Changmu Valley Secures Tens of Millions in Series A Funding to Accelerate Orthopedic AI Solutions

VCBeat has learned that Beijing Longwood Valley MedTech Co., Ltd. (hereinafter referred to as “Longwood Valley”), an AI-driven orthopedics company, recently announced the completion of its tens-of-millions-of-RMB Series A financing round. The round was led by Qihang Investment under Zhongguancun Development Group, with participation from Legend Star, Ether Capital, and Wanhui Capital.Dr. Zhang Yiling, CEO of Longwood Valley, stated, “This round of financing will be used for the research and development of new products in orthopedic AI and surgical navigation, the application for NMPA clinical registration certificates, and product commercialization, as we continue to build a comprehensive solution for precision medicine across the entire orthopedic care pathway.”

Longwood Valley is a national high-tech enterprise specializing in artificial intelligence (AI) solutions for orthopedics. It provides end-to-end solutions for hospital orthopedic departments, including AI-assisted diagnosis, personalized surgical planning, surgical navigation, and postoperative assessment. Founded in 2017, Longwood Valley was established in the Longwood Medical Area, home to Harvard Medical School, and in Silicon Valley, where Stanford University is located. In 2018, the Longwood Valley team returned to China from the United States. Within less than a year and a half, the company completed three rounds of financing. Previously, Longwood Valley had secured seed funding led by FreeS Fund and Pre-A round funding led by Legend Star.

China’s orthopedics market is substantial. Taking artificial joint replacement surgery as an example, nearly 700,000 such procedures were performed in China in 2018, with the annual volume growing rapidly at a rate of 15% to 20%. “From this perspective, the market size of China’s orthopedics industry is at the hundred-billion-yuan level,” stated Dr. Zhang Yiling.Due to the high technical demands and steep learning curve associated with joint replacement surgery, young physicians and those at primary care institutions in China face significant barriers to performing these procedures effectively. Achieving precision and perfection in every operation is considerably challenging, making the need for intelligent and digital solutions in orthopedic surgery among Chinese orthopedists increasingly urgent.

Longwood Valley has independently developed the AI Joint system, the world’s first artificial intelligence-based surgical solution. This system comprises the AI HIP and AI KNEE modules, providing orthopedic surgeons with a comprehensive joint replacement solution that covers the entire perioperative workflow—preoperative, intraoperative, and postoperative phases. It significantly enhances the precision, standardization, and safety of orthopedic procedures, effectively addressing clinicians’ practical needs in daily practice.

During the preoperative preparation phase,Longwood Valley leverages artificial intelligence and deep learning technologies to integrate surgical simulation algorithms, image processing algorithms, and deep learning algorithms. Through computer-assisted methods, it enables three-dimensional preoperative planning for joint replacement surgeries, helping surgeons precisely determine the model, placement angle, and position of prosthetic joints prior to surgery. It also provides a comprehensive assessment of postoperative details such as limb length and offset, thereby enhancing surgical precision.

During the surgical implementation phase,Longwood Valley leverages 3D printing technology to personalize surgical navigation guides for each patient, ensuring the precise intraoperative execution of preoperative AI-assisted plans. This assists surgeons in accurately performing a series of procedures, including osteotomy, positioning, and prosthesis implantation, thereby enhancing the precision and safety of joint replacement surgeries, reducing operative time, and effectively lowering the incidence of postoperative complications.

Postoperative Phase,Longwood Valley provides a research platform to help physicians comprehensively evaluate surgical outcomes, conduct follow-up management, and accelerate patient recovery.

Dr. Zhang Yiling stated, “We hope the AI Joint system will become a ‘super tool’ for orthopedic surgeons. With advantages such as high precision, low cost, and low entry barriers, it can effectively lower the threshold for orthopedic surgeries and reduce the learning curve for physicians. This will enable its rapid and widespread adoption across the Chinese market, empowering orthopedic surgeons, particularly mid-career and early-career physicians as well as those practicing at primary care institutions.”

As a strategic partner of Johnson & Johnson MedTech, Longwood Valley has engaged in extensive in-depth collaborations with the company in the fields of digitalization and intelligence in orthopedics.In April 2019, Longwood Valley and Johnson & Johnson’s DePuy Synthes jointly developed a digital surgical platform for joint surgerySmart Joint; In September 2019, at the Johnson & Johnson Joint AIA Annual Meeting, Longwood Valley and Johnson & Johnson DePuy Synthes jointly releasedAI Joint 1.0System; In November 2019, at the Chinese Orthopaedic Association (COA) Annual Conference, Longwood Valley and Johnson & Johnson Medical officially signed a strategic cooperation agreement to jointly releaseAI Joint 2.0system. Meanwhile, Johnson & Johnson provided Longwood Valley with additional clinical channels, helping to accelerate the market adoption of its products.

In addition, through scientific research collaborations with fifty Grade A tertiary hospitals, including the PLA General Hospital (301 Hospital), China-Japan Friendship Hospital, Peking Union Medical College Hospital, Peking University Third Hospital, Yantaishan Hospital, Guizhou Provincial People's Hospital, Chongqing Xinqiao Hospital, Chongqing Southwest Hospital, the First Affiliated Hospital of Harbin Medical University, the Third Hospital of Hebei Province, and Fuzhou Second Hospital, Longwood Valley has translated the expertise of top joint specialists into machine learning language. This enables the AI Joint system to better align with the anatomical characteristics of the Chinese population and the surgical practices of Chinese physicians.

Since its establishment, Longwood Valley has been recognized as a National High-Tech Enterprise, Zhongguancun High-Tech Enterprise, Zhongguancun "Eagle" Talent Enterprise, Zhongguancun "Golden Seed" Enterprise, Zhongguancun Technology-Based Micro and Small Enterprise, one of the Top 50 Medical AI Enterprises in China, and one of the Global Times’ Top Ten Most Investable Enterprises. Longwood Valley currently holds 20 national invention patents and 31 software copyrights for deep learning-based joint replacement systems, among other technological achievements.

Nowadays, the intelligentization and digitalization of orthopedics have become an irresistible trend. Dr. Zhang Yiling stated, “Longwood Valley will continue to deepen its presence in the orthopedic field, optimize AI products and surgical navigation systems to make overall solutions more precise and intelligent, while advancing the application for and approval of clinical registration certificates. Beyond joint procedures, Longwood Valley will further expand into more specialized segments of orthopedics, such as”Spine, Trauma, and Bone TumorsWe hope to develop intelligent and digital orthopedic products that represent “Intelligent Manufacturing in China” and lead the world, making artificial intelligence a “super tool” for orthopedic surgeons, benefiting more Chinese patients, and ensuring that “no surgery is difficult.”

Wang Chunping, Founding Partner of Qihang InvestmentIt is pointed out that the deployment prospects of artificial intelligence in the vertical healthcare sector serve as the core basis for our strategic positioning. Orthopedics, chosen by Longwood Valley, is one of the largest, fastest-growing, and most commercially mature clinical specialties, as well as a field with the most objective diagnostic and treatment evaluation standards, which facilitates the validation and promotion of AI technologies. Its AI solutions begin with surgical planning and are implemented through surgical navigation; based on integrated clinical diagnosis and treatment scenarios, they are more conducive to achieving commercial deployment and closing the business loop. Within less than two years since its establishment, the company has basically completed the research and development of solutions for hip and knee arthroplasty, entered into a strategic partnership with Johnson & Johnson MedTech, and deployed its systems in nearly 50 large tertiary hospitals across China.Qihang Capital values the founding team’s top-tier orthopedic background and solid technical capabilities,I was even more impressed by the team's execution capabilities and rapid growth.We aim to continuously empower corporate development and help businesses grow into international industry leaders.

Wang Yi, Investment Director at Legend StarIt has been stated that if the surgical process is further segmented as a medical service product into “surgeon skill execution, surgical planning, and the product itself,” we observe that the iteration cycles for both surgeon skills and the products themselves are quite long. In contrast, surgical planning and implementation strategies have demonstrated strong pharmacoeconomic value in recent years, driven by advancements in AI and big data technologies. Under this framework, AI, computer vision, and navigation technologies can be leveraged to mass-produce standardized solutions for current surgical procedures. This enables surgeons to utilize planning protocols trained on complex cases and expert experience from top-tier hospitals, thereby making surgeries more precise, safer, and better tailored to individual patient conditions—an outcome we have long sought to achieve.

Meanwhile, the widespread adoption and successful application of any new medical technology depend on its health economic value proposition, adaptability to payment mechanisms, and opportunities emerging within the industry ecosystem. Through in-depth research into Longwood Valley and the orthopedics sector, we have found that orthopedics is already well-positioned to seize the opportunities presented by this structural transformation. MeanwhileThe execution capability, learning agility, and enterprising spirit of Dr. Zhang Yiling’s team at Longwood Valley have left a deep impression on us. We believe that Dr. Zhang is not only leading advancements in orthopedics but also spearheading the transformation of the AI-enabled surgery industry. By extending the application of AI from diagnostics to surgical treatment, his work has generated tangible clinical economic value and achieved widespread adoption, ultimately benefiting a broader patient population.

Zhou Jianming, President of Yitai InvestmentIt stated that AI is another revolutionary technology following the internet, and has always been a key focus of our attention and investment. Orthopedics is a high-quality sector in China that has just entered a phase of rapid development. The integration of AI with orthopedics will significantly enhance the efficiency and quality of orthopedic healthcare, address the pain points of orthopedic surgeons in China, and the company’s business model leads industry development, offering vast market potential.Dr. Zhang Yiling’s team boasts world-class expertise in orthopedic clinical practice and artificial intelligence, demonstrating a grounded yet progressive work ethic and a strong spirit of innovation. Their exceptional ability to integrate technological and sales resources further distinguishes them. We are optimistic about the development prospects of the Longwood Valley team and are committed to making follow-on investments.

Ms. Zhang Hanyan, Founder of Wanhui Capital and Chairman of Fengchuang Groupstated: “AI + healthcare is a key focus of our investment strategy. Leveraging new technologies to empower the healthcare sector and enhance its efficiency and effectiveness will become a major trend driving the industry’s substantial growth in the future. Since the inception of Longwood Valley, we have engaged in long-term tracking and incubation, holding strong confidence in the team’s technological frontier capabilities, execution strength in implementing practical business solutions, and resource integration abilities. We have participated in two consecutive rounds of investment. We believe that, with the overall improvement in diagnostic and treatment efficiency across the industry and the growing demand from hospitals in lower-tier markets, Longwood Valley’s product and technology solutions will enjoy very broad prospects.”

Qihang Investment is a high-tech enterprise equity investment platform initiated, meticulously built, and operated on a market-oriented basis by Zhongguancun Development Group. It primarily focuses on Beijing’s key supported high-end and cutting-edge industrial sectors, including biopharmaceuticals, next-generation information technology, new energy and advanced materials, and intelligent manufacturing. The assets under management of its funds total RMB 1.5 billion. Based in the Zhongguancun National Independent Innovation Demonstration Zone, Qihang Investment leverages the extensive government background of Zhongguancun Development Group and its comprehensive ecosystem for supporting innovation and entrepreneurship to provide robust value-added services to its portfolio companies. Notable investment successes by the team include BeiGene, InnoCare Pharma, Tinavi Medical Technologies, Allgens Medico-Pharmaceutical Technology, and Cygnus Bio.

Legend Stars was founded in 2008 and currently manages angel investment funds with a total scale of over RMB 2 billion, having invested in nearly 300 projects. As the early-stage investment and incubation arm of Legend Holdings, Legend Stars leverages more than three decades of entrepreneurial experience and resource accumulation from Legend to provide entrepreneurs with distinctive services combining angel investment and in-depth incubation.

Ethereal Investment, established in 2014, is an investment management firm specializing in early-stage private equity investments. Leveraging the extensive expertise and deep insights of its core management team in biopharmaceuticals, automotive, and finance sectors, the company focuses on investing in biopharmaceuticals and intelligent electric vehicles, providing robust comprehensive support and services to high-tech entrepreneurs.

Wanhui Capital, established in September 2017, primarily invests in early-stage projects leveraging AI and big data technologies across various application domains. Backed by the financial strength of its shareholder, Fengchuang Group, and predominantly utilizing its own capital, the firm has built a comprehensive investment ecosystem through direct investments and fund-of-funds strategies. Its key investment areas include AI+biopharmaceuticals, AI+big data, intelligent manufacturing, and AI+education. In terms of investment stages, it focuses on early-to-mid-stage projects.