Tugo Medical Secures RMB 50 Million Series A Funding to Lead 4K Minimally Invasive Surgical Imaging and Break Foreign Monopoly

VCBeat (WeChat ID: vcbeat) has learned that Nanjing TUGE Healthcare Co., Ltd. (“TUGE”) recently announced the completion of its RMB 50 million Series A financing round. The round was led by Shanghai Alliance Investment Ltd., with participation from Nanjing Innovation Investment Group and Nanjing Qilin Industrial Investment, while existing shareholder New Basin Venture Capital continued to invest. The proceeds will be primarily used for product line expansion and market promotion.

TUGE is a technology-driven enterprise focused on innovation in the field of minimally invasive surgery. Its main products include 4K endoscopy systems, digital integrated operating room systems, and medical display products. Specializing in image processing, TUGE leverages its world-class R&D team to independently develop products tailored to clinical needs, providing ultra-high-definition, high-fidelity imaging and comprehensive in-depth solutions for minimally invasive procedures.

TUGE, established in February 2018, has developed the AIENDO-4K Ultra-High-Definition Endoscopy System as its flagship product. This system is the first domestically developed 4K ultra-high-definition endoscopy system in China to fully comply with the new national standards for endoscopes implemented in 2019. To date, more than 60 patents related to this product series have been filed. At its inception, TUGE secured tens of millions of RMB in financing from three major investors: CAS Star, the CAS Technology Transfer Fund, and New Basin Capital.

Targeting the two scenarios of minimally invasive surgery and consultation-based teaching, TUGE offers two product series: the 4K Ultra-High-Definition Endoscopy System and the TurbOR Integrated Operating Room. Centered on image processing algorithms and integrating hardware, logic, and embedded software design, these solutions provide comprehensive and professional offerings for medical imaging systems. They enhance the precision of minimally invasive procedures, improve diagnostic and treatment efficiency, and supply core equipment to facilitate the widespread adoption of minimally invasive surgery.

Currently,TUGE’s AIENDO-4K Endoscopy System, Medical Endoscopic Cold Light Source, and 4K Ultra-HD Medical Monitor, all approved for market launch, are independently developed in-house with 100% proprietary intellectual property rights. TUGE’s domestically produced 4K endoscopic imaging system received one of the first NMPA registration certificates for 4K endoscopy systems in China. It is also the first fully independently developed 4K endoscopic imaging system in China and the first such product to be procured by hospitals, breaking the long-standing technological monopoly held by foreign brands in this field.

Furthermore, TUGE has launched its 4K surgical teaching products. By integrating real-time encoding modules and 5G modules, it provides 4K ultra-high-definition, fast, and stable live streaming, teaching, recording, and sharing services for minimally invasive surgeries, offering hospitals an ideal solution for minimally invasive surgical education.

Mr. Wang Yangang, Chairman of TUGE, stated, “We are deeply honored to have earned the trust and support of renowned investment institutions and all existing shareholders. As an innovative enterprise in China’s high-end medical device sector, TUGE is committed to advancing the localization of medical devices and fostering the rise of domestic brands through continuous innovation, thereby delivering the highest-quality products and services to clinicians and patients alike.”

Mr. Liu Yujia of Shanghai Alliance Investment Ltd., the lead investor in this round, stated, “TUGE boasts an internationally top-tier endoscopy team. Its extensive industry experience and robust R&D capabilities have enabled the team to achieve the first fully independently developed 4K endoscopy system in China, which has initially gained market recognition. For a long time, domestically produced endoscopes have held a very low market share. Based on Shanghai Alliance’s past industrial investment experience, closely aligning with market demands while persisting in independent R&D and innovation is the only way to reverse this situation. The team’s strength in hard technology and its original commitment to independent R&D are why we are optimistic about TUGE and have chosen to partner with them. We hope that our industrial resources and experience can help TUGE accelerate its development and become a leading enterprise in the high-end endoscopy field in China.”

According to reports, in the second half of 2020, TUGE will expand its existing product line by successively launching products such as a three-chip AI endoscopic camera system, a dual-chip endoscopic fluorescence camera system, and medical endoscopic fluorescence light sources, while also initiating R&D for an 8K camera control unit. Furthermore, building on its portfolio of 3D endoscopes, 4K medical video recording and broadcasting equipment, full-link 4K integrated operating room solutions, and related components, TUGE will provide in-depth solutions tailored for minimally invasive surgery.

This financing serves as a significant catalyst for TUGE’s transition from a hard-tech company to the forefront of the market.Focusing on the minimally invasive and precision medicine markets, TUGE is committed to becoming a leader in 4K imaging for minimally invasive surgery, truly providing hospitals with superior products.“As an innovative enterprise in the field of high-end medical devices in China, TUGE will always adhere to its corporate values of ‘Focusing on Imaging, Pursuing Knowledge through Investigation, Creating with Heart, and Serving the World,’ and continue to strive for the localization of medical devices and the innovative rise of national brands,” said Wang Yangang, Chairman of TUGE.

Shanghai Alliance Investment Ltd.Established in 1994, Shanghai Alliance Investment Ltd. is a wholly state-owned company approved by the Shanghai Municipal People’s Government. Serving national strategies and promoting scientific and technological innovation, the company adheres to its core strategy of integrating science and technology with economic development. With equity investment as its core business, it focuses on key technologies and critical bottlenecks, optimizing the flow of state-owned capital. Its primary areas of focus include information technology, life and health, energy and intelligent manufacturing, and modern services, with an external investment scale exceeding RMB 10 billion. Invested companies include Huahong Grace, Hehui Optoelectronics, Shanghai Zhaoxin Semiconductor, Bank of Shanghai, Liantai Metropolitan Life Insurance, China Eastern Airlines, Force Century, BesTV, Shanghai Hanxun Communications, Hua Medicine, United Imaging Healthcare, and Suntase Pharma.

Nanjing Innovation Investment Group, with a registered capital of RMB 5 billion, was jointly established in May 2018 by Nanjing Zijin Investment Group, Xin’gong Group, Urban Construction Group, and Southeast Group. The Group has integrated and aggregated municipal-level resources, funds, and platforms focused on technological innovation and industrial development. It currently serves as the entrusted manager for the Nanjing Emerging Industries Development Fund, the Nanjing Municipal Technological Innovation Fund, and government guidance funds, with a total scale approaching RMB 20 billion.

Nanjing Qilin Industrial Investment Co., Ltd. is affiliated with the Nanjing Qilin Science and Technology Innovation Park, a municipal-level park directly under the Nanjing Municipal Government. The company is primarily responsible for operating the park’s fund of funds, establishing guidance funds, conducting technology innovation investments, facilitating capital-driven investment promotion, and managing equity interests. The scale of equity investment funds in which it has participated, either directly or indirectly, amounts to approximately RMB 3 billion. It focuses on providing investment and financing services centered on the park’s leading industries, such as artificial intelligence and information technology.