Home Lingzhi Medicine Secures RMB 30 Million Series A Funding from Cixuan Capital to Build China's Leading Microbiome Health Management Brand

Lingzhi Medicine Secures RMB 30 Million Series A Funding from Cixuan Capital to Build China's Leading Microbiome Health Management Brand

Oct 10, 2019 08:00 CST Updated 08:00

VCBeat (WeChat ID: vcbeat) recently learned that Shenzhen Lingzhi Medical Technology Co., Ltd. (hereinafter referred to as “Lingzhi Medical”), a company focused on microbiome health management, has completed its RMB 30 million Series A financing round. The proceeds will be primarily used for expanding its microbiome laboratory, opening new microbiome health management centers, and recruiting and training staff. It is reported that this round of financing was solely led by Cixuan Capital.

 

In recent years, people have become increasingly concerned about their health. However, when a plethora of high-tech health products hit the market, few consumers actually purchase and consistently use them. Yue Peng, founder of Lingzhi Medical, has repeatedly emphasized in interviews that “customer psychology is subtle.” When faced with numerous high-tech health products, users are often presented with lofty “technical descriptions” that seem disconnected from their personal needs. What do these have to do with them? Products that feel cold and fail to resonate with human nature naturally receive poor market response.

 

These remarks by Yue Peng are not mere theoretical musings. Lingzhi Medical has already established a chain of health management institutions in cities such as Harbin and Yunxiao, focusing on penetrating lower-tier markets and tailoring its products to genuinely meet customer needs, rather than engaging in flashy but superficial promotion. To date, Lingzhi Medical has launched several micro-ecology health management chain facilities, serving 2,000 clients and receiving highly positive market feedback.

 

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“Dr. Yue, how did you lose weight?”

 

“To let customers truly experience the changes brought by biotechnology,” Yue Peng was among the first to recognize the profound impact of gut microbiota management on human health. Three years ago, as the field of health management through gut microbiota modulation began to gain momentum, Yue Peng, with his professional background in drug development, entered this arena with skepticism. His journey—from being one of the “first guinea pigs” to frequently being asked, “Dr. Yue, how did you lose weight?”—made him realize the vast market potential of microbial ecology-based health management.

 

Having recognized the market potential and personally experienced the health benefits of microbiome management, Yue Peng devoted himself wholeheartedly to the field of microbiome-based health management. The mission of Lingzhi Medicine is to achieve health management by modulating the microbiome environment within clients’ bodies.

 

When clients visit Lingzhi Medical Health Clinic for wellness management, the clinic assigns each client a dedicated professional health manager and health expert. The client is added to a private three-on-one service group chat, which includes the clinic director. The clinic first conducts an analysis of the client’s physiological parameters, such as blood pressure, blood glucose, and blood lipids, and then formulates a personalized wellness plan based on the individual’s condition. All test results and data are confined exclusively to the private group chat to ensure confidentiality, with no data sharing conducted.

 

Following the initial health assessment of clients, the company provides a 12-week health management service. During this period, genetic testing is conducted every two weeks to personalize dietary plans involving fruit and vegetable fiber powders based on the test results. Currently, the company has developed 135 customized product formulas, matching clients with the most suitable health products in two-week intervals. These specific dietary arrangements aim to regulate the gut microbiota, ultimately achieving the goal of comprehensive health management.

 

Currently, Lingzhi Medical primarily focuses on health management through three key entry points:

 

First, focusing on lipid metabolism pathways. This pathway is a crucial signaling cascade regulating insulin resistance and is closely associated with the onset and progression of early-stage type 2 diabetes, offering potential solutions for early-stage diabetes and related conditions;

 

II, focusing on the gut-brain axis. The gut-brain axis is closely associated with emotions such as anxiety and depression; regulating the gut-brain axis can effectively alleviate issues related to sleep and mood;

 

III, focus on the gut-kidney axis. By establishing an intact intestinal mucosal barrier, it inhibits the entry of gut-derived uremic toxins into the bloodstream, thereby protecting the kidneys and reducing some of the renal side effects of medications.

 

Perhaps the most intriguing question is whether health management can truly be achieved through microbiome management, and whether this approach is reliable. Yue Peng responded, “Whenever we open a new store or consult with clients, we thoroughly explain the underlying scientific principles, much like delivering an academic lecture. We clarify what Lingzhi Medicine can and cannot improve, along with the reasons behind these limitations. Many clients experience weight loss and improved sleep after undergoing our health regulation programs. While clients focus on the visible outcomes, Lingzhi Medicine emphasizes tangible changes in clinical data, such as blood pressure and blood glucose levels.”

 

In terms of product safety, Lingzhi Medical has also provided satisfactory answers. Lingzhi Medical’s health products have currently passed safety certifications in China, the United States, Japan, and the European Union, and the company has purchased product liability insurance from China Pacific Insurance, prioritizing customer safety above all else. Lingzhi Medical’s health management solutions are personalized based on standardized genetic testing methods referenced from U.S. practices—a health management approach recognized within mainstream medicine. Yue Peng emphasized, “Lingzhi Medical aims to assist physicians rather than replace conventional pharmacological treatments; all health interventions we adopt are endorsed by doctors.”

 

Currently, Lingzhi Medical has launched nearly 30 microecological health management clinics, generating annual sales revenue of over RMB 20 million. The company plans to expand its chain to 100 clinics next year, with sales revenue exceeding RMB 100 million.

 

Looking ahead, Lingzhi Medical aims to leverage its technological advantages in its specialized niche to become China’s leading chain brand for microecological health management, and intends to expand its core technologies overseas along the Belt and Road Initiative.