RayBioMed Completes Tens of Millions RMB Series A Financing Led by Legend Capital and Healthcare Capital

VCBeat learned at the earliest opportunity,Reliable Med (Hangzhou) Medical Technology Co., Ltd. (hereinafter referred to as “Reliable Med”) has recently completed tens of millions of yuan in Series A financing.This round of financing was jointly invested by Legend Capital and Huagai Capital, with existing shareholder Chende Capital making an additional investment. Bairong Capital served as the exclusive financial advisor. It is reported that the funds raised by Reliable Med in this round will be primarily used to expand production capacity for its product pipeline and to prepare for the launch of upcoming products.

Currently,The U.S. clinical mass spectrometry testing services market is valued at approximately $9 billion annually, accounting for about 15% of the total clinical testing market share; by comparison, the potential market size of China’s clinical mass spectrometry testing market is expected to reach RMB 30 billion per year.Clinical mass spectrometry in China is experiencing robust growth, yet its market share remains below 1%, indicating substantial potential for future expansion. Clinical mass spectrometry has become one of the most promising avenues in the field of in vitro diagnostics and a new hotspot in laboratory medicine.

Common mass spectrometry techniques in the field of clinical diagnostics include liquid chromatography-tandem mass spectrometry (LC-MS/MS), gas chromatography-mass spectrometry (GC-MS), inductively coupled plasma-mass spectrometry (ICP-MS), and matrix-assisted laser desorption/ionization time-of-flight mass spectrometry (MALDI-TOF-MS).

Among these, the application areas of LC-MS/MS mainly include newborn screening for inherited metabolic disorders, therapeutic drug monitoring, vitamin testing, hormone testing, and tumor marker detection; the application areas of GC-MS mainly include detection of metabolites in urine and toxicology screening; the application areas of ICP-MS mainly include trace element analysis; and the application areas of MALDI-TOF-MS mainly include microbial identification and nucleic acid analysis.

Compared with the century-long history of mass spectrometry development abroad, China’s mass spectrometry technology started relatively late, particularly in the field of clinical mass spectrometry.Currently, the domestic mass spectrometry market is predominantly occupied by imported brands such as AB SCIEX, Waters, Agilent, and Thermo Fisher. Since 2000, driven by strong support from multiple national ministries and commissions, domestic research institutes and instrument companies have accelerated independent innovation. They have achieved significant breakthroughs in core mass spectrometry technologies, key components, complete system development, and industrialization, thereby initiating a wave of import substitution and greatly promoting the rapid development of China’s mass spectrometry industry.

Despite the high barriers associated with mass spectrometry technology, China’s clinical mass spectrometry industry has begun to overcome these technical hurdles from the downstream application and service sectors, following years of market education and technological accumulation. Currently, it is progressively advancing the localization of upstream industries, mirroring the development trajectories previously seen with enzyme-linked immunosorbent assay (ELISA) and chemiluminescence technologies.

On the one hand, from the perspective of domestic market demand,Hospitals and third-party testing laboratories are in urgent need of mass spectrometry platforms that feature a high degree of automation and intelligence, deliver robust quality, and offer cost-effectiveness.On the other hand, although there is still a certain gap between China’s mass spectrometry instrument industry and that of developed countries at this stage, from the perspective of the clinical medicine segment,Domestic mass spectrometry companies are fully capable of achieving leapfrog development by developing automated mass spectrometry “assembly lines” tailored to the characteristics of the healthcare industry.In China, the field of clinical mass spectrometry is a vast blue-ocean market worth billions of yuan, waiting to be tapped.

Zheng Yi, Founder of Reliable MedTell VCBeat that mass spectrometry instruments previously belonged to the category of scientific instruments and have only been applied in the medical field in the past decade. Clinical mass spectrometry differs significantly from mass spectrometry used in other fields such as environmental protection and food safety, including aspects like automated sample pretreatment, increased detection throughput, anti-contamination properties of the mass spectrometer's ion optical system, kit design, and software intelligence/spectral library specificity. To meet the special needs of clinical customers, customized development is required for various stages, including medical sample processing, instrument design, software operating systems, application methodologies, and kit research and development.

Reliable Med, headquartered in Hangzhou, Zhejiang Province, is an IVD company dedicated to the research and development, manufacturing, and sales of clinical mass spectrometry instruments and supporting reagent kits. It aims to provide clinical medical customers with a one-stop comprehensive solution encompassing mass spectrometry instruments, automated ancillary equipment, in vitro diagnostic reagent kits, applied methodologies, and services, thereby filling the industrial gap in high-end clinical mass spectrometry within China’s IVD sector.

As a platform company in the field of clinical mass spectrometry, Reliable Med boasts a comprehensive portfolio of mass spectrometry products, includingInductively Coupled Plasma Mass Spectrometry (ICP-MS), Gas Chromatography-Mass Spectrometry (GC-MS), and Liquid Chromatography-Tandem Mass Spectrometry (LC-MS/MS): three major mass spectrometry platforms, along with supporting automated sample preparation equipment and assay kits.

Left: ICP-MS Inspector SQ60; Right: Autosampler RLP-ASX560

Multiple products are under development simultaneously, with the majority already commercialized. What core corporate strengths have fueled Reliable Med’s rapid growth and attracted joint follow-on investments from several prominent venture capital firms?

Regarding how team members can leverage their respective strengths to empower the company’s development, founder Zheng Yi addressed VCBeat from two perspectives.

First, build a highly competitive R&D team: Reliable Med’s R&D team consists of seasoned professionals with years of hands-on experience in the scientific and medical instrument sectors. The entire team possesses extensive expertise in mass spectrometry technology, as well as in the research, development, and commercialization of IVD instruments and reagent kits, enablingThe Company is capable of efficiently establishing a full-industry-chain commercial closed loop for clinical mass spectrometry instruments and in vitro diagnostic reagents, encompassing R&D, manufacturing, delivery, regulatory approval, and after-sales services.

Secondly, establish a modern service system characterized by a “strong front-end and robust back-end.” Since its inception, Reliable Med has attracted numerous sales, marketing, and application service professionals with extensive experience from leading companies in the IVD sector. This enables them to fully leverage their accumulated market and channel resources within their areas of expertise, focus on core customers, deliver effective clinical services, and accelerate the commercialization and implementation of the company’s products.

Zhou Quan, Managing Director at Legend Capital, stated, “Mass spectrometry testing offers advantages such as high sensitivity and multiplexing capability, and it is widely used in clinical diagnostics overseas, particularly in the United States. In China, however, it is still in the introduction phase. With the joint efforts of stakeholders across various sectors, we believe it will evolve into an important niche within clinical diagnostics. There are certain differences between clinical diagnostics in China and the U.S., with a strong domestic demand for comprehensive in-hospital testing solutions. We consider mass spectrometers to be the core component of the testing workflow, characterized by significant technical and manufacturing barriers as well as a scarcity of talent. Moreover, clinical application scenarios and sample conditions differ from those in the traditional analytical instrumentation industry. Therefore, startups focused on clinical mass spectrometry testing have opportunities for independent development. The Reliable Med team possesses extensive experience spanning from R&D to mass production. Within just one year since its establishment, the company has rapidly developed multiple mass spectrometry testing products that meet clinical needs. We are delighted to collaborate with the team and look forward to working together to contribute to the advancement of clinical mass spectrometry in China.”

Chen Bo, Vice President of Huagai Capital’s Healthcare Fund, stated, “In recent years, several trends in the field of in vitro diagnostics (IVD) have drawn our attention. First is the ongoing translation of technologies from life sciences to clinical diagnostic applications; second is the increasing adoption of domestic IVD equipment in hospitals; and third is the trend toward import substitution. As a direct analytical methodology for substance detection, mass spectrometry has been developed in U.S. clinical laboratories for decades and constitutes an important component of IVD, whereas its clinical application in China is still in its early stages. Current pain points in China’s clinical mass spectrometry sector include reliance on imported upstream instruments, which are expensive and have not been specifically adapted or developed for clinical scenarios. Reliable Med currently represents a rare, complete team in China with independent R&D and manufacturing capabilities for upstream clinical mass spectrometry instruments. With substantial technical barriers, alignment with industry trends, and solutions to key industry pain points, Reliable Med has emerged as a leading enterprise in China’s clinical mass spectrometry sector.”

Chen Ji, Vice President of Chende Capital, stated: "Chende Capital is firmly bullish on the application of mass spectrometry technology in clinical settings. The team at Reliable Med, represented by Mr. Zheng, is a rare domestic team identified by Chende Capital that possesses both the experience and capability in the development and industrialization of mass spectrometry instruments. In the year following our initial investment, the company has extensively recruited talent across multiple fields, including in vitro diagnostics (IVD). Its product development has been closely aligned with clinical needs, and its progress has been impressive. Chende Capital is confident that Reliable Med will provide comprehensive and reliable mass spectrometry solutions for clinicians and patients, promote the widespread adoption of mass spectrometry technology in clinical practice, and ultimately become a benchmark enterprise in the field of clinical mass spectrometry and the broader IVD industry."

Legend Capital is an independent professional investment firm under Legend Holdings. Established in April 2001, it was renamed from Legend Investment to Legend Capital in 2012. Its core business focuses on venture capital for start-ups and growth capital for expansion-stage companies. The total assets under management in its USD and RMB funds exceed RMB 50 billion, with a strategic emphasis on innovation and growth opportunities in China. As of 2020, Legend Capital had invested in more than 500 portfolio companies, among which nearly 80 have successfully listed or been quoted on domestic or overseas stock exchanges, and over 60 have achieved exits through mergers and acquisitions.

Huagai Capital, with the vision of “becoming the most trusted investment partner for entrepreneurs and investors,” focuses on private equity investments in three major sectors: healthcare, TMT (Technology, Media, and Telecom), and culture and education. The firm has managed over RMB 15 billion in funds, with 12 portfolio companies successfully listed. Its healthcare fund concentrates on biopharmaceuticals, medical devices, and healthcare services, prioritizing industry M&A consolidation within the healthcare sector as well as investment opportunities in high-growth, high-tech enterprises at early to mid-stages.

Chende Capital is an investment firm focused on the life sciences and medical technology sectors, managing multiple USD and RMB funds with a total asset under management (AUM) exceeding RMB 4 billion. Managed and operated by a professional team with extensive experience in the healthcare industry, Chende Capital has completed investments in over 50 projects and achieved successful exits from multiple portfolio companies. Leveraging its broad industrial resources in the global and Chinese healthcare sectors, along with years of deep engagement, the firm is positioned to promptly identify emerging international technological trends and seize investment opportunities in China, thereby influencing the future direction of the Chinese healthcare market. Chende Capital is committed to building top-tier enterprises in the healthcare sector and delivering optimal returns to its investors.

Bairong Capital is a research-driven financial advisory firm focused on the healthcare and medical sector. It aims to help medical enterprises achieve rapid growth through its extensive transaction experience, while providing investment institutions with insights into valuable investment opportunities through rigorous and in-depth research. Bairong Capital’s areas of focus cover multiple healthcare sub-sectors, including healthcare services, medical devices and consumables, in vitro diagnostics (IVD) and precision medicine, biopharmaceuticals, and healthcare informatics. The core team at Bairong Capital consists of professionals from top-tier consulting firms and renowned investment banks.