Yingnuo Medical Completes Pre-A Financing Round to Accelerate Development of Comprehensive AI Solutions for Gastroenterology

VCBeat has learned that Xiamen Yingnuo Medical Technology Co., Ltd. (“Yingnuo Medical”) has announced the completion of its Pre-A financing round, led by Guohong Jiaxin Capital with participation from existing shareholder Deyi Capital. The proceeds from this round will be primarily used for product development, Phase III clinical trials, and market promotion.

Yingnuo Medical is a provider of AI-assisted diagnostic and therapeutic systems, dedicated to applying deep learning technology to computer-aided diagnosis of medical images in gastroenterology and endoscopy centers, with coverage extending across the entire workflow, multiple disease types, and all clinical scenarios. Currently, Yingnuo Medical’s core product, the AI-based Real-time Assistant Diagnostic System for Digestive Endoscopy, has been deployed in more than 60 Grade IIIA hospitals across over 20 provinces and municipalities in China.

According to research and analysis by the International Agency for Research on Cancer (IARC), an agency under the World Health Organization, there were approximately 4.8 million new cases of digestive system cancers globally in 2018, accounting for 26% of all new cancer cases worldwide; among these, there were approximately 3.4 million deaths, representing 35% of total cancer-related deaths. Approximately 63% of new cases and 65% of deaths occurred in Asia, with China alone accounting for 38% and 41%, respectively.

With changes in dietary patterns and lifestyle habits among the Chinese population, the incidence of gastrointestinal tumors in China has been rising year by year. The prognosis of malignant digestive system tumors is closely related to tumor staging. Taking gastric cancer as an example, the 5-year survival rate for early-stage gastric cancer treated with endoscopic therapy exceeds 90%. While approximately 85% of patients with advanced gastric cancer are eligible for surgical treatment, their 5-year survival rate remains below 30%. If diagnosis can be made at an early stage of cancer or even during the precancerous lesion phase, it will not only significantly increase the chances of cure but also substantially reduce the physical and psychological suffering as well as the financial burden on cancer patients.

According to data from the Annual Conference of the Chinese Society of Digestive Endoscopology, 390 million people in China should undergo endoscopic screening for early-stage cancer each year. However, in 2018, only 60 million people actually received endoscopic examinations nationwide. Driven by market education and promotional efforts, the number of individuals undergoing digestive endoscopy in China has been increasing by 10 to 15 million annually. Currently, the basic fee for a single endoscopic procedure generally exceeds RMB 200. Based on this figure, the total size of the endoscopic diagnosis market in 2018 was estimated at over RMB 12 billion, with an annual market growth increment exceeding RMB 2 billion. Considering the proportion of the population aged 40 and above nationwide, the total addressable market for digestive endoscopy in China is approximately RMB 52–56 billion.

Early-stage gastrointestinal tumors often lack distinct endoscopic features. Under significant work pressure, physicians are prone to visual fatigue. Coupled with outdated endoscopic equipment and non-standardized examination procedures, the miss rate for early-stage cancer and precancerous lesions during endoscopy is high, reaching up to 70%. Therefore, to improve the survival and cure rates of gastrointestinal tumors, a multi-faceted approach is required: from the patient’s perspective, it is essential to further raise awareness of disease risks and cultivate the habit of undergoing endoscopic screening for early detection; from the physician’s perspective, it is crucial to enhance operational and diagnostic proficiency, thereby improving diagnostic accuracy, particularly among physicians in primary care hospitals.

To address the critical challenges in China’s healthcare sector—namely, the high incidence of gastrointestinal tumors, low early detection rates, and poor overall survival rates—Hu Yanxing founded Yingnuo Medical, which is dedicated to developing world-class intelligent medical imaging computer-aided diagnosis systems.

Talent is the primary driver of corporate development. Hu Yanxing, founder of Yingnuo Medical, holds a Ph.D. in Computer Science from The Hong Kong Polytechnic University and has nearly a decade of experience in artificial intelligence research and development. Hu believes that the application of AI in endoscopy requires not only AI experts but also medical specialists in the field of endoscopy.

InnoMed Medical places particular emphasis on disciplinary diversity when building its core team. Its internal team comprises members from The Chinese University of Hong Kong, The Hong Kong Polytechnic University, Xiamen University, and West China Hospital of Sichuan University, while its external advisory network includes endoscopy experts from leading medical institutions both in China and abroad who provide professional support.

Since its establishment, Yinuo Medical has filed for and obtained multiple patents. The company was awarded the Excellence Award (First Prize) in the Startup Group of the 7th “China Innovation and Entrepreneurship Competition,” the 2018 “Maker China” Competition (Xiamen Division), and the 4th “Egret Star” Innovation and Entrepreneurship Competition; it also won the First Prize in the Corporate Group of the “2019 Cross-Strait Innovation and Entrepreneurship Invitational Tournament.”

In terms of product design, Yingnuo Medical has integrated its self-developed AI platform between the endoscopy processor and the endoscopy monitor, seamlessly embedding it into existing clinical workflows. This approach aligns closely with the daily operations of endoscopy suites without altering physicians’ routine practices.

Hu Yanxing introduced that Yinuo Medical’s AI-powered real-time auxiliary diagnostic system for digestive endoscopy features real-time performance, high accuracy, and applicability across multiple scenarios.

Real-time: Every frame of the signal during the endoscopy is captured and analyzed by the system, with the results displayed in real time on the original monitor of the endoscope. Hu Yanxing stated that this system has strong real-time processing capabilities, with a single-frame processing time of less than 17 milliseconds, ensuring visual continuity. The system can be directly placed on the endoscopic cart system without taking up space and is compatible with mainstream endoscope brands.

Accuracy: Trained on approximately one million real-world endoscopic images and validated against multiple clinical criteria and pathological findings, this system demonstrates leading performance in core technical indicators such as detection accuracy and real-time processing. “Currently, the system achieves an intestinal polyp detection accuracy of over 95%, a white-light detection rate for early esophageal cancer exceeding 93%, and a white-light detection rate for early gastric cancer surpassing 90%.”

Multi-Scenario Applications: Yinuo Medical’s products are not limited to early cancer screening; instead, leveraging early cancer detection as a breakthrough point, they extend to the examination of other gastrointestinal diseases. By harnessing artificial intelligence technology, these solutions provide comprehensive assistance across all scenarios of routine digestive endoscopy.

To date, Yingnuo Medical has partnered with more than 60 leading Grade IIIA hospitals across 22 provinces, supporting over 65,000 surgical procedures.

Success hinges on “focus.” Yinuo Medical is dedicated to the research, development, and service of AI-powered digestive endoscopy systems. By prioritizing an in-depth exploration of user scenarios within endoscopy centers, the company effectively integrates AI technology with clinical workflows in gastroenterology, thereby addressing physicians’ needs. Hu Yanxing stated that Yinuo Medical aims to complete the development of a comprehensive AI solution for gastroenterology within the next three to five years, thereby expanding its commercial value.

Guohong Jiaxin Capital served as the lead investor in Yingnuo’s latest funding round. Leveraging AI technology to empower traditional industries has long been a key focus for Guohong Jiaxin Capital. The firm stated that AI-based recognition technologies have already seen widespread application across various scenarios, and it holds a highly optimistic view of AI applications in endoscopic medical imaging. Given the high volume of endoscopic procedures and clearly defined clinical pain points, AI technology can effectively improve physicians’ diagnostic efficiency and accuracy, democratize medical image analysis capabilities, and reduce healthcare costs for patients. Due to the characteristics of endoscopic images—such as limited existing datasets, reliance on natural light, real-time processing requirements, and video-based formats—the technological barriers are higher, demanding greater innovation. In terms of product deployment, Yingnuo’s solutions have been implemented in dozens of top-tier Grade 3A hospitals in mainland China and at the Prince of Wales Hospital in Hong Kong, becoming part of the daily workflow in endoscopy departments and earning recognition from clinical specialists.

Yingnuo’s founding team brings together expertise and experience in both healthcare and technology. Founder Dr. Hu Yanxing, a graduate of The Hong Kong Polytechnic University, has demonstrated an impressive capacity for continuous self-improvement and learning. He has successfully translated R&D achievements into commercial applications within the Chinese market, while remaining true to the core mission of a healthcare entrepreneur. Guohong Jiaxin believes that, under Dr. Hu’s leadership, the company is poised for rapid growth, emerging as a leading player in its niche segment and making a positive impact on the entire endoscopic medical field.

As the angel investor in Yinuo Medical, Deyi Capital’s additional investment underscores its confidence in both the AI endoscopy sector and Yinuo Medical. Deyi Capital stated that its focus on the field of AI-based endoscopic screening, along with the product’s precise addressing of clinical pain points, were key reasons for its recognition of the Yinuo Medical team and the decision to partner with them. “Yinuo Medical’s innovative products and technological features align well with clinicians’ usage scenarios and work habits, enabling rapid deployment in hospitals. This confers a distinct advantage within the same competitive landscape.”

Deyi Capital stated that, in the future, it will grow alongside Yinuo Medical, providing comprehensive assistance and support in areas such as development strategy, talent reserves, market channels, and corporate management, to ensure proper control over key developmental factors and pacing, thereby achieving sound and healthy growth.

Guohong Jiaxin Capital was founded in late 2015 by the core founding team of CMGE Group, with its headquarters in Shenzhen. The firm focuses on investments in emerging technologies, digital creative culture, and mobile internet. In 2020, Guohong Jiaxin Capital partnered with Shenzhen Angel Fund of Funds, Futian District Guidance Fund, and CMGE Group to establish an early-stage fund dedicated to investing in strategic emerging industries and future industries, such as next-generation information technology. The fund focuses on new opportunities and pathways for young talents from Shenzhen, Hong Kong, and Macao to develop their careers in Shenzhen, with key investments in artificial intelligence, big data, cloud computing, Internet of Things (IoT), and mobile internet.

Deyi Capital focuses on the modern service industry, prioritizing investments in healthcare, information services, consumption upgrading, and other sectors. Its management team brings years of experience in investment, investment banking, and industrial operations, boasting extensive market resources and specialized post-investment service management within the industry. In the healthcare sector, Deyi Capital has invested in industry-leading and innovative enterprises such as Zeltis Pharma, Allist Pharmaceuticals, Yuanli Life Sciences, CanSino Biologics (Note: Correction based on common knowledge, but sticking to text: Kewang Medicine), Yifang Biopharma, Aikobio, Lipin Pharmaceutical, Manteia, and Feishuo Biology.