Shanghai Shenqi Medical Secures Hundreds of Millions of RMB in Series C Funding Led by Hillhouse Ventures and LYFE Capital

VCBeat has learned that,Recently, Shanghai Shenqi Medical Technology Co., Ltd. (“Shenqi Medical”) announced the completion of its Series C financing round, raising hundreds of millions of RMB. The round was led by GL Ventures and LYFE Capital, with continued support from existing investors 3H Health Investment and Apricot Capital. Dianshi Capital served as the exclusive financial advisor.

In an exclusive interview, Dai Zhihao, Founder and CEO of Shenqi Medical, stated thatThe proceeds from this financing round will be primarily used for: 1. Further R&D and marketing of existing products; 2. Advancing the implementation of new projects, such as the R&D and clinical trials of valve-related products; 3. Expanding the depth and breadth of the company’s product portfolio through acquisitions.

Shenqi Medical was founded in 2014 and is dedicated toVascular Intervention, Structural Heart Disease, Heart Failure Managementa company dedicated to the research, development, and innovation of interventional medical devices. Over the past six years since its establishment, Shenqi Medical has completed the development of multiple interventional products, including: detachable fibered coil embolization systems, peripheral microcatheters, distal access guide catheters, drug-coated coronary balloon catheters, and left atrial appendage occluders. In addition, there are currently approximately 10 products under development.

Its two flagship core products have both achieved strong results.The independently developed drug-coated coronary balloon catheter received NMPA approval for market launch in December 2019, while another product, a left atrial appendage occluder, is currently in the clinical trial phase and is expected to be launched by the end of 2021.

Amid the surge in interventional therapy, the interventional device sector is heating up. With nearly one million percutaneous coronary intervention (PCI) procedures performed annually, the average number of stents implanted per coronary heart disease patient was 1.46 in 2018. Given the vast population of 290 million cardiovascular patients, this figure continues to grow rapidly.

As the concept of “intervention without implantation” gains favor among interventional specialists and patients, drug-coated balloons are increasingly taking center stage in interventional therapy. By reducing the need for permanent metallic implants, they offer a new therapeutic option for certain young patients and those with limitations on antiplatelet medication use.

Compared with conventional balloon angioplasty alone, stent implantation significantly reduces the rate of repeat revascularization. However, it also introduces risks of in-stent thrombosis and vasomotor dysfunction, particularly in patients with suboptimal stent deployment or delayed endothelial healing. Furthermore, while certain high-risk patients require prolonged dual antiplatelet therapy after stenting, balancing the risks of bleeding and ischemia leaves some patients in a dilemma.

Drug-coated balloons represent an innovation in the field of coronary ischemia-reperfusion therapy. Compared with plain balloon angioplasty, drug-coated balloons can uniformly deliver medication to the lesion site, achieving more effective inhibition of neointimal hyperplasia and enhanced anti-inflammatory effects. In contrast to stent implantation, drug-coated balloons leave no metallic structure within the vessel lumen, exert minimal impact on vascular endothelial vasomotor function, and require a shorter duration of dual antiplatelet therapy.

After recognizing the development opportunities for drug-coated balloons, Dai Zhihao, who has a professional medical background and over 20 years of experience in the cardiovascular field, designated drug-coated balloons as Shenqi Medical’s inaugural product. Through the efforts of him and his team, this drug-coated coronary balloon catheter, launched after five years of development, stands at the forefront of domestic technology. Shenqi Medical is also the second company, following Dalian Yinyi, to receive NMPA approval for its drug-coated balloon product.

From the product itself, this device utilizes a specialized coating technology that provides excellent density. Furthermore, it demonstrates superior drug-loading capacity with a very low drug loss rate. In addition, it exhibits strong adhesion to vascular endothelial cells, allowing it to remain at the lesion site for up to 28 days.

(Drug-Coated Coronary Balloon Catheter)

Currently, Shenqi Medical has established collaborations with more than ten renowned hospitals, including Shanghai Ruijin Hospital, Shanghai Zhongshan Hospital, and Beijing Anzhen Hospital. In addition, Shenqi Medical has entered into a channel partnership with MicroPort, a leading domestic medical device company, leveraging MicroPort’s distribution advantages to rapidly expand its product market presence.

Atrial fibrillation (AF) is a common arrhythmia, with clinical studies from multiple countries indicating an overall prevalence of approximately 1%. AF accounts for 15–20% of all stroke cases, amounting to roughly 120,000 cases annually. In AF-related strokes, 90% of thromboemboli originate from the left atrial appendage (LAA). According to data from the Chinese Medical Association, there are over 10 million patients with AF in China. The LAA occluder system can prevent thrombus formation within the LAA during AF, thereby reducing the risk of stroke-induced long-term disability or death due to thromboembolism, presenting broad market prospects.

Dai Zhihao expressed strong confidence in occluder devices, noting that Shenqi Medical’s independently developed left atrial appendage (LAA) occluder is currently undergoing clinical trials with highly favorable feedback. This product is poised to become Shenqi Medical’s “flagship product.”

（Left Atrial Appendage Occluder）

Leveraging its technological superiority and astute market positioning, Shenqi Medical has rapidly entered the interventional device sector and is poised to become a leading player in this field.

The team’s exceptional execution capability is the key to Shenqi’s development. Dai Zhihao introduced that Shenqi Medical currently employs over 80 staff members, including numerous professionals specializing in the research and development as well as production of interventional and implantable medical devices. The core team members have work experience at U.S. medical device companies and leading domestic medical device enterprises, bringing extensive expertise in corporate management, technological innovation, and product R&D.

Finally,Regarding the successful completion of this financing round, Dai Zhihao, Founder of Shenqi Medical, stated:“We are grateful for the capital market’s recognition of Shenqi, and we deeply appreciate our existing shareholders for their unwavering support. The past five years represent only the first step for Shenqi Medical. Looking ahead, Shenqi Medical will remain firmly focused on the development of high-value medical device consumables, researching and exploring more advanced technologies and products. We aspire to become a company with first-class competitiveness in the fields of vascular intervention, structural heart disease treatment, and heart failure management.”

Yi Nuoqing, Co-Chief Investment Officer of Hillhouse Capital and Head of Biopharmaceuticals and Medical Devices at GL Ventures, stated:“Biopharmaceuticals and medical devices have always been key focus areas for Hillhouse. Shenqi Medical is positioned as a platform company in the interventional sector, boasting profound technological expertise, a well-structured product portfolio, and a highly executable team. Hillhouse Ventures will provide support in terms of development strategy and industry resources. We look forward to working closely with Mr. Dai’s team and fellow investors over the long term, delivering high-quality, valuable products and services to clinical practice and patients through continuous innovation.”

Chen Gang, Partner at Jifeng Capital, believes:“Shenqi Medical boasts high-quality, high-tech products, a rapid and efficient R&D, registration, and industrialization system, as well as strong commercialization capabilities. The team members have extensive experience in the research, development, and sales of cardiovascular products. In the future, Jifeng Capital will support the company in international market development and the introduction of overseas advanced technical talent, helping to build an internationally leading platform-type company.”

Sheng Li, Partner at 3H Health Investment, stated:“The team at Shenqi Medical is exceptional, bringing extensive experience and strong execution capabilities. As one of the earliest investors in Shenqi Medical, we have partnered with Mr. Dai’s team to witness the company’s rapid development over the past few years. Furthermore, as professional investors specializing in the broader healthcare sector, we are delighted to participate in this round of financing, continuing to support the company’s growth and helping Shenqi become a leading platform enterprise in the field of innovative medical devices.”

Liu Wenyi, Founding Partner of Apricot Capital, believes:“High-end medical devices and consumables represent a key development direction in China’s healthcare sector. As a leader in the field of vascular intervention, Shenqi Medical has amassed extensive technical expertise through its team, delivering products with significant clinical efficacy and maintaining a leading position within the industry. Apricot Capital is optimistic about the industry segment in which Shenqi operates. As a key partner of Shenqi Medical, we are committed to supporting the company’s long-term development and growth. We firmly believe that Shenqi Medical’s progress will benefit a broader patient population.”

About GL Ventures

GL Ventures is the venture capital fund under Hillhouse Capital that focuses 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, Primarius Technologies, Peijia Medical, MicroPort CardioFlow, and Venus Medtech. We aim to partner with enterprises as “friends of time,” jointly driving innovation and development in the healthcare industry to benefit more patients.

About Jifeng Capital

LYFE Capital, established in 2015, is a specialized China-U.S. healthcare fund managing approximately $1.3 billion in assets. The fund is dedicated to investing in the Chinese and U.S. markets, with a focus on biopharmaceuticals, medical devices, and medical diagnostics. LYFE Capital works closely with its portfolio companies, providing not only financial support but also assistance in international business expansion, identifying overseas partners, and actively supporting market planning and team development to facilitate product approval and market access. Portfolio companies are regarded not merely as investment projects, but as long-term strategic partners.

About 3H Health Investment

3H Health Investment is a private equity fund dedicated to the healthcare sector. With a global perspective, it focuses on investing in innovative technologies within the medical field, driving their clinical translation and industrialization to save more lives while improving patients’ quality of life. Leveraging deep resources in clinical practice, industry, and policy, 3H Health Investment collaborates with partners to build great health technology enterprises.

About Apricot Capital

The name “Apricot” was chosen to signify the integration of resources across the broader health industry through 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.