Qihao Medical Secures Tens of Millions in Pre-A Funding Led by Tongrun Keetou to Advance ENT Medical Device Portfolio

VCBeat (WeChat ID: vcbeat) has learned that Jiangsu Qihao Medical Technology Co., Ltd. (hereinafter referred to as “Qihao Medical” or “BREATH MEDICAL”) announced the completion of its Pre-A financing round, raising tens of millions of yuan. Investors include Beijing Qingke Tongrun Technology Investment Co., Ltd. (hereinafter referred to as “Tongrun Ke Tou”), among others. Chana Capital served as the exclusive financial advisor for this financing round.

Founded in 2017, BREATH MEDICAL is a medical device company specializing in the research and development of otolaryngology instruments. It stands out in the current market as a rare R&D-driven enterprise with a comprehensive product portfolio encompassing both consumables and equipment, providing holistic solutions for otolaryngological surgeries. Reportedly, this round of financing will be used to accelerate the clinical trials of its two core products—the “Low-Temperature Plasma Radiofrequency Surgical System” and the “Fully Bioresorbable Sinus Drug-Eluting Stent”—as well as to support the research and development, manufacturing, and testing of new products.

As air pollution worsens and Chinese citizens’ expectations for quality of life continue to rise, the volume of otolaryngology surgeries has increased significantly each year, indicating substantial market potential for otolaryngology products.

It is understood that fully bioresorbable drug-eluting sinus stents are primarily indicated for the treatment of patients with chronic rhinosinusitis. Conventional endoscopic sinus surgery is prone to postoperative complications such as nasal bleeding, adhesions, and polyp formation, which significantly compromise surgical outcomes. The use of BREATH MEDICAL’s fully bioresorbable drug-eluting sinus stent in conjunction with endoscopic sinus surgery can effectively prevent these postoperative complications, thereby enhancing therapeutic efficacy and achieving a complete cure for chronic rhinosinusitis.

The company’s product pipeline features a well-balanced gradient and depth, combining speed with quality. Several domestically pioneering products have entered small-batch production and testing phases, with the expectation of obtaining regulatory approval and launching on the market through the National Medical Products Administration’s “Green Channel” for innovative medical devices. Reserve products have also progressed into the laboratory R&D stage.

As of now, BREATH MEDICAL has had 10 invention patents and 7 utility model patents accepted. The company is conducting clinical collaborations with renowned hospitals such as Peking Union Medical College Hospital, the Chinese PLA General Hospital in Beijing, and Shanghai Xinhua Hospital.

The R&D of a comprehensive ENT product portfolio has created a synergistic competitive advantage for BREATH MEDICAL. Pang Yonggang, founder of BREATH MEDICAL, stated, “BREATH MEDICAL is committed to providing clinicians with holistic solutions for disease treatment, rather than relying on single-product therapeutic approaches. Only with a complete product line can we provide robust support for future market promotion, technical assistance, and academic engagement. In the face of new market competition driven by volume-based procurement and tender bidding, multi-product portfolios and holistic solutions offer significant advantages in bargaining power, quality assurance, and logistics cost efficiency.”

Pang Yonggang holds an MBA and a Ph.D. in Management Philosophy from Beijing Normal University. He previously worked at B. Braun in Germany for seven years, at Johnson & Johnson in the United States for four years, and at Shanghai Kinetic Medical for five years, where he was responsible for the clinical development and sales of Fangrun plasma technology across China. With his academic background in philosophy, when asked about BREATH MEDICAL’s advantages that helped secure this round of financing, Pang Yonggang joked that he would approach the question from a philosophical perspective, summarizing it in terms of internal and external factors.

“First and foremost, in terms of internal factors, BREATH MEDICAL has chosen the right track.” The “right track” referred to by Pang Yonggang is the medical device sector for otolaryngology (ear, nose, and throat, ENT). With seven years of clinical experience and 16 years in sales management for medical devices, Pang possesses keen insights into the medical device market. He noted that the volume of ENT surgeries in China is substantial, with over 300,000 functional endoscopic sinus surgery (FESS) procedures and more than 400,000 tonsillectomy and adenoidectomy procedures performed annually. The annual consumption of high-value ENT consumables in China amounts to approximately RMB 3 billion, with a compound annual growth rate (CAGR) of 18%, making it the fastest-growing niche segment within the medical device industry.

However, in such a large market, the majority of the market share is occupied by products from foreign companies, with very few original products offered by domestic manufacturers. Even within China, the ENT (ear, nose, and throat) product sector is highly fragmented, lacking any monopoly or semi-monopoly landscape; the largest company holds only a 10% market share. “In such a fragmented environment, there is fertile ground for startups to grow. BREATH MEDICAL has the opportunity to emerge as a dark horse and become the No. 1 player in the ENT product segment,” said Pang Yonggang.

Pang Yonggang added, “Regarding external factors, we must first acknowledge the favorable policy environment for innovation and entrepreneurship in China’s medical technology sector. The state’s recent emphasis on R&D-driven technological orientation for healthcare enterprises will undoubtedly fuel rapid growth for innovative medtech companies over the next ten to twenty years. Secondly, China’s vast market foundation ensures that even niche segments—such as ENT, which has historically received less capital attention—offer substantial and unpredictable market returns. This market is large enough to support more than just two or three major players. Moreover, the current high fragmentation and low localization rate in the ENT market provide a solid foundation for the rapid growth of small and medium-sized tech startups. Thirdly, with economic development, public demand for advanced medical technologies has exceeded expectations. We cannot calculate market size using traditional treatment paradigms; instead, capturing any upgrade in demand—such as for fully bioresorbable sinus stents—can serve as a significant breakthrough point.”

Second, all of BREATH MEDICAL’s products originate from original innovations by physicians, and close collaboration with doctors is an essential path for the company’s development. We have successively received needs, improvement suggestions, and innovative ideas from department heads and physicians at multiple top-tier hospitals in China. Third, new healthcare reform measures, such as the “4+7” volume-based procurement program, provide greater opportunities for companies like BREATH MEDICAL that boast a diverse product portfolio and clear departmental positioning, including import substitution and offering comprehensive treatment solutions to physicians.

Li Dong, Zhu Min, and Wang Weixing of Tongrun Ke Tou stated“Domestic medical investment remains robust, and the ability to maintain independent thinking when selecting suitable investment targets poses a significant challenge for every investment institution. Rather than consistently chasing ‘hot sectors,’ Tongrun prefers to strategically position itself in areas that are not yet receiving widespread acclaim but where domestic companies have the opportunity to catch up. In this regard, otolaryngology aligns with our criteria. Among numerous otolaryngology companies, BREATH MEDICAL stands out with its distinctive characteristics: a relatively comprehensive product portfolio that effectively addresses market pain points, along with strong reserves across the near, medium, and long term. This positions the company to leverage its market advantages through a combined strategic approach in the future.”

As the exclusive financial advisor and long-term partner for this round of financing,Hao Fangran, Vice President of Chana Capital, believes that“BREATH MEDICAL focuses on the fast-growing and high-potential niche of ENT instruments. With a pragmatic approach, it has rapidly achieved product commercialization and implementation, demonstrating strong resilience and long-term vision. Such companies are more likely to attract investment during a capital winter.”

Beijing Qingke Tongrun Technology Investment Co., Ltd. was established in 2013 and is located in Zhongguancun, the birthplace of China’s strategic emerging industries. The company specializes in early-stage equity investments in high-tech sectors such as intelligent manufacturing and medical devices. Its core strengths lie in its ability to conduct in-depth technical analysis and identification of projects, as well as its expertise in standardized management for small and micro enterprises. Portfolio companies include Huaqing Yinlan, Yongdao Zhiyuan, Langkai'er Medical, Runhe Weiguang, among others.