Edge Medical Completes Nearly RMB 600 Million Series B Funding Led by LYFE Capital and Kangji Medical, Files IPO Prospectus

In January 2021, Shenzhen Edge Medical Technology Co., Ltd. (hereinafter referred to as “Edge Medical”) announced the completion of its Series B financing round, raising nearly RMB 600 million. The round was co-led by LYFE Capital and Kangji Medical (09997.HK), with existing shareholders 3H Health Investment and Guoce Investment also serving as co-lead investors. Vertex Venture Management, BioTrack Capital, Beijing Alwin Asset Management, Ltd., and existing shareholder POLY CAPITAL MANAGEMENT CO., LTD. participated as follow-on investors. This financing will further propel Edge Medical’s surgical robotics business into a new phase, accelerating production line construction, global regulatory registrations, and market promotion.

Edge Medical was founded in Shenzhen on May 4, 2017, by two PhD holders who had studied at the Massachusetts Institute of Technology (MIT) and Harvard University in the United States. With a mission to advance surgical procedures, the company is dedicated to the development and widespread adoption of intelligent surgical robot platforms. It is the only company in China and the second globally to simultaneously master technologies for both single-port and multi-port surgical robots. The company’s core team comprises scientists from world-renowned institutions such as MIT, Harvard, and Imperial College London, as well as key engineers from leading enterprises like Siemens and Huawei. This team possesses extensive interdisciplinary expertise spanning mechanics, electronics, artificial intelligence, materials science, medical imaging, and industrial design. Through years of accumulation, Edge Medical has independently mastered multiple core technologies related to surgical robots, including structural design, system control, motion algorithms, and AI algorithms, establishing a comprehensive proprietary intellectual property system with over 300 patent applications filed domestically and internationally. In 2020, the company was recognized as one of the “Top 50 Most Innovative Companies in the Guangdong-Hong Kong-Macao Greater Bay Area” and one of the “Top 50 Biotech Innovation Enterprises in the Guangdong-Hong Kong-Macao Greater Bay Area.” In 2019, it was honored as one of the “Top 20 Leading Biotech Enterprises in Shenzhen” and one of the “Top 50 Biotech Innovation Enterprises in the Guangdong-Hong Kong-Macao Greater Bay Area.”

Currently, Edge Medical has established three major product pipelines centered on robotic technology, including the multi-port laparoscopic surgical robot system with the widest current application range, the single-port laparoscopic surgical robot system representing the future direction of surgical development, and ultra-high-definition 3D endoscopes.

Since its inception, minimally invasive surgical robots have been widely applied in urology, cardiothoracic surgery, gynecology, general surgery, and other fields, offering broad market prospects. In 2018, the global surgical robot market was valued at USD 5.5 billion, and it is projected to reach USD 25 billion by 2025, representing a compound annual growth rate (CAGR) of 24.4%. Faced with substantial market demand, domestic surgical robots are operating at high capacity, with an average of 388 procedures per unit annually, significantly higher than the global average of 198. In 2019, the total number of surgeries in China exceeded 55 million, while the volume of robot-assisted surgeries was only around 50,000, indicating immense demand for surgical robots.

Edge Medical adheres to its mission of “empowering physicians and benefiting patients” and its vision of “making surgical robots a standard fixture in operating rooms.” The company is committed to promoting the widespread adoption of surgical robots, enabling more physicians both in China and abroad to access “super-intelligent tools” for surgery. This approach reduces the technical skill requirements during procedures, shortens the learning curve for surgeons, and empowers a broader range of physicians to perform complex surgeries. By providing precise and effective surgical solutions, Edge Medical aims to improve therapeutic outcomes and benefit a wider patient population. Furthermore, the company anticipates that in the near future, surgical robot systems will be deployed in a broader range of hospitals, thereby enhancing clinical surgical capabilities, helping to address the challenges of tiered diagnosis and treatment in society, and meeting the rapidly growing demand for high-quality medical services.

It is understood that Edge Medical’s three major products are currently advancing steadily, with its multi-port and single-port laparoscopic surgical robot systems both having entered the clinical trial phase. In addition, Edge Medical has established several modern, high-level production lines for laparoscopic surgical robots. By adopting Japanese production management systems, the company has built a comprehensive production management process system and a quality assurance system compliant with Good Manufacturing Practice (GMP) requirements. The entire project has now entered the trial production phase.

Multi-port Laparoscopic Surgical Robotic System

After three generations of prototype iterations, Edge Medical’s multi-port laparoscopic surgical robot system has been fully finalized, initiated small-scale trial production, and entered the clinical trial phase. The Edge multi-port robot adopts technical approaches including master-slave control, intuitive teleoperation, and a four-arm structure, and is equipped with an ultra-high-definition 3D endoscope. Its performance parameters, such as master-slave mapping frequency and image latency, have reached internationally leading levels. The system has successfully completed over one hundred animal experiments in the preliminary stage and has received high acclaim from numerous top surgical experts. In future clinical applications, the Edge multi-port robot will provide surgeons with excellent hand-eye coordination consistency, flexibility and precision surpassing human hands, a comfortable operational experience, and superior 3D visual effects.

Single-Port Laparoscopic Surgical Robotic System

Edge Medical’s single-port laparoscopic surgical robot system is a cutting-edge product on the global stage. As early as 2018, it conducted China’s first animal trial of single-port surgical robotics. After three generations of iterative prototype development, the design was finalized in 2020, and small-scale trial production commenced. The Edge Medical single-port robotic prototype has achieved internationally advanced levels in key technical indicators, including mechanical performance, precision, image resolution, and system latency. The company’s proprietary nine-axis linkage technology, based on 20-wire transmission, enables the operating arms to achieve seven degrees of freedom within confined spaces, mimicking the dexterity of the human arm for more flexible and precise surgical maneuvers. In clinical applications, the Edge Medical single-port robot can further minimize surgical trauma and reduce the risk of intraoperative and postoperative infections, offering significant clinical advantages. Currently, Edge Medical’s single-port surgical robot has initiated clinical trials and is poised to become the first such product launched in China and the second worldwide. Upon market approval, it will be utilized for typical surgical procedures in urology, gynecology, thoracic surgery, and other specialties.

Ultra-High-Definition 3D Endoscope

Edge Medical’s ultra-high-definition 3D endoscope features a novel hardware architecture with dual-channel independent 2K image acquisition. It incorporates proprietary active anti-fog technology and wideband dynamic noise reduction, delivering sharper images and more accurate color reproduction. By adopting an innovative integrated software-hardware design approach, the entire endoscopic system achieves ultra-low latency, ensuring smoother surgeon control under endoscopic visualization and realizing the principle of “what you see is what you get.”

“We sincerely appreciate the recognition and support from our investors! Since its inception, Edge Medical has adhered to a spirit of striving for excellence, dedicating itself to advancing core technologies and refining products to perfection. The company has completed multiple technological iterations across its three major product pipelines, striving to develop superior surgical solutions that meet the needs of physicians. We hope that once Edge’s robotic and endoscopic products are launched in the market, they will further empower physicians, enabling more patients to benefit from advanced surgical treatments and enjoy an improved quality of life,” stated Dr. Wang Jianchen, Founder of Edge Medical. “The proceeds from this financing round will be used to support clinical trials, regulatory registration, and subsequent marketing efforts for Edge’s products. In the future, Edge Medical will continue to invest heavily in platform technologies related to surgical robots, making them increasingly intelligent and comprehensive in functionality, with the vision of establishing surgical robots as standard equipment in operating rooms.”

Chen Gang, Partner at LYFE Capital, stated: “Laparoscopic robotic surgery offers clear clinical benefits and meets significant demand, having become the most important development direction and trend in the field of surgery. China boasts the largest surgical volume market globally, with the number of minimally invasive surgeries continuing to grow rapidly. However, the installation base and procedural penetration rate of domestic laparoscopic surgical robots in hospitals remain extremely low, indicating a vast untapped market and substantial unmet clinical needs. Edge Medical is one of the few platform companies in China possessing comprehensive product development capabilities and simultaneously deploying both single-port and multi-port laparoscopic robotic systems. The founding team has deep industry expertise and strong overall execution capabilities, creating significant synergies with LYFE Capital. We are bullish on Edge Medical’s long-term potential to become an industry leader in China’s laparoscopic surgical robot sector, driving the widespread clinical adoption of these technologies and benefiting patients.”

Zhong Ming, Chairman of Kangji Medical, stated, “Surgical robots will see increasingly widespread application in future thoracic and laparoscopic surgeries. Edge Medical focuses on the development of surgical robotic products and consumables for thoracic and laparoscopic procedures, which aligns with Kangji Medical’s development strategy. The core management team led by Dr. Wang Jianchen possesses interdisciplinary backgrounds in medical devices, electronics, artificial intelligence, materials science, and medical imaging, and has extensive experience and exceptional capabilities in surgical robot product development and business management. We are optimistic about Edge Medical’s growth prospects.”

Sheng Li, Partner at 3H Health Investment, stated, “As a staunch supporter of Edge Medical, we have invested in the company three times consecutively over the past year. This fully demonstrates 3H Health Investment’s strong confidence in the laparoscopic robotic surgery sector and further highlights the exceptional capabilities of Edge Medical’s management team. 3H Health Investment will join hands with new investors to accelerate Edge Medical’s rapid growth, helping it become a leading platform enterprise in China’s surgical robotics field.”

LYFE Capital is a healthcare-focused investment firm established in 2015, with assets under management exceeding $1.3 billion. LYFE Capital is dedicated to investing in companies in the Chinese and U.S. markets that boast strong management teams and compelling visions. Its investment focus spans biopharmaceuticals, medical devices, and medical diagnostics. LYFE Capital works closely with its portfolio companies, providing not only financial support but also assistance with international business expansion, identifying overseas partners, and actively supporting market planning and team development to facilitate product approvals and market access.

Kangji Medical (09997.HK) is a Hong Kong-listed company specializing in the research and development, production, and sales of minimally invasive surgical instruments and associated consumables (MISIA). The Company’s products are distributed through its extensive sales network to over 3,400 hospitals in China (including more than 1,000 Grade A tertiary hospitals), covering all provinces, municipalities, and autonomous regions across mainland China. Its products are also exported to 42 other countries and regions.

3H Health Investment is a private equity fund focused on the healthcare industry. With a global perspective, it deeply cultivates and invests in innovative technologies within the medical field, driving their clinical translation and industrialization to save more lives while improving patients’ quality of life. Leveraging extensive resources in clinical practice, industry, and policy, 3H Health Investment collaborates with partners to build great health technology enterprises.

Guoce Investment is a boutique investment firm that has long focused on structural growth opportunities in China, primarily targeting core opportunities arising from import substitution and technological innovation in the tech manufacturing sector.

Vertex Ventures, established in 1988, is one of the earliest venture capital firms in Asia and a subsidiary of Temasek Holdings. Vertex Ventures China launched its early-stage venture capital business in China in 2008. With assets under management exceeding RMB 10 billion, it is committed to investing in high-growth innovative enterprises in China, with a strategic focus on three key sectors: innovative technology, the new digital economy, and healthcare.

BioTrack Capital is a specialized investment firm dedicated to investing in and incubating outstanding healthcare startups in the Chinese market. The fund continuously explores and seeks out innovative biotechnology, medical technology, and healthcare business models in China, with the aim of creating greater value for its investors.

Alwin Capital is a specialized fund focused on the life sciences sector. Its core management team possesses extensive investment and research backgrounds in the healthcare and pharmaceutical industries. To date, Alwin Capital has invested in dozens of companies within the life sciences field, cultivating leading enterprises across multiple sub-sectors.

Poly Capital is a professional private equity fund management company under China Poly Group. It adheres to an investment strategy centered on the real estate industry chain, integrating traditional real estate with emerging technology industries through a dual approach of “AI-driven upgrading + business empowerment.”