Forerunner Medical Secures Hundreds of Millions in Series B Funding to Become a Multi-Application Platform MedTech Company

On September 3, 2020, VCBeat learned that,Forerunner Medical, a medical device technology company specializing in the R&D and manufacturing of minimally invasive treatment products, announced the completion of its Series B financing round amounting to hundreds of millions of RMB. The round was led by a fund under CICC Capital, with participation from Cenova Capital, Apricot Capital, Dalton Venture, and China Renaissance.. The funds raised in this round will be primarily used for the development of the company's products under research, as well as for market promotion and preparations for commercialization.

Forerunner Medical, established in 2009 and located in the Medical Device Base of the East Zone of Zhangjiang Science City in Shanghai, is a high-tech enterprise in Shanghai primarily engaged in the research, development, and production of minimally invasive treatment products. The company boasts a seasoned management and technical R&D team. Its founder, Qin Jie, is a successful inventor and serial entrepreneur in the medical device industry, who previously founded and served as Chairman of CareRay, the leading enterprise in China’s minimally invasive spinal instrumentation sector. Since its establishment, Forerunner Medical has completed Series A financing from Sequoia Capital China and Yucheng Capital, as well as Series A+ financing from Medtronic.

Forerunner Medical's plasma ablation technology is primarily applied in sports medicine, minimally invasive spine surgery, and otolaryngology.Plasma ablation technology is a newly developed ablation technique on the international stage. Its low-temperature characteristics provide significant advantages in applications within orthopedics, spine surgery, and otolaryngology, making it the gold standard for minimally invasive procedures in sports medicine. Building on this core technology, Forerunner Medical has also established a comprehensive portfolio across other product lines in the field of sports medicine.

In 2016, Forerunner Medical acquired Mind Medical, a pioneer in radiofrequency ablation for oncological interventional therapy in China, as a wholly-owned subsidiary. Since then, Forerunner Medical has possessed two core technologies—plasma ablation and radiofrequency ablation—becoming the leader in high-value radiofrequency medical devices in China.

Radiofrequency ablation is the most widely used technology in the field of minimally invasive surgery. After years of effort, domestically produced ablation devices have become increasingly mature in areas such as interventional oncology, gradually replacing imported products and bringing significant benefits to cancer patients in China.

Leveraging its two major technology platforms, Forerunner Medical has established a deep presence in the industry, forming comprehensive technical solutions and sales platforms in fields such as sports medicine, spine, ear-nose-throat (ENT), and oncology. Its diverse product portfolio has surpassed the standards of peer medical device R&D companies at similar stages. All products are independently developed with technology reaching international top-tier levels. While developing the domestic market, Forerunner Medical has also entered into a strategic partnership with Terumo, a global medical device giant, in Europe.

Ablation devices and consumables constitute a high-barrier, high-value-added industry characterized by multidisciplinary integration. Multinational medical device giants, such as Smith & Nephew and Medtronic, have long dominated the Chinese market in this sector. However, it is crucial to recognize that the research and development (R&D) of medical devices cannot be separated from clinical experience. In response to the market monopoly held by foreign enterprises, Chinese medical device companies are prioritizing the enhancement of their R&D capabilities while fostering close collaborations with physicians at leading domestic hospitals. By leveraging local clinical treatment experience, these companies aim to develop innovative medical device products that are targeted and better aligned with the clinical needs in China, which has become the focal point of current industry development.

As an emerging market, China faces concurrent demands for the popularization and upgrading of medical device products. Driven by the implementation of tiered diagnosis and treatment policies and medical consortium initiatives, a key focus of Forerunner Medical’s market exploration is to leverage leading experts to extend their influence to primary healthcare institutions. This strategy aims to achieve market education and penetrate lower-tier markets, thereby enabling more patients to benefit from the latest medical technologies and treatments.

Regarding this round of financing, Mr. Qin Jie, Founder and Chairman of Forerunner Medical, stated:

“Forerunner Medical will continue to dedicate itself to the research and development of independently innovative products, constantly developing high-value minimally invasive therapeutic products to provide better medical products and technologies for healthcare professionals and patients, making every effort to contribute to the healthcare industry. Meanwhile, the company will further enhance the visibility and influence of its products across various fields. With the rapid advancement of medical technology in China and national policy support encouraging the development of domestic innovative medical device enterprises, we expect the company to expand beyond its sports medicine product portfolio to become a platform-based medical device company serving multiple clinical applications, providing more comprehensive solutions for clinical treatment and better benefiting patients nationwide.”

“As a strong supporter behind medical entrepreneurs, CICC Capital focuses on investing in leading medical technology innovation enterprises. With the development of the national economy, improvements in healthcare standards, and support from national policies, there is a rapidly growing demand among hospitals in China for upgrading high-end medical devices and substituting imported products with domestic alternatives, demonstrating significant market potential. Forerunner Medical holds multiple internationally leading core patented technologies, and its core management team rivals international standards, boasting extensive industry development experience and robust product innovation capabilities. CICC Capital hopes to continue leveraging its understanding of cutting-edge medical technologies and its global resource network to assist Forerunner Medical in discovering and introducing innovative medical technologies and expanding into mainstream markets, with the aim of benefiting more patients at an earlier stage.”

CICC Capital is a wholly-owned private equity investment management subsidiary of China International Capital Corporation Limited (“CICC”). As CICC’s sole private equity fund business platform, it centrally manages CICC’s domestic and overseas private equity fund businesses, undertaking functions such as formulating private equity investment development strategies, promoting business growth, allocating resources, and managing risk control. By the end of 2019, CICC Capital had total assets under management exceeding RMB 330 billion and employed a professional investment management team of approximately 300 people. CICC Capital, along with its sub-platforms including CICC Qiyuan, CICC Jiacheng, CICC Zhide, the Overseas Fund of Funds, and CICC Jiazi, manages numerous funds, making it one of China’s leading private equity fund management platforms.

Cenova Capital was founded by Dr. Wu Jun in 2010 and is one of the earliest professional investment funds in China dedicated to the healthcare and life sciences sectors, committed to promoting the transformation, upgrading, and innovation of China’s medical industry. Since its inception, Cenova Capital has garnered recognition and acclaim from portfolio companies, industry leaders, multinational industrial giants, and peers in the investment community. Currently, Cenova Capital manages five healthcare-focused funds and has invested in more than 50 companies in the healthcare and life sciences fields. The fund’s limited partners include renowned domestic and international institutional investors, such as Asian sovereign wealth funds, government agencies, domestic and foreign insurance and financial institutions, and multinational corporations.

The name “Apricot” was chosen to signify the integration of resources across the broader healthcare industry through the power of capital, thereby promoting industry development and benefiting humanity. Apricot Capital remains committed to fostering innovation and growth among Chinese enterprises. Leveraging its investment team’s extensive industry experience and global resource network, the firm spares no effort in helping entrepreneurs realize their startup dreams.

Dalton Venture focuses on early-stage investments and industrial M&A in the healthcare sector, with investment areas covering medical devices, healthcare services, biopharmaceuticals, and healthcare informatics. The core team at Dalton Venture comes from the healthcare industry, bringing extensive experience in corporate operations management, investment, and mergers and acquisitions. They have both entrepreneurial experience in incubating early-stage companies and experience managing listed companies with a market capitalization of tens of billions. In the field of medical innovation technology, Dalton Venture has made significant strides. The investment team at Dalton Venture is highly stable and has built a robust investment ecosystem. Leveraging deep industry experience and resources, they provide strong post-investment support to create high-value returns for their partners.

China Renaissance Holdings is a leading financial institution in China serving the new economy. The Company’s businesses include private placement financing, mergers and acquisitions, securities underwriting and issuance, securities research, securities sales and trading, private equity investment, broker-dealer asset management, and other services. It is committed to providing one-stop financial services spanning mainland China, Hong Kong, China, and the United States to entrepreneurs and investors in China’s new economy sector. China Renaissance has offices in Beijing, Shanghai, Hong Kong, and New York, with over 600 employees. As of June 30, 2020, China Renaissance Holdings had successfully assisted clients in completing more than 980 transactions, including initial public offerings, mergers and acquisitions, and private financing, with a total transaction value exceeding US$146 billion. The assets under management of its private equity funds reached approximately RMB 39 billion. Huajing Securities, a subsidiary of China Renaissance Holdings, was among the first joint-venture securities companies established under the CEPA framework. Since its inception in late 2016, Huajing Securities has systematically conducted various businesses, including investment banking, fixed income, asset management, wealth management, securities brokerage, and securities research.