Meditool Secures Tens of Millions RMB in Series A+ Financing with Haoyue Capital as Exclusive Financial Advisor

Recently, VCBeat (WeChat ID: vcbeat) learned that Medvance, a Shanghai-based medical technology company, has secured Evonik’s first direct venture capital investment in China. Previously, Medvance received angel-round funding from Puhua Capital and Series A funding led by Morningside Venture Capital. This latest Series A+ round, amounting to tens of millions of RMB, was led by Evonik, with participation from Zhongnuo Venture Capital, Morningside Venture Capital, and Puhua Capital. JoyCapital served as the exclusive financial advisor.

As Evonik’s first investment in China, Medvance combines 3D printing (additive manufacturing) technology with high-performance polymers in the field of medical implants. Its independently developed 3D-printed medical implants cater to patients’ personalized needs and are primarily applied in neurosurgery, maxillofacial surgery, and spinal surgery. Evonik’s investment in innovative applications of high-performance polymers will also bolster the growth of its smart materials business.

“This is Evonik’s first direct investment in China, and also the first made through Evonik’s second venture capital fund, which was launched this year,” said Bernhard Mohr, Head of Evonik Venture Capital. “This collaboration with Medvance clearly demonstrates how venture capital helps Evonik access disruptive technologies.”

Medvance has developed a hardware and software system that can directly read and process images from conventional magnetic resonance imaging (MRI) or computed tomography (CT) scanners. The system then generates 3D models optimized for printing and sends them to the printer. Finally, implants are fabricated using 3D printing technology with Evonik’s high-performance polymer, polyether ether ketone (PEEK), as the raw material.

“Medvance’s technology will directly help us further advance Evonik’s strategic development in the field of additive manufacturing for advanced materials,” said Thomas Grosse Pupendahl, Head of Innovation and Growth in Additive Manufacturing at Evonik. “Applications in the medical field are highly attractive. Our high-performance polymers have proven to be a reliable material for implants and are suitable for other application areas, including dentistry.”

For patients and physicians, 3D-printed PEEK implants represent a revolutionary product compared to conventional metallic solutions currently available in the neurosurgical, orthopedic, and plastic surgery implant markets. 3D printing enables customization; for instance, it allows for the fabrication of bone plates that precisely conform to a patient’s cranial defect, thereby reducing additional surgical risks associated with adjusting the implant’s size, shape, or position.

On the other hand, cranial implants currently used in clinical practice are mostly made of metallic titanium mesh. Due to the high thermal conductivity of metal, patients’ surgical sites cannot be exposed to high or low temperatures for extended periods. In contrast, PEEK’s relatively low thermal conductivity can effectively reduce the risk of excessive heating or cooling of the implant within the patient’s body, making it highly favored by both physicians and patients and positioning it as a promising candidate to gradually replace existing metallic products. Furthermore, PEEK material exhibits excellent biocompatibility, is harmless to living tissues, and allows patients to undergo CT and MRI scans postoperatively.

“Medvance is one of the pioneers in the development of 3D-printed PEEK medical implants. Evonik has always been our trusted raw material partner. This investment will further drive the company’s growth, enabling us to bring innovative solutions to patients and physicians in China first, and then benefit the rest of the world,” said Jin Qingyu, Co-founder and Chief Technology Officer of Medvance.

“China is a key growth market for Evonik and one of the major drivers of global innovation,” said Dr. Christian Kullmann, President of Evonik’s Northeast Asia region. “China is not only a cradle for leapfrog technologies but also boasts a large population base and a growing middle class, which are driving rapid demand growth.” The Chinese market is the world’s second-largest market for medical implants, with an expected annual growth rate of 10–15%.

Liu Hao, CEO and Founder of Haoyue Capital, stated, “3D printing technology offers unparalleled advantages in the manufacturing of customized and complex-structured medical devices, meeting the needs for personalized patient care. In the fields of cranial and maxillofacial reconstruction, where Medvance excels, there is particularly strong demand from both physicians and patients for customized implant consumables. Currently, the performance parameters of Medvance’s 3D-printed PEEK implants are at the international forefront. As one of the world’s top three suppliers of PEEK raw materials, Evonik’s equity investment will enable Medvance to establish significant barriers to entry in the upstream raw material sector for medical-grade 3D-printed PEEK. We firmly believe that with the growing acceptance of personalized medicine among physicians and patients, along with the continued improvement of regulatory policies for the registration and approval of 3D-printed medical devices, Medvance is poised to achieve substantial success in the field of medical 3D-printed implants.”

About Evonik

Evonik is a global leader in specialty chemicals. Its strategic core is built on its focus on specialty chemicals, customer-oriented innovation capabilities, and a corporate culture that champions trust and performance, driving continuous profitable growth and enhancing corporate value. Furthermore, Evonik’s development has been significantly bolstered by its close customer relationships and market-leading positions. With operations in more than 100 countries and regions worldwide, Evonik employs over 32,000 people. In the 2018 fiscal year, Evonik generated sales of approximately €13.3 billion and achieved an operating profit (adjusted EBITDA) of €2.15 billion.

Evonik’s international operations are divided into six regions, with the North Asia headquarters located in Shanghai, China. In 2018, Evonik’s sales in the North Asia region reached €1.97 billion. Evonik regards China as one of the key drivers of global economic development and is committed to achieving sustained business growth in the country. Currently, we have more than 2,500 employees and 10 production sites in China.

About Zhongnuo Venture Capital

Zhongnuo Venture Capital is an investment firm dedicated to the life sciences and healthcare sectors. Through its managed funds, it currently invests in high-quality, high-potential biotechnology and healthcare companies in the Chinese market. Its portfolio spans startups, growth-stage, and mature enterprises, with a focus on innovative drugs, medical devices, healthcare services, in vitro diagnostics, and related emerging markets.

About Morningside Venture Capital

Morningside Ventures, an affiliate of Morningside Group, conducts high-tech venture capital investments globally. Since its establishment in 1986, Morningside Ventures has been dedicated to supporting healthcare and biotechnology companies worldwide at their startup and growth stages. Its investment portfolio spans numerous fields, including new drug development, clinical diagnostics, medical devices, healthcare services, and digital health. Morningside Ventures boasts an excellent investment management team, most of whose members have experience in corporate operations and entrepreneurship. The team possesses a deep understanding of the frontiers of life sciences, the healthcare industry, and the entrepreneurial and investment environments across different regions.

About Puhua Capital

PuHua Capital, established in 2004, is a venture capital firm specializing in healthcare, emerging technologies, and cultural consumption. With assets under management totaling RMB 18 billion, the firm has invested in more than 400 companies. As a key focus area, PuHua Capital has strategically positioned itself across the healthcare and wellness sector, covering precision medicine, biopharmaceuticals, medical robotics, innovative medical devices, and healthcare services. Its portfolio includes over 100 companies such as Micro-Tech Nanjing, Yuce Bio, WeGene, Remebot, GeneDock, Aishen Medical, Hu Qing Yu Tang, and Huatong Medicine. The firm has been consistently recognized among the Top 20 Healthcare Investment Institutions in China by Zero2IPO and ranked among the Top 10 Best Medical Device Investment Institutions in China’s Healthcare and Health Services Industry by CVSource.