Shengshi Technology Secures Nearly RMB 100 Million in Pre-A Funding, Advancing Clinical Translation of Biomechanical Fluid Dynamics Technologies

VCBeat learned at the earliest opportunity that on January 5, 2022,Hangzhou Shengshi Technology Co., Ltd. (“Shengshi Technology”) announced the completion of its Pre-A financing round, raising nearly RMB 100 million. The round was led by Genesis Capital, with participation from Bangming Capital and the Zhejiang University Institute of Innovation (the primary platform for the investment and commercialization of scientific and technological achievements at Zhejiang University).The proceeds from this financing round will be primarily used for the regulatory registration of the company’s diagnostic and therapeutic software in the cardiovascular field, as well as for the research and development and clinical regulatory registration of mechanical circulatory support devices. Changhai Capital served as the exclusive financial advisor for this financing round.

SHENGSHI Technology, established in 2017, is dedicated to providing non-invasive, precise cardiovascular diagnostic and therapeutic support products, as well as mechanical circulatory support systems for acute and critical care, to physicians and patients. This is achieved through globally leading hemodynamic detection, computational simulation, and in vitro experimental platforms and technologies. The company’s core technical team has over 20 years of experience in fluid dynamics research, pioneering the integration of computational fluid dynamics (CFD) simulation and experimental techniques from the aerospace industry with clinical medicine. Its core technologies have been honored with the Second Prize of the National Technological Invention Award. Currently, SHENGSHI Technology has developed and built a portfolio of multiple software and hardware products that are globally leading or even first-of-their-kind, establishing an initial industry brand and influence. This round of financing will further solidify the foundation for expanding and strengthening SHENGSHI Technology.

SHENGSHI Science and Technology is currently primarily engaged in the cardiovascular field. As is well known, with China’s economic development and population aging, the prevalence and incidence of cardiovascular diseases have been increasing year by year. Currently, there are over 330 million patients with cardiovascular diseases in China, including 11 million with coronary heart disease and 13.7 million with heart failure. Among these patients, cardiac function gradually deteriorates as the disease progresses, and more than 1 million patients annually require mechanical circulatory support due to various etiologies or triggers. Furthermore, the rapid advancement of medical imaging diagnostic technologies, when integrated with biofluid mechanics technology, not only drives transformation and innovation in early screening, early diagnosis, assisted diagnosis, and treatment efficacy monitoring within cardiology, but also promotes the improvement and optimization of clinical practices in cardiovascular surgery, interventional cardiology, and minimally invasive departments, such as surgical planning and postoperative functional assessment.

Taking coronary heart disease as an example, China performs over one million percutaneous coronary intervention (PCI) procedures annually. Traditional coronary imaging data provide insufficient accuracy in assessing coronary stenosis, and there is a lack of rapid and accurate functional data for evaluating coronary ischemia. Currently, clinical practice primarily relies on invasive fractional flow reserve (FFR) measurements to determine indications for PCI. However, SHENGSHI science and technology’s CardioSim FFR-CT software offers clinicians and patients more precise data on coronary stenosis through a non-invasive approach. Compared with other similar products, CardioSim FFR-CT employs a globally unique reduced-order computational fluid dynamics algorithm, featuring advantages such as low data dependency, broad applicability, and high computational efficiency. Furthermore, the company is committed to exploring the application value of medical imaging data from CT angiography (CTA), magnetic resonance imaging (MRI), and ultrasound. It has developed and储备ed a series of non-invasive, precision diagnostic and therapeutic products for clinical applications in coronary arteries, large vessels, and structural heart disease.

Mechanical circulatory support is a life-support technology that serves as a critical “bridge” therapy for acute cardiac events and end-stage heart failure, with substantial and inelastic clinical demand. However, such products entail extremely high technical barriers. Given China’s relatively weak foundation in medical R&D, only a few products for limited application scenarios have been approved to date. High-end devices capable of meeting the vast majority of clinical needs remain heavily reliant on imports or are constrained by technological limitations.

Taking Abiomed’s percutaneously implanted left ventricular assist device, Impella, as an example, it is currently the only approved ultra-miniature heart pump worldwide. Due to its simple implantation procedure, minimal invasiveness, and effective improvement in cardiac hemodynamics, the product achieves annual sales nearing $1 billion, primarily providing intraoperative support for high-risk PCI and acute cardiogenic shock. However, this clinically significant product has not yet entered the Chinese market. Furthermore, under the impact of the COVID-19 pandemic, clinical attention to ECMO devices has further increased. In September 2020, the National Health Commission issued a document requiring that intensive care units in all Grade III Class A hospitals across China be equipped with ECMO systems, leading to rapid year-on-year growth in China’s demand for ECMO. Nevertheless, core key technologies for ECMO have long been monopolized by foreign companies, resulting in expensive equipment and consumables. These factors highlight the predicament China faces in the adoption of high-end mechanical circulatory support medical devices.

Leveraging its globally leading technologies in hemodynamic numerical simulation and experimental mock-loop testing, SHENGSHI TECHNOLOGY CO. LTD has independently designed and developed several short- to medium-term mechanical circulatory support (MCS) products. These innovations effectively address core technical challenges commonly associated with such devices, including hemolysis, thrombosis, and poor long-term stability. Featuring innovative product structures and core components that are global firsts, the company holds full independent intellectual property rights and has achieved complete localization of all components. By adopting aerospace-grade quality control systems and reliability research methodologies, the company ensures the safety and efficacy of its product design and development. With the support of this round of financing, SHENGSHI TECHNOLOGY CO. LTD will further increase R&D investment to efficiently iterate and deliver products with truly independent Chinese intellectual property rights.

Gao Qi, founder of SHENGSHI Technology, stated, “The healthcare industry is vital to people’s livelihoods. We are honored to participate in such a significant endeavor from the perspective of integrating medicine and engineering. We approach this industry with a strong sense of responsibility and reverence. This sector requires sustained accumulation, and SHENGSHI is currently in the process of building its foundation. We believe that through our efforts, we will ultimately achieve our mission: ‘Caring for health with science, safeguarding life with technology.’”

Yin Jie, Partner at Yuansheng Venture Capital, stated: “As one of the largest sub-segments in the medical device industry, the cardiovascular field continues to present numerous unmet clinical needs, while domestic substitution of related products faces significant challenges in cutting-edge technological areas. Professor Gao Qi and his team have creatively applied fundamental fluid dynamics technologies to the cardiovascular medical field, opening new avenues for domestic substitution and independent innovation in high-end medical devices. We are optimistic about the team’s sustained creativity and engineering capabilities in the interdisciplinary field of medicine and engineering, their dedication to meticulous product refinement and pursuit of excellence, and their potential to establish SHENGSHI science and technology as a model for independent innovation in China’s high-end medical device sector.”

Jiang Yongxiang, Partner at Bangming Capital, stated: “There are numerous pain points in the current diagnosis and treatment of cardiovascular diseases in China. SHENGSHI science and technology boasts a first-class fluid dynamics team and has developed a series of cardiovascular diagnostic software products and mechanical circulatory support hardware products based on globally leading hemodynamic detection and in vitro simulation technologies, thereby breaking foreign monopolies. We are delighted to collaborate with such an outstanding enterprise and its entrepreneurs, and we look forward to seeing SHENGSHI’s products brought to market soon to benefit patients.”

Zhao Wenyu, General Manager of the Zhejiang University Innovation Institute, stated: “As the primary platform for the investment and commercialization of Zhejiang University’s scientific and technological achievements, the Zhejiang University Innovation Institute is committed to supporting the translation and commercial development of research outcomes from Zhejiang University professors and alumni. Professor Gao Qi is an outstanding young professor at the School of Aeronautics and Astronautics of Zhejiang University, whom we have been closely following for a long time. We have maintained close attention to Professor Gao since the inception of SHENGSHI TECHNOLOGY CO. LTD, and we are honored to participate in this funding round alongside market-oriented institutions, aiming to provide robust backing from Zhejiang University for the company’s growth.”

Jiang Peiyuan, Partner at Changhai Capital, stated: “It is our honor to have assisted SHENGSHI Technology in successfully completing this round of financing. The company’s founder, Professor Gao, is a leading expert in fluid dynamics in China. The core team has dedicated a decade to honing their expertise in this field, accumulating profound insights and robust technological capabilities. Upholding the aerospace sector’s principles of ‘independence, self-reliance, and independent innovation,’ the company is committed to breaking the technological monopoly held by foreign firms in the field of circulatory assist support, thereby providing safe and reliable, domestically produced, precision diagnosis and treatment solutions for cardiovascular patients. We look forward to continuing to support SHENGSHI Technology’s vigorous growth and navigating the seas together toward a prosperous future.”

Orchid Venture Capital is an investment firm focused on early-stage and growth-stage healthcare companies. Headquartered in Suzhou BioBAY, it has a global reach. To date, Orchid Venture Capital has invested in over 140 outstanding life sciences and healthcare companies, spanning four key sectors: novel drug development, medical devices, in vitro diagnostics (IVD) and precision medicine, as well as healthcare services. The firm has delivered substantial investment returns, with 13 of its portfolio companies having gone public on capital markets such as the Hong Kong Stock Exchange and the STAR Market. Orchid Venture Capital has been repeatedly recognized as one of the Top 10 venture capital funds in China’s healthcare sector and as one of the most active healthcare investment institutions in China. Backed by a team of seasoned professional investors and world-class scientific advisors, Orchid Venture Capital possesses extensive experience in entrepreneurship, venture capital, and corporate operations within the biopharmaceutical industry and beyond. Leveraging our professionalism, focus, and rich industry resources, we are committed to becoming one of the most successful healthcare and pharmaceutical venture capital funds in China.

Bonming Capital, established in 2010, is a professional venture capital firm that has long adhered to the philosophy of value investing and focuses on investing in “technology + growth” enterprises. Since its inception, Bonming Capital has been dedicated to key technologies and technological innovations in the fields of electronic information semiconductors, healthcare, and energy conservation and environmental protection. Upholding the spirit of “long-termism” and the concepts of value discovery and value creation, we are committed to growing alongside China’s most promising sci-tech innovators and entrepreneurs, jointly building their innovative ventures.

Zhejiang University Innovation Technology Research Institute Co., Ltd. (hereinafter referred to as “ZJU Innovation Institute”), serving as the primary platform for the transformation and industrialization of scientific and technological achievements at Zhejiang University, firmly adheres to its mission of “aggregating high-end resources, building sci-tech innovation platforms, and cultivating high-growth technology enterprises.” The Institute further focuses on three key sectors: medical and general health, next-generation information technology, and military-civilian integration (intelligent manufacturing/new materials). Internally, it collaborates with outstanding research teams and leverages scientific and technological achievements from Zhejiang University; externally, it aligns with the trends of sci-tech innovation and market demands. By strengthening synergistic cooperation with relevant entities within the science and technology industry segment of Zhejiang University Holdings Group, the Institute has incubated and participated in investing in a portfolio of high-potential technology enterprises, thereby serving society and benefiting the public through sci-tech innovation.

Changhai Capital, established in 2021, is a financial advisory firm specializing in the healthcare and medical sectors, providing companies with in-depth, customized financing strategies and services. The team possesses extensive industry experience in medical devices, in vitro diagnostics (IVD), and healthcare services, having led and participated in the financing rounds of numerous high-profile enterprises, thereby assisting them in achieving rapid growth and maximizing their value.