, thereby delivering greater clinical benefits to patients.”

According to public information, as of May 2020, Cornerstone Robotics had securedTwo rounds of financing, with cumulative funding nearing RMB 1 billion. November 2020, Qiming Venture Partners, QingSong Capital, Gaorong Capital, and Xianfeng K2VCInvested in the company's Series A round. One year later, the company completed another financing round led byLilly Asia VenturesandMeituan LongzhuLead InvestorSeries B: CNY 500 millionFinancing; new institutional investors also includeNew World Development Group.

Ou Guowei, Founder of Cornerstone Robotics

Ou Guowei, Founder of Cornerstone Robotics, earned his bachelor’s and master’s degrees from The Chinese University of Hong Kong and his Ph.D. from the Massachusetts Institute of Technology. With decades of in-depth industry experience, he previously worked at a leading global surgical robotics company, where he participated in and led the research and development of multiple flagship products, including the da Vinci Surgical System. Several of these products have received FDA approval for market launch, been installed in hospitals worldwide, and gained extensive clinical recognition.

In 2016, Au Kwok Wai returned to his alma mater, The Chinese University of Hong Kong, to join the faculty as a Professor in the Department of Mechanical and Automation Engineering at the Faculty of Engineering, while also serving as Co-Director of the Center for Innovative Medical Robotics Technology. With extensive expertise in robot development and commercialization, and an outstanding track record in scientific research, he is a rare entrepreneur in the industry who integrates product development, translation of clinical needs, cutting-edge technological research, and industrialization experience.

In 2019, Ou Guowei founded Cornerstone Robotics in China's Greater Bay Area, focusing on the innovative research and development of surgical robots. The company's core R&D team consists of graduates from renowned universities both domestically and internationallyEngineers, Physicians, Specialized Professionals, and Surgical Robotics ExpertsComposition. The cross-disciplinary talent team has not only built a comprehensive and robust core technological barrier for Cornerstone Robotics, but its profound accumulation of industry resources and insights has also brought a global perspective and leading medical solutions.

A top-tier team has provided Cornerstone Robotics with a comprehensive, end-to-end solution for surgical robots, covering every detail from the granular to the holistic.

Cornerstone Robotics has completed the development and animal trials of its first-generation laparoscopic surgical robot, and will next enter the clinical trial phase.

When asked about the differences between Cornerstone Robotics and other robotic products on the market, Ou Guowei highlighted two points: “In our product design, we integrate real-world clinical scenarios and fully consider the needs of all parties involved in surgical procedures. First, the master console of the Cornerstone Robotics system is highly sensitive and lightweight, with negligible friction during operation. Meanwhile, our power modules, software architecture, and control systems are all independently developed, resulting in superior system integration, higher precision, lower latency, and more precise操控.”Enhancing the stability and safety of surgical procedures for physicians.Secondly,Our robots are easy to install., prior to surgery, a single nurse can rapidly set up the system and complete port placement. During the procedure, instrument exchange and positional adjustments can also be performed swiftly.”

According to Ou Guowei, Cornerstone Robotics primarily boasts four major advantages:

Fully independently developed, with mastery of core technologies.Currently, Cornerstone Robotics'Core components are independently developed by the team and manufactured domestically., completed the establishment of the underlying technology platform and industrialization platform, and overcame "chokehold" challenges. Furthermore, the team has fully mastered and implementedMechanical Architecture, Electrical Architecture, Software Architecture, Complex AlgorithmsandVisual Image Controlindependent research and development of core technologies.

Establish a Global Research Center.Currently, Cornerstone Robotics is anchored in the domestic market while comprehensively implementing its internationalization strategy. The company has established a global R&D footprint with centers in Shenzhen (China), Hong Kong (China), and the United States. With its team and distribution channels extending worldwide, Cornerstone Robotics is actively pursuing NMPA, FDA, and CE approvals for its products, striving to build an innovative surgical robotics platform with global competitiveness.

Coupling Global Talent, Building an International Team.A mature surgical robot is a product that integrates multiple disciplines, including medicine, mechanical engineering, mechanics, electrical engineering, control engineering, software engineering, and robotics, placing exceptionally high demands on its underlying design team. A talent pool spanning diverse regions, fields, and cultures not only enables Cornerstone Robotics to compete with industry giants from a global perspective but also allows top experts from various sectors to integrate their rich intellectual assets—such as academic knowledge, industrial experience, industry insights, and clinical expertise—into Cornerstone Robotics’ surgical robots, thereby delivering precise, safe, and effective clinical solutions for clinicians and patients.

Meanwhile, through collaborations with leading hospitals and experts both in China and abroad, Cornerstone Robotics not only engages with cutting-edge international academic topics but also gains deep insights into a wide range of real, unmet clinical and surgical needs, thereby delivering safe and effective products and solutions.

Leveraging China’s stable supply chain to deliver cost-effective solutions.In 2021, Cornerstone Robotics established a mass-production facility in Longhua District, Shenzhen, maximizing cost reduction while ensuring high-quality products to deliver cost-effective products and services.

“The long-term market value of innovative surgical robots depends on their ability to effectively meet clinical needs, with product safety and efficacy being the core,” Ou Guowei told VCBeat. He noted that current surgical robots on the market still exhibit characteristics of luxury goods for hospitals due to high R&D and promotion costs, leading to low penetration rates, underutilization, and an inability to effectively address actual clinical demands. Once clinical needs are properly addressed and economic efficiency constraints are resolved, the surgical robotics industry is poised for explosive growth.

Ou Guowei stated that Cornerstone Robotics will continue to delve deeply into clinical pain points, consistently focus on and meet the core clinical demands for safe, effective, and reliable surgical robots, and actively advance the regulatory approval and market launch of its high-quality products in China and globally to serve patients and healthcare providers worldwide. Currently, Cornerstone Robotics seeks to collaborate with more hospitals and physicians to further understand and address diverse clinical needs, aiming to build world-class innovative surgical robots.