Sail Medical Secures Hundreds of Millions RMB in Series A Funding, Advised by Haoyue Capital

VCBeat has learned that Changzhou Saile Medical Technology Co., Ltd. recently announced the completion of its Series A financing round, raising hundreds of millions of RMB. The round was jointly invested by prominent institutions including Honghui Capital, Yida Capital, Sequoia China, and Chengshu Investment, with Haoyue Capital serving as the exclusive financial advisor. The successful closure of this financing round reflects the capital market’s recognition of Saile Medical’s strengths in the dental care sector and its expectations for the company’s future growth. Saile Medical stated that it will further enhance its capabilities and strive to become a global platform offering top-tier dental medical products and solutions in China.

Sailor Eight-Tooth Product Family Portrait

Changzhou Selle Medical Technology Co., Ltd. was established in 2016, starting with root canal treatment equipment. Since its inception, the company has adhered to the philosophy of “innovation-driven, quality-first, demand-focused, and academically empowered,” creating a closed-loop product ecosystem for comprehensive root canal solutions. It has consistently launched blockbuster products whose quality rivals that of international giants. Its intelligent, lightweight, and highly cost-effective products have gained widespread recognition from dentists both domestically and abroad since their launch, with sales rising steadily. Despite the pandemic, sales doubled in 2020, surpassing RMB 100 million for the first time. The company’s products are exported to 130 countries and regions worldwide, establishing a self-owned brand with significant international influence.

The core members of the company’s R&D team possess composite backgrounds in both general healthcare and dental medical products. Hailing from domestic and international industry giants such as Dentsply Sirona and Mindray, they bring years of R&D experience and expertise, ensuring efficient product commercialization and leading-quality standards. Building on the successful launch of its root canal series, the company has, within just a few years of development, leveraged its strong R&D capabilities to expand its product portfolio into essential imaging equipment for clinical practice, including intraoral sensors and X-ray machines. The company has also made strategic entries into the digital dentistry sector, progressively refining its product lineup. Its strategy involves a precise and steady transition from low-margin, high-demand essential products to high-value-added premium offerings. Following the completion of this financing round, the company will not only accelerate the commercialization of its existing product lines but also further expand its layout in dental medical consumables.

The company’s founding team is young, dynamic, and highly adept at learning, combining years of experience and accumulated expertise in overseas market expansion with the marketing team’s strong understanding and execution capabilities. In less than five years, the company has grown into a leading domestic global platform, achieving solid and efficient commercial implementation. Looking ahead, the company will further integrate resources from both capital and industrial sectors, accelerate the expansion of its pipeline in high-value consumables such as digital dentistry, dental implants, and prosthodontics, and gradually establish a comprehensive product portfolio across the upstream dental industry chain. Against the backdrop of a booming domestic dental healthcare industry, and leveraging the multi-trillion-dollar global downstream market demand, the company is committed to catching up with international giants such as Dentsply Sirona and Envista, playing an increasingly important role in the global dental healthcare supply chain, and benefiting more dentists and patients with high-quality products and services.

Mr. Tao Huan, Founder and CEO of Sailuo MedicalHe stated that general healthcare and dental care are two entirely distinct disciplines with completely independent ecosystems, characterized by vastly different customer profiles and commercialization logics. The dental care sector exhibits a higher degree of marketization and possesses certain consumer-oriented attributes. Simply replicating experiences from general healthcare in the dental field is likely to fail; it requires companies to have a deep understanding and insight into the unique characteristics of dental care, its customers, and market demands. Our team boasts rare composite talent with expertise in both general healthcare and dental care. We can seamlessly integrate the mature R&D systems and management advantages of general healthcare into the dental sector, developing products that meet the needs of the market and customers at various stages, with quality comparable to international giants. This has been fully validated by our root canal series and imaging product lines. Our pipeline layout has gradually expanded from a small closed loop of root canal treatment to a comprehensive closed loop of general dental treatment products and solutions. In the future, we will also enter the high-value consumables sector. With capital support, we aim to build an industry-leading, digitally interconnected one-stop product ecosystem platform. This will address core industry pain points, fully empower our global customers, and reshape the global perception of Chinese brands among dentists worldwide.

HLC Capital (HLC)stated, “We are delighted to join forces with prestigious institutions such as Sequoia Capital and Yida Capital in supporting Saile’s growth. We believe that under the leadership of Mr. Tao, Saile’s dynamic team, characterized by its strong learning agility, will establish the company as a leading platform provider of dental medical products and solutions in China.”

Mr. Xue Yi, Partner at Yida CapitalYida Capital stated that the dental industry is a key sector of focus, and Sailuo Medical represents another significant investment layout by Yida Capital in this field. The dental industry possesses dual attributes of healthcare and consumption upgrading. Globally, the dental industries in developed countries such as those in Europe and the United States are relatively mature in terms of clinic numbers and overall medical standards, whereas the dental industry in developing countries, represented by China, is still in its early stages, holding immense potential for future demand. As an emerging dental medical device company, Sailuo Medical boasts a young and dynamic team with highly innovative and forward-looking business layouts. Starting with basic root canal treatment instruments as a breakthrough point, Sailuo has established a systematic product portfolio and strong brand reputation. By seamlessly integrating internet marketing with professional medical academic education, the company has built a high-stickiness sales network in over 100 countries worldwide within just five years. We are very optimistic about the management team led by Mr. Tao and believe that as the company’s strategic layout is gradually implemented, Sailuo Medical has great potential to evolve from a dark horse into a leading enterprise in the dental industry.

Sequoia China expressed its pleasure in participating in Sailuo Medical’s Series A financing round. With the rapid growth of China’s national economy and the continuous rise in consumption levels, the oral healthcare industry is expected to maintain broad development prospects in the coming years. Root canal therapy and the associated small equipment required for clinic operations constitute fundamental services for dental clinics, presenting an excellent entry point for upstream enterprises. Sailuo Medical’s products demonstrate significant innovative advantages and high cost-effectiveness. By entering the market with essential, high-frequency-use equipment and providing high-quality, compact devices that closely align with clinical needs, the company has achieved strong customer satisfaction and user stickiness. We are also optimistic about the company’s young and dynamic team, which is actively developing digital marketing channels and building its product brand through both online and offline training programs. We look forward to Sailuo Medical continuously expanding its business boundaries from its focused root canal therapy ecosystem, ultimately evolving into a global one-stop dental solutions provider.

Mr. Wu Yinghui, Partner at Chengshu InvestmentChengshu stated that oral healthcare is a key sub-sector it has long been bullish on, continuously monitoring and strategically investing in. It is delighted to have reached an investment partnership with Sailuo Medical, a leading enterprise in the dental equipment industry. The management team of Sailuo Medical, led by Mr. Tao, possesses a global perspective and exceptional execution capabilities, along with a profound understanding of the industry’s core pain points and customer value. We look forward to Sailuo Medical continuing to provide high-quality products and services to global customers and becoming China’s premier platform for the globalization of dental equipment.

Mr. Yang Zhenjun, Partner at Haoyue CapitalHao Yue Capital expressed that it is deeply honored to have assisted Selle Medical in completing this round of financing. The dental sector represents a major industry with sustained, rapid growth, positively correlated with the level of economic development. In recent years, as China’s economy has developed rapidly and steadily, upstream enterprises in the dental industry have also entered a phase of accelerated growth. However, compared to the broader healthcare sector, the dental industry started its development relatively later; consequently, there remains significant room for improvement in capital consolidation awareness and corporate governance standards among China’s upstream dental companies at the current stage. As the substantial market demand from downstream service providers is gradually unleashed, the dental industry is approaching a pivotal growth window. We believe that, with the support of capital, the gap between dental companies and larger healthcare enterprises will narrow rapidly, while management standards will continue to improve. Leading companies such as Selle Medical are poised to strengthen their competitive advantage in this context, swiftly advancing into a platform-based development stage. With the curtain already raised on large-scale industry consolidation, we are highly optimistic about the emergence of one or even multiple Chinese dental healthcare giants capable of rivaling international leaders such as Dentsply Sirona, and making their mark on the global market.

HLC Capital (HLC) is an asset management company dedicated to driving technological innovation, leveraging deep industry insights as its core competency to empower key sectors such as healthcare and consumer goods, and creating long-term value. With assets under management exceeding RMB 10 billion, HLC Capital has established offices in Shanghai, Beijing, and Shenzhen. To date, the firm has invested in more than 90 high-quality enterprises, over 20 of which are listed on the Shanghai Stock Exchange, Shenzhen Stock Exchange, Hong Kong Stock Exchange, and Nasdaq. Its portfolio includes Mindray Medical, WuXi AppTec, Tigermed, Pharmaron, United Imaging Healthcare, Borui Medicine, Sansure Biotech, and Abogen Biosciences.

Addor Capital was established through the internal mixed-ownership reform of Jiangsu High-Tech Investment Group, a well-established and renowned venture capital firm. It consistently ranks among the industry leaders in terms of industry research capabilities, assets under management (AUM), and investment specialization. Leveraging years of industry experience, Addor Capital has built an equity investment fund system that serves the entire lifecycle of innovation and entrepreneurship. Its investment portfolio spans multiple strategic emerging industries, including clean technology, healthcare, new materials, advanced manufacturing, smart transportation, consumer services, cultural industries, and TMT. As of June 2021, the management team of Addor Capital had cumulatively managed RMB 114.1 billion in capital, invested in and supported 1,021 startups, and helped 211 of these companies list on domestic and international capital markets.

Sequoia Capital has always been committed to helping entrepreneurs build enduring, great companies, bringing abundant global resources and valuable historical experience to its portfolio companies. Over the past 49 years, Sequoia Capital has invested in numerous innovative enterprises and leaders shaping industry trends. As “entrepreneurs behind entrepreneurs,” Sequoia Capital China focuses on investment opportunities in three sectors: TMT (Technology, Media, and Telecom), healthcare, and consumer goods/services. Over the past 16 years, Sequoia Capital China has invested in nearly 600 companies characterized by distinct technological features, innovative business models, and high growth potential.

Chengshu Investment was established in 2010, focusing on growth-stage investments in the broader healthcare sector, with a particular emphasis on growth and early-stage opportunities in consumer healthcare and life sciences. The Chengshu management team possesses deep insights into corporate growth dynamics, along with extensive industry resources and capital market experience. It is committed to continuously empowering the growth of portfolio companies and creating long-term, sustainable value for investors.

Haoyue Capital, founded in January 2014, is committed to serving as a bridge connecting China’s healthcare industry with capital. Its research and transaction coverage spans multiple sub-sectors, including innovative medical devices, biopharmaceuticals, IVD and precision medicine, healthcare services, and smart healthcare. The Haoyue Capital team comprises senior investment bankers with extensive experience in China’s healthcare sector. By closely monitoring market dynamics and investment trends in healthcare over the long term, the firm publishes weekly healthcare investment reports and thematic research studies, offering Haoyue’s perspectives on new policies and emerging frontiers.