D1Med Completes RMB 120 Million Series A Financing to Accelerate Clinical Organoid-Based Drug Guidance and New Drug Development Services

Recently, Danwang Medical Technology (Shanghai) Co., Ltd. (“Danwang Medical”) successfully completed its RMB 120 million Series A financing round. This round of financingLed by Guofang Capital, with participation from Delian Capital and Kunlun Capital, as well as investors from the previous roundKaifeng Venture Capital, Lingxian Health Fund holdFurther Capital Injection。BMD Capital served as the exclusive financial advisor for this round of financing. This marks Danwang Medical’s second financing round completed within 12 months. The funds raised will be primarily used to accelerate the upgrade of standardized and automated organoid technologies, enhance and optimize production capacity, advance product registration filings, promote clinical trials, and expand new drug R&D services.

Danwang Medical (D1Med) is a globally positioned biopharmaceutical company and a pioneer in the field of organoids. D1Med is dedicated to translating cutting-edge organoid technology into clinical applications, including disease diagnosis and treatment, new drug screening, and the development and identification of tumor markers. The company provides personalized precision treatment plans for clinical patients while offering pharmaceutical enterprises a "one-stop" precise, efficient, and high-quality organoid-based new drug R&D service. As a platform company specializing in organoid disease models, D1Med boasts a professional team in the organoid sector. Dr. Hua Guoqiang, the founder, has cultivated organoid technology for over a decade, accumulating extensive experience in establishing disease models and preclinical drug development. The technical team comprises multiple international top talents in the field of organoids. Notably, Academician Hans Clevers, regarded as the founding father of international organoid research, has joined D1Med as a co-founder and chief advisory scientist, solidifying D1Med's global leadership in organoid technology.

Dr. Hua Guoqiang, Founder of Danwang Medical“The use of organoids as patient ‘avatars’ means that establishing a tumor organoid model is equivalent to replicating a cancer patient in the laboratory. By integrating clinical data with drug sensitivity profiles, we can truly achieve the creation of a ‘Patient in the Lab.’ Organoid models address many of the current pain points and bottlenecks in clinical practice and pharmaceutical research. Danwang Medical is strategically building a high-standard ‘Patient in the Lab’ organoid biobank. Leveraging this diverse cohort of ‘Patients in the Lab,’ we aim to harness the advantages and potential of organoid models in new drug target discovery and validation, translational research, and organoid clinical trials. We are honored to have completed our Series A financing in a short timeframe, securing investment from renowned funds such as Guofang Capital, Delian Capital, and Kunlun Capital, along with increased support from existing shareholders Kaifeng Venture Capital and Lingxian Health Fund. We also extend our gratitude to BMD Capital for their professional support. We will remain focused on the field of organoid disease models, accelerating the standardization and automation of organoid technologies, and rapidly advancing the application of organoid technology in personalized precision medicine and new drug development.”

Mr. Li Junqiang, Founder and General Manager of Danwang Medical“It represents that tumor organoids are the most advanced precision medicine technology currently available. They not only serve as patient surrogates for drug testing but, more importantly, carry vast amounts of genetic data that can facilitate the discovery of new therapeutic targets and accelerate subsequent novel drug development. The tumor organoid drug screening platform provides an innovative disease model for new drug development, significantly accelerating the R&D process while reducing costs. After more than a year of development, Danwang Medical has established automated and standardized production lines for various types of organoids, cultivating tumor organoids from the stomach, intestine, liver, pancreas, lung, breast, and other tissues, thereby creating China’s most comprehensive tumor organoid biobank. This Series A financing will accelerate the upgrading of standardized and automated organoid technologies, enhance and optimize production capacity, advance organoid-based clinical trials, support product registration filings, and expand the scope of services for novel drug development using organoids.”

Professor Hans Clevers, Founder and Chief Scientific Advisor of Danwang MedicalHe stated, “China has a vast patient population, and the rapid advancement of its healthcare standards in recent years has created highly favorable conditions for the industrial implementation of organoid technology. We are delighted to witness Danwang Medical’s rapid growth in China, and we appreciate the capital market’s favor toward the organoid sector as well as its recognition of our technical team. Organoids exhibit high similarity to in vivo tissues; functional drug testing based on this platform will provide patients with more precise companion diagnostic results, ushering personalized precision medication into the era of Next Generation Diagnostics (NGD).” Furthermore, organoids are gradually replacing traditional models in the early stages of drug development. Through over a decade of organoid research, we have found that tumor samples from many patients can be established as long-term organoid cultures. These patient-derived organoids display phenotypic characteristics highly consistent with primary tumors and retain significant tumor heterogeneity. Capital injection will accelerate the application of organoid technology. We can anticipate that within the next five years, organoids will replace animal models for toxicological assessment, and cell line models will be progressively supplanted by organoids.

Mr. Sun Min, Managing Partner at Guofang Capital“The organoid technology holds broad application prospects and commercial potential in areas such as clinical medication guidance and new drug development. Danwang Medical possesses a globally leading innovation platform for organoid technology. Its founding team is outstanding, complementary, and highly executable, with a very clear strategic direction for the company’s future development. Guofang Capital is highly optimistic about Danwang Medical’s ability to rapidly achieve industrial implementation of organoid technology and lead the development of the organoid industry. We look forward to supporting Danwang Medical’s growth as a new shareholder and jointly promoting the translation of organoid technology achievements.”

Mr. Jiang Yangzhi, Healthcare Partner at Delian Capital“Developmental biology and regenerative medicine are key focus areas for Delian Capital. With breakthroughs in biotechnology and the accumulation of scientific research, this sector is continuously presenting opportunities for industrial translation and commercial application. As a disruptive technology, organoids hold significant scientific importance and broad application prospects in drug screening and drug sensitivity testing. Danwang Medical boasts an exceptional founding team with industry-leading academic standing, scientific research capabilities, and operational experience. The team has actively implemented engineering solutions and established a globally leading technology platform. We believe that Danwang Medical will lead industry development in the field of organoids, leveraging its comprehensive strengths to efficiently advance drug development and personalized medicine, thereby benefiting more patients and addressing unmet clinical needs.”

Mr. Zhu He, Managing Director of Kunlun Capital“Kunlun Capital is optimistic about the long-term growth drivers that innovative life science tools bring to the pharmaceutical and diagnostics industries. As an emerging in vitro evaluation platform, organoids demonstrate superior potential in throughput, cost-effectiveness, and efficacy compared to existing methodologies, and have been validated in numerous research and clinical projects in recent years. With the order-of-magnitude increase in data generated from drug and diagnostic development, along with the trend toward higher-resolution research techniques, the industry is seeking better experimental platforms to meet validation needs. We consider organoids to be the ideal ‘lab-on-a-chip’ model. The strong combination of scientific expertise and business acumen provided by Danwang Medical’s Scientific Founder, Dr. Hua Guoqiang, and CEO, Mr. Li Junqiang, has enabled the company to achieve rapid progress in both R&D and commercial operations within a short period. We also look forward to working alongside Danwang Medical to accelerate the empowerment of the diagnostics and pharmaceutical sectors through organoid technology.”

Dr. Huang Xin, Managing Partner of Kaifeng Venture CapitalIt stated: “As the most prominent emerging life science technology in recent years, organoids offer irreplaceable advantages in the field of precision medicine. Organoid technology holds immense commercial potential, both in clinical applications and drug development. We are optimistic about Danwang Medical’s global vision, its strategic layout for standardization, its accumulated R&D expertise, and its innovative business model.”

Mr. Wu Jialu, Founding Partner of Linghang Health Fundstated: “We are not only optimistic about the broad application prospects of organoid technology in clinical drug sensitivity testing, drug development, and scientific research, but also highly regard Danwang Medical’s profound technical accumulation in this field, as well as the founders’ relentless pursuit of core technology upgrades and product refinement. We look forward to Danwang Medical continuing to lead technological breakthroughs and product upgrades in the organoid field, providing researchers with highly valuable and efficient tools, and bringing hope to a wide range of cancer patients.”

Mr. Yang Hao, Founder and Managing Partner of BMD Capital“Organoid technology is an innovative, cutting-edge scientific field that has seen rapid development in recent years, holding immense commercial potential in both clinical applications and drug development. As the first company globally to initiate the establishment of organoid standards, Danwang Medical has taken the lead in completing the research and development of automated and standardized equipment, demonstrating significant advantages in original depth, clinical trials, culture platforms, and standardization layout. BMD Capital is honored to have assisted Danwang Medical in successfully completing this round of financing. We look forward to working hand in hand with the company for mutual growth.”

Shanghai Guofang Private Equity Fund Management Co., Ltd. (hereinafter referred to as “Guofang Capital”) was established in 2017. It is a market-oriented equity investment platform for technology assets in the Yangtze River Delta, initiated and built by Shanghai International Group. Currently, it manages capital exceeding RMB 10 billion. Since its inception, Guofang Capital has adhered to the spirit of “Dancing with Technology, Advancing with the Times,” focusing on three key frontier sectors: biomedicine, artificial intelligence, and the Internet of Things. It has formed an extensive ecological network that brings together key enterprises at critical nodes of the industrial chain. The firm successfully launched China’s first industry fund focused on the national strategy for the Yangtze River Delta and pooling state-owned capital from Jiangsu, Zhejiang, Anhui provinces, and Shanghai Municipality—the Yangtze River Delta Collaborative Advantage Industry Fund—actively promoting the overall ascent of these three provinces and one municipality to the high end of the industrial value chain. In recent years, Guofang Capital has made strategic investments in the biomedicine sector, including companies such as MGI Tech, MicroTech Medical, Nuofoos, Huihe Medical, Dingtai Pharmaceutical Research, MicroPort MedBot, ZhenGe Biotech, Hengyi Biologics, and Yikon Genomics.

Delian Capital, established in 2011, focuses on technology-driven projects in the fields of innovative healthcare, hard tech, and frontier technologies. In the realm of innovative healthcare, adhering to the core principles of “Science Based, Data Driven, Team Achieved,” Delian Capital prioritizes early- to mid-stage investment opportunities in China within third-generation therapeutic technologies (including cell therapy, gene therapy, gene editing, and small nucleic acids) and the IBAT (IT+AT+BT) niche sectors.

Kunlun Capital was founded in 2015, dedicated to long-term value investment and building long-term partnerships with entrepreneurs. It focuses on investing in companies that possess high technological barriers, exceptional founding teams, and explosive growth potential. In recent years, Kunlun Capital has successively invested in Kea Medical, BoYa Genomics, Cytek (NASDAQ: CTKB), Huida Gene, Obio Technology, Ocanas, Yuesai Biologics, Xunshi Technology, Inke (HK: 03700), Dada (NASDAQ: DADA), Dreame, Zhuyun, Pony.ai, PingCAP, Leyan Technology, and other enterprises.

Kaifeng Venture Capital is a Sino-US dual-currency venture capital firm focused on investing in early-stage technology companies, advocating a team culture of equality, transparency, sharing, and innovation. Established in 2009, the firm primarily focuses on the healthcare and IT hard-tech sectors, with assets under management exceeding RMB 5 billion. It has provided funding and resource support to more than 100 outstanding teams and projects. Kaifeng Venture Capital has helped over ten high-tech enterprises successfully go public, including Cytek (NASDAQ: CTKB), Conatus Pharmaceuticals (NASDAQ: CNTB), Thrive (NASDAQ: EXAS), InnoLight Technology (300308), Memsmicro (688286), Huaxing Zhiyuan (000008), and Aolian Electronics (300585). Meanwhile, it has empowered a large number of companies such as Taimei Medical Technology, Zenotech, Huake Precision, Maxphotonics, and Chuangyao Technology to stand out in their respective niche markets.

Linghang Health Fund is a venture capital fund established by seasoned healthcare investment professionals, dedicated to early-stage investments in the healthcare and medical sector. Adhering to the philosophy of “Focus and Professionalism,” we deeply explore industry trends and investment opportunities, filtering out noise and distractions to pursue genuine investment returns.

BMD Capital is a leading financial services firm in China, specializing in the healthcare and wellness sector. Its team comprises seasoned industry experts and professional investment bankers who possess deep insights into the healthcare industry and business models. The team is adept at navigating the complexities and structural challenges inherent in transactions, providing clients with specialized capital solutions for financing, mergers and acquisitions, and technology transfers.