Zhejiang Nurotron Announces Strategic Financing Round with Hillhouse Capital and Superstring Fund as New Shareholders, Files IPO Prospectus

VCBeat (WeChat ID: vcbeat) has learned that Zhejiang Nurotron Biotechnology Co., Ltd. (“Zhejiang Nurotron”) recently announced the completion of a round of strategic financing, introducing Hillhouse Ventures and Hyperstring Fund as new shareholders of the company.

Zhejiang Nurotron Biotechnology Co., Ltd. (Nurotron) was established in 2006 as a high-tech enterprise dedicated to becoming a world-leading supplier of neuroelectronic medical devices. The company’s headquarters and manufacturing base are located in Hangzhou, China, while its R&D center is situated in California, USA. Since its inception, Nurotron has identified neuroelectronics as its core field of application and set forth its corporate mission: “To help the deaf hear, the blind see, and the paralyzed stand.”

Zhejiang Nurotron’s core offerings are high-end neuroelectronic stimulation products. The company has established a three-pronged R&D pipeline, with auditory restoration products as the cornerstone, complemented by visual restoration products and neuromodulation stimulators. Specifically, the auditory restoration portfolio is anchored by cochlear implants, supplemented by auditory brainstem implants and bone-conduction hearing aids; the visual restoration segment is primarily focused on retinal prostheses; and the indications for neuromodulation stimulators are mainly concentrated in the treatment of urinary incontinence and Parkinson’s disease.

In 2011, Nurotron Biotechnology obtained the registration certificates for both the speech processor and the implant of its cochlear implant system, thereby acquiring the qualifications and capabilities to manufacture and sell cochlear implant products. In 2013, it secured the product registration certificate for cochlear implants intended for children under six years of age, becoming the first—and to date, the only—Chinese enterprise to achieve this milestone. To date, Nurotron Biotechnology is the fourth company globally and the first in China to commercially launch cochlear implant products on a large scale. With this achievement, China has become the fourth country in the world, following the United States, Australia, and Austria, to possess complete cochlear implant technology.

Currently, Zhejiang Nurotron has three commercially available products: the first-generation cochlear implant and the first- and second-generation cochlear speech processors. There are 13 products in development that have completed prototype stages (11 of which are active implantable devices), including the second- and third-generation cochlear implants, the third- and fourth-generation cochlear speech processors, auditory brainstem implants, bone-conduction hearing aids, retinal implants with video signal processors, sacral nerve stimulation systems, and deep brain stimulation systems.

In terms of digital technology application, Zhejiang Nurotron recently partnered with Tencent’s Multimedia Lab to introduce the new generation of real-time audio technology, “Tencent Tianlai.” After six months of technical validation, both parties continuously explored effective solutions within the hardware and software limitations of cochlear implants, ultimately establishing a joint solution architecture based on the “Mobile Companion + Cochlear Implant” model.

According to test data from Zhejiang Nurotron, the integration of Tianlai technology with cochlear implants has significantly enhanced speech recognition performance, achieving an average recognition rate of 96.28%. Specifically, the speech recognition rate in noisy conditions reached 93.38%, and the sound recognition rate in environmental noise was 94.24%. Furthermore, embedding Tianlai technology into mobile applications improved the signal-to-noise ratio (SNR) of dual-microphone array noise cancellation by 20 dB and increased the Mean Opinion Score (MOS) by 0.3–0.5, demonstrating a positive impact on improving the auditory experience for individuals with hearing impairments.

Zhejiang Nurotron has successively received the Second Prize of the National Science and Technology Progress Award from the State Council, First Place in the Biomedical Industry Finals of the 4th China Innovation and Entrepreneurship Competition organized by national ministries and commissions including the Ministry of Science and Technology, the Ministry of Finance, and the Ministry of Education, as well as the First Prize of the Medical Achievement Award from the General Armaments Department of the People's Liberation Army. The company also hosts an Academician Workstation, the Zhejiang Provincial Key Laboratory of Core Technologies for Neuroelectronics and Brain-Computer Interfaces, and a Zhejiang Provincial High-Tech Enterprise Research and Development Center. As the Chinese company with the most comprehensive business scope in the field of neuroelectrical stimulation, Zhejiang Nurotron possesses strong R&D capabilities, advanced production process control technologies, and top-tier management talent, and is committed to contributing to continuous breakthroughs in China’s neuroelectrical stimulation sector.

Li Fangping, Chairman of Zhejiang Nurotron Biotechnology Co., Ltd., stated, “We welcome the investment from Hillhouse Venture Capital and Superstring Fund in Zhejiang Nurotron. Currently, the company is in a period of rapid development. We will closely align with our overarching mission of ‘enabling the deaf to hear, the blind to see, and the paralyzed to stand,’ seize significant opportunities for fast-paced growth, attract top scientific and research talent in the neuroelectronic stimulation industry, accelerate the advancement of projects already under R&D and production, and identify a portfolio of neuroelectronic stimulation products with broad market potential and mature technologies. Our goal is to become a global leader in the neuroelectronic stimulation industry and better serve human health.”

Yi Nuoqing, Co-Chief Investment Officer at Hillhouse Capital and Head of Biopharmaceuticals and Medical Devices at Hillhouse Ventures, stated: “Since its inception, Zhejiang Nurotron Biotechnology has been dedicated to the research, development, and manufacturing of neuroelectronic stimulation products. It launched China’s first domestically produced cochlear implant, enabling many hearing-impaired individuals who could not afford imported devices to regain their hearing and return to the world of sound. This is particularly significant for newborns with deafness; after receiving a cochlear implant, they can learn to speak, attend school normally, and pursue regular careers as adults, thereby benefiting both their families and society as a whole. Building on its robust technological foundation in cochlear implants, Zhejiang Nurotron has continuously developed additional neuroelectronic stimulation products, including artificial vision systems, sacral nerve stimulation systems, and deep brain stimulators, to aid the rehabilitation of more patients with neurological disorders. We look forward to a long-term partnership with Zhejiang Nurotron, continuously supporting its R&D efforts and product promotion to benefit more patients and families both in China and abroad.”

Hillhouse Ventures is the venture capital fund under Hillhouse Capital, focusing on early-stage innovative companies. It primarily invests in four key sectors: biopharmaceuticals and medical devices, software services and original technological innovations, consumer internet and technology, and emerging consumer brands and services. Biopharmaceuticals and medical devices have long been a core investment focus for Hillhouse. Over the past decade, Hillhouse has invested in more than 160 outstanding pharmaceutical and medical device companies, including BeiGene, Innovent Biologics, Junshi Biosciences, I-Mab, Pharmaron, Nanomicro Technology, Medcaptain Medical Technology, PINS Medical, PrimeCRO, Peijia Medical, MicroPort CardioFlow, Venus Medtech, Yisi Medical, Shenqi Medical, Bomai Medical, Antengene, Dadi Group, Huamai Tech, MicroPort CRM, Demede Medical, Beikon Medical, Danax Bio, Keya Robotics, Taimei Medical, and Clover Biopharmaceuticals. We aim to partner with enterprises as “friends of time,” jointly driving innovation and development in the healthcare sector to benefit more patients.

Superstring Fund is a pharmaceutical investment firm headquartered in New York. Superstring conducts in-depth research into niche sectors such as biotechnology and healthcare, capitalizes on structural industry opportunities, and makes long-term investments in global pharmaceutical and healthcare enterprises.