Sim Medical Completes Tens of Millions RMB Series A Financing to Advance Intraoperative Imaging Solutions

VCBeat has learned that Jiangsu Simm High-Tech Co., Ltd. (hereinafter referred to as “Simm Medical”), a company focused on the research and development of intraoperative imaging technologies, recently completed its Series A financing round amounting to tens of millions of RMB. The round was led by a subsidiary fund under Nanjing Dynamic Balance Investment Management Co., Ltd.This round of financing aims to further increase R&D investment, advance the development and registration of multiple products from Simm Medical, and accelerate the launch of its comprehensive intraoperative imaging solutions. Meanwhile, Simm Medical stated that the funds will also be used to expand production capacity and further shorten product delivery times.

Simm Medical is a provider of intraoperative imaging solutions dedicated to advancing minimally invasive orthopedic surgery. Previously,It secured tens of millions in Pre-A round financing in 2019.What has earned Simm Medical renewed favor from investors, securing another round of tens-of-millions in financing? We may explore this question from several dimensions, including the market landscape, competitive sector, and the company’s intrinsic strengths.

According to relevant research reports,China’s orthopedic surgery volume continues to grow rapidly at an annual rate of 10–15%.Behind the growth in orthopedic surgery volume, there are two main driving factors:

First, the rapid development of the sports industry has led to a significant increase in the number of people participating in sports; however, with the growing popularity of physical activity, there is an emerging rise in the number of individuals suffering from sports-related injuries.The increase in the volume of certain orthopedic surgeries, such as anterior cruciate ligament reconstruction, joint replacement, meniscus repair, ligament repair, cartilage repair, and fracture surgery, is to some extent associated with patients' improper exercise behaviors.

Second, China is gradually entering an aging society, and the increase in the elderly population has led to a growth in the volume of orthopedic surgeries.Data from the seventh national population census shows that China's population aged 60 and above is 264.02 million, accounting for 18.70% of the total population (1.41178 billion). Compared with 2010, the proportion of people aged 60 and above has increased by 5.44 percentage points. The aging of the population has further deepened, and age-related skeletal system aging has increased the risk of nerve damage and degenerative lesions. Problems with the bone, joint, and muscle systems are among the most common symptomatic diseases in middle-aged and elderly people.

With advances in medical technology, minimally invasive orthopedic surgery is increasingly accepted by patients and physicians due to its superior therapeutic efficacy, minimal incisions, and rapid recovery."To Better Perform Minimally Invasive Surgery", it is necessary to maintain a clearer surgical field during the operation and perform the procedure with greater precision, thereby moving away from the traditional reliance on surgeons’ experience and tactile feedback. And thisThis has driven demand for surgical imaging equipment and other auxiliary surgical devices.

For example, in the realm of intraoperative imaging equipment, traditional fluoroscopy systems mostly employ C-arm unilateral projection, enabling only unilateral fluoroscopic imaging. They fail to achieve simultaneous anteroposterior and lateral views or assist in puncture localization and orientation, necessitating frequent adjustments of angle, positioning, exposure, and sterilization. Consequently, equipment operation accounts for more than 60% of the total surgical time, and the prolonged duration poses a potentially higher risk of infection. How can we address the issues associated with current medical devices, including intraoperative imaging equipment? Innovation in these devices is undoubtedly a key solution.Simm Medical is precisely such a company, providing intraoperative imaging solutions.

The decision to enter the market for comprehensive intraoperative imaging solutions was driven not only by the substantial market demand for such technologies but also by Yang Hua, Founder and CEO of Simm Medical, who recognized that this sector in China remains largely untapped:

Currently, the domestic surgical imaging market is predominantly dominated by overseas companies. In terms of providing comprehensive solutions that encompass surgical imaging, surgical navigation, and surgical robotics, international giants have already established their competitive advantages through in-house research and development as well as mergers and acquisitions, thereby creating integrated minimally invasive surgical imaging solutions. However, no Chinese enterprise has yet emerged capable of offering such comprehensive solutions.

Simm Medical, recognizing its vast development prospects,Since 2017, it has focused on providing comprehensive minimally invasive surgical imaging solutions and has been continuously building up its technological and talent reserves.Leveraging its own resource reserves, Simm Medical has developed and launched the D-Vision 9000 (G-arm) mobile X-ray machine to help hospitals improve surgical efficiency and quality.

Simm Medical's G-arm mobile X-ray machine features bilateral imaging capability, significantly reducing the time physicians spend adjusting the equipment.According to data provided by Shijingshan Hospital, the features of the G-arm can help physicians reduce surgical time by approximately 30–50%, significantly accelerating the surgical procedure, thereby enhancing surgical safety and postoperative recovery rates for the hospital.

In addition to developing G-arm fluoroscopy equipment to address the pain points associated with C-arm fluoroscopy systems, Simm Medical has also achieved breakthroughs in hardware.It is reported that the D-Vision 9000 is its first product equipped with digital dynamic flat-panel technology.This technology significantly reduces the size and weight of the equipment, making it more convenient for departmental use. Furthermore, in terms of imaging, the digital dynamic flat panel detector features high resolution, high grayscale depth, a large field of view, and distortion-free performance, resulting in clearer images with richer details. The product’s built-in intelligent algorithms can also enhance contrast between different tissues and eliminate metal and respiratory artifacts, helping physicians better assess patient conditions and optimize surgical procedures.

Currently, top-tier orthopedic hospitals in China, including the Chinese PLA General Hospital, the Chongli Campus of Peking University Third Hospital, the Third Hospital of Hebei Medical University, and Xinqiao Hospital, are all using products from Simm Medical.In 2021, Simm Medical won the bid for the General Logistics Department’s surgical imaging project, supplying hospitals with up to 16 G-arm systems. It is reported that Simm Medical’s G-arm products currently account for approximately 60% of domestic sales volume in China, maintaining a leading position in the industry.

Investors’ favor is, to some extent, attributable to their recognition of the intraoperative imaging products developed by Simm Medical.In Yang Hua’s view, the products developed by Simm Medical have been able to gain a firm foothold in the market because they already possess certain advantages. For example:

① The product can better address clinical pain points and meet the needs of clinical surgery.
② The product’s performance is comparable to that of imported brands, and in certain parameters, it even surpasses them.

③ Product quality is strictly guaranteed, eliminating concerns about risks arising from equipment quality issues.

Yang Hua also mentioned, “Only by advancing in tandem across product R&D, production, and sales can a company achieve substantial growth, withstand market tests, gain user recognition, and ultimately attract capital investment.”

In fact, behind product research and development and production, there is also an indispensable excellent team.

It is reported that,Currently, the Simm Medical team comprises 70 members, with approximately one-third dedicated to R&D. Many team members have prior work experience at multinational corporations such as GE, Philips, and Carestream.“Standing on the shoulders of technological giants and maintaining an international perspective ensure that our technology remains at the forefront,” Yang Hua added.

Meanwhile, several members of Simm Medical’s team have prior entrepreneurial experience. This endows Simm Medical with the flexibility characteristic of startup teams, while maintaining professionalism. Not following trends or blindly conforming is the second hallmark of this team. And this has also enabledSimm Healthcare has focused on developing products tailored to Chinese customers and aligned with the clinical needs of Chinese physicians.In terms of market expansion, Simm Medical has maintained a prudent and restrained approach—starting with niche segments that ensure corporate survival before expanding into other specialized areas. Throughout this process, the company is committed to addressing the pain points of Chinese clinicians, from the user interface to the mode of operation.

It is reported that Jiangsu Simm High-Tech Co., Ltd. will have two medical devices approved for market launch this year. The company plans to maintain a pace of launching one to two new products annually in the future.Simm Medical’s ultimate goal is to create a comprehensive minimally invasive surgical solution for intraoperative procedures, strategically focusing on surgical imaging, surgical navigation, and surgical robotics. By developing intelligent surgical solutions, the company aims to further reduce surgical complexity and improve surgical quality.

Furthermore, Simm Medical plans to collaborate with multiple domestic orthopedic equipment manufacturers to jointly build an application platform for orthopedic surgical devices. This initiative aims to enhance the interoperability and compatibility of equipment from different manufacturers, reduce the complexity of operating multiple devices in hospitals, and contribute to improving the standard of medical care in China.

Regarding the future development of the industry, the Founder and CEO of Jiangsu Simm High-Tech Co., Ltd. stated that capital investors and entrepreneurs should adhere to a long-term development philosophy and make adequate preparations. By focusing on clinical needs while diligently advancing technological research, developing products, and expanding market presence, they can introduce innovative equipment to the market, ultimately meeting physicians’ clinical requirements and further benefiting a broad patient population.

Dynamic Balance Capital is a core enterprise of the Nanjing Jiangning Science and Technology Innovation Investment Group. It currently manages multiple government fund-of-funds, the Chinese Academy of Sciences Achievement Transformation Fund, venture capital funds, and industrial funds, covering all stages from angel investing to venture capital (VC) and private equity (PE). As a well-known early-stage professional investment institution in the industry, Dynamic Balance Capital focuses on sectors such as TMT, biomedicine, high-end equipment, energy conservation and environmental protection, and new materials. The firm provides services including project investment, venture capital, project financing, investment management, strategic planning, asset restructuring, IPO facilitation, private placement financing, and related consulting. It also acts as an agent for venture capital activities on behalf of other venture capital firms, institutions, or individuals, aiming to accelerate the development of startup projects through capital and value-added services.