Shukun Technology Raises RMB 590 Million in Largest Single Round Funding in Medical Imaging AI Sector, Files for IPO

On December 28, SHUKUN announced the completion of a new round of financing amounting to RMB 590 million. This round was led by Sequoia Capital China, with participation from China Reinsurance and CICC Pucheng. Existing investors Huagai Capital, Wuyuan Capital, Creation Ventures (CCV), Qiming Venture Partners, and Yuanyi Capital continued to participate in this round. China Renaissance served as the exclusive financial advisor for this financing. Since the beginning of this year, SHUKUN has raised nearly RMB 1 billion in total, making this the largest single-round financing in the medical imaging sector.

In response, SHUKUN stated: “This round of financing will be used to increase R&D investment in proprietary technologies, continuously enhance the core product portfolio of the ‘Digital Human’ platform, further accelerate the deployment of our products across medical institutions at all levels, and expedite the comprehensive integration of digital healthcare productivity into the smart hospital construction initiatives nationwide.”

Despite the challenges of 2020, SHUKUN Technology achieved remarkable success: During the early outbreak of the pandemic, its AI system for COVID-19 was developed to support epidemic control efforts, earning commendation from the Ministry of Industry and Information Technology (MIIT) and an invitation to present technological anti-epidemic achievements at the Beijing Municipal Government’s press conference on COVID-19; in November, its “Digital Heart” received China’s first Class III medical device certification for cardiac stenosis; and its “Digital Brain” collaborative research paper was published in a Nature journal, winning First Prize in the Beijing Medical Association competition.

Furthermore, SHUKUN has collaborated with regional Health Commissions to create “Digital Doctors Close to the People.” As the year drew to a close, the company was ranked among the top two Chinese enterprises in the “50 Most Promising Startups” list selected by the prestigious Silicon Valley media outlet The Information.

In November 2019, the cardiac AI solution was among the first to enter the innovative approval green channel. In November 2020, it received NMPA Class III certification, becoming the first approved product in the field of AI for cardiac stenosis and the first Class III certificate within SHUKUN’s “Digital Heart” product family.

Public data shows that the number of prevalent cardiovascular disease cases in China has reached 330 million, a figure likely to continue rising as population aging intensifies. The “Digital Heart” product family, an intelligent platform centered on cardiac care scenarios, comprises eight products that cover the entire disease lifecycle—including health screening, precise in-hospital diagnosis, preoperative assessment, and out-of-hospital follow-up. These solutions have been commercially deployed across healthcare institutions at all levels, including public hospitals, private hospitals, and regional medical service centers, cumulatively serving tens of millions of individuals.

In July 2020, SHUKUN globally launched its “Digital Brain” product suite, focusing on the 13 million stroke patients. In September 2020, a multicenter study conducted by SHUKUN and Xuanwu Hospital was published in a Nature journal. The research findings encompassed two main aspects.

1. In terms of improving hospital efficiency. From July to November 2019, the system was implemented at Xuanwu Hospital. It reduced the average image post-processing time from 14.22 ± 3.64 minutes to 4.94 ± 0.36 minutes, achieving a more than threefold reduction in time; the number of clicks required by technicians decreased from 115.87 ± 25.9 to 4. After five months of use, the number of physicians dedicated to post-processing was reduced from three to one.

2. In terms of patient benefits. Traditional head and neck CTA examinations obtain vascular images through manual subtraction for bone removal, a complex process that requires patients to undergo two scans; in contrast, AI technology enables the acquisition of diagnostic images with only a single scan, thereby reducing both physical and psychological stress on patients. The product has currently been deployed for validation and trial use in over 100 stroke centers across China, demonstrating excellent clinical outcomes.

In accordance with the “Healthy China 2030” Planning Outline, SHUKUN has pioneered its breakthroughs with “Digital Heart” and established a “Digital Human” intelligent medical imaging platform that includes “Digital Brain,” “Digital Chest,” and “Digital Abdomen.” This platform rapidly enhances healthcare delivery capabilities at all levels and comprehensively addresses the routine diagnostic and treatment needs of Chinese residents.

After more than three years of dedicated development, SHUKUN’s AI products have been deployed in hospitals at all levels. Products such as “Digital Heart” and “Digital Brain” have achieved end-to-end intelligence in imaging diagnosis workflows, enabling participating hospitals to provide medical services where patients can undergo examinations upon arrival and receive reports immediately. This has significantly enhanced patient experience and improved the efficiency of medical resource utilization in hospitals.

Currently, SHUKUN’s products are being used with high stickiness in over 400 Grade IIIA hospitals nationwide, including Peking Union Medical College Hospital, Beijing Anzhen Hospital, and Shanghai Ruijin Hospital. Among the top 30 hospitals on Fudan University’s cardiovascular hospital ranking, 29 have established deep clinical collaborations with SHUKUN in the field of cardiovascular care. In 2020, SHUKUN joined forces with its strategic partner Philips Healthcare to launch an intelligent cardiac CT solution, significantly increasing its market share and achieving commercialization progress that leads the industry.

Mr. Shen Nanpeng, Global Executive Partner at Sequoia Capital, stated, “As one of the most mature application scenarios for the integration of healthcare and AI, medical imaging diagnosis has seen the opening of Class III medical device certifications this year. This reflects the importance of AI to national healthcare innovation. Through differentiated clinical pathways, SHUKUN has achieved breakthrough innovations in both technology and business models within the field of cardiovascular and cerebrovascular imaging.”

Mr. Zeng Zhiqiang, Managing Partner of Huagai Capital’s Healthcare Fund, stated, “Huagai Capital has always been optimistic about the application prospects of artificial intelligence in the healthcare sector. Starting with its ‘Digital Heart’ solution, SHUKUN has step by step developed a series of AI products that address critical clinical needs. These solutions are now deployed in hundreds of hospitals, and the company has obtained the world’s first Class III medical device certification for AI-assisted diagnostic imaging of the heart. Huagai Capital led SHUKUN’s Series A financing and has continuously participated in every subsequent funding round. We believe that SHUKUN will remain a leading enterprise in the application of AI within the healthcare industry, continuing to create value for society.”

Liu Qin, Founding Partner of 5Y Capital, stated: “It has been just over two years since 5Y Capital’s initial investment in SHUKUN during its Series A round. In this short time, SHUKUN has evolved from a startup into an industry leader in the AI healthcare sector, achieving substantial revenue growth and the continuous launch of multiple products. What impressed us most about Mr. Mao and Anne at the outset was their differentiated strategic approach, which prioritized the development of medical knowledge graphs and established a robust technological infrastructure integrating AI and cloud computing. This clear strategy, coupled with strong execution, has enabled the company to truly realize the value of AI-empowered healthcare. Even more exciting is SHUKUN’s evolution from a portfolio of vertical-specific products toward an AI-powered intelligent diagnostic infrastructure with platform characteristics. We look forward to SHUKUN, bolstered by this new round of financing, continuing to contribute to better balancing supply and demand and enhancing efficiency in healthcare services.”

Zhou Wei, Founding Managing Partner at CCV, stated, “As early-stage investors, we are delighted to have accompanied SHUKUN throughout its growth journey. When investing in digital health projects, we adhere to three core principles. First, technological intervention can enhance the supply of high-quality services, creating a multiplier effect. Second, technological products should not only serve top-tier hospitals in first-tier cities but also provide substantial benefits to the vast number of long-tail hospitals and clinics. Third, the product itself must possess strong capabilities for large-scale commercialization. By choosing to develop AI solutions for cardiovascular and cerebrovascular imaging—a field with higher technical complexity—SHUKUN has differentiated its business model, allowing it to stand out amidst homogeneous competition.”

Yang Ruirong, Partner at Yuan Yi Capital, stated: “As the angel-round investor, we are delighted to have witnessed and accompanied SHUKUN on its journey from zero to one. SHUKUN’s successful practices serve as powerful testament to how digital technologies can enhance efficiency in the healthcare sector and expand the boundaries of physicians’ capabilities. We look forward to Mr. Mao and Anne leading the team to deliver greater value to more patients through digital technology, setting the industry standard and shaping the future with data-driven innovation.”

Zhou Xiang, Head of the Financial Advisory Division at China Renaissance, stated, “We have always firmly believed that digitalization and intelligence will bring unprecedented transformation and opportunities to the healthcare industry. However, these opportunities come with multiple challenges in underlying technologies, application scenarios, and business models. We are pleased to see SHUKUN, as an industry leader, achieve breakthrough explorations across various aspects. Currently, SHUKUN’s ‘Digital Human’ system is empowering an increasing number of upstream and downstream players in the industry and is gradually becoming a core infrastructure platform for the trend of intelligent healthcare in China. We look forward to SHUKUN continuing to lead the industry with the support of this round of financing, creating greater value for patients, society, and the nation.”

Ma Chun’e, CEO of SHUKUN, stated, “SHUKUN’s vision is to provide ubiquitous intelligent healthcare services. Healthcare is an industry driven by essential needs and one that requires patience and sustained effort; the path toward intelligence in this sector is fraught with challenges. Since our establishment in 2017, we have forged ahead through hardships, achieving breakthrough innovations in scientific research, product development, regulatory approvals, and commercialization. Looking back on the past three years, SHUKUN has remained true to its original aspiration: returning to the essence of clinical practice, creating tangible value, and addressing critical pain points and essential needs. We are deeply grateful to both new and existing investors for their long-term companionship and support. We look forward to working hand in hand with our shareholders and partners across the healthcare industry to truly leverage technology for the betterment of human health.”