Deepwise Medical Secures Hundreds of Millions in Series C Funding to Advance Full-Disease AI Diagnostics

VCBeat (WeChat ID: vcbeat) has learned that DeepWise, a medical AI company, announced the completion of its Series C financing round. This round was strategically led by Sunshine Insurance Group, with participation from Changfazhan, Silk Road Huachuang, and Shanlan Capital. Four investors from the previous two rounds—Legend Capital, Kinzon Capital, Daotong Investment, and Tongdu Capital—continued to participate.

This round of funding will continue to be invested in expanding AI initiatives and explorations within the broader health sector, with the aim of building a forward-looking AI ecosystem. This signals that DeepWise’s products and services are evolving from single-disease diagnosis and treatment to comprehensive, all-disease coverage; from standalone technology applications to an integrated technology ecosystem; and from single-modality data learning to multimodal human–machine interaction.

This financing round has sent strong shockwaves through the increasingly quiet medical AI market. The massive influx of capital has disrupted the calm of the investment landscape, potentially reinvigorating the “AI + Healthcare” sector.

It did not take long for startups to shift their focus from the initial emergence of artificial intelligence in healthcare to specifically targeting medical imaging. After many entrepreneurs initially championed grand visions such as life management and genetic testing in the early days of AI, the market gradually cooled down and redirected its attention toward the relatively simpler task of image recognition.

Consensus was reached in a remarkably short time, as medical imaging provides artificial intelligence with vast amounts of image data and seemingly accessible business models, while the market potential for AI-based imaging is also substantial. In the blink of an eye, fragmented capital converged on the “AI + Imaging” sector.

In 2017, DeepWise secured angel-round financing just one month after its establishment to fund the in-depth research and development of an AI-assisted medical imaging diagnostic system for early lung cancer screening.

In its early stages, DeepWise’s R&D efforts were largely indistinguishable from those of other peers in the industry: starting with basic pulmonary nodule detection, the company focused on enabling lifeless code to accurately identify nodule characteristics that threaten lung health, thereby automatically detecting them to provide diagnostic support for physicians. As clinical collaborations strengthened, DeepWise recognized the critical importance of physician feedback in advancing AI research and development. By equipping developers with medical knowledge, the company was able to create AI products that were not only more streamlined but also better aligned with clinical workflows. Understanding and serving clinical practice has gradually become the foundational benchmark for DeepWise’s AI product development.

DeepWise has partnered with over 400 hospitals, significantly enhancing the quality of its AI products. Reportedly, DeepWise’s AI solution for pulmonary nodules has achieved a detection rate of 98%, while additional product lines covering breast health, stroke, and pediatric growth and development assessment have also been launched.

During the interview, VCBeat sought to identify the key factors that enabled DeepWise to break through the competitive landscape against the backdrop of the 2019 funding cooldown. However, in the view of CEO Qiao Xin, fundraising is not a single point but a continuous line. Medicine is a discipline that requires gradual and sustained effort; while successful fundraising may be dazzling, what matters more is the stable and solid “line” established beforehand.

“While the users of our consultation and triage services are ordinary patients, in fields such as medical imaging, pharmaceuticals, and pathology, the direct users of our products are physicians, who demand a higher level of professional rigor. We have been committed to delivering AI products that truly meet clinical needs, rather than marketing them with ambiguous or exaggerated narratives. Even when a hospital has already deployed numerous AI imaging solutions, DeepWise continues to receive sincere feedback and suggestions from its clients on a regular basis. This is the greatest recognition from the market and the key to DeepWise’s sustained growth.”

“Of course, even though market research reports have consistently valued the AI medical imaging market at hundreds of billions, medicine is an extremely rigorous and complex discipline. Focusing solely on detection in specific anatomical regions offers limited assistance to the entire diagnosis and treatment workflow, thereby constraining the scope for enterprises to create value.” In Qiao Xin’s view, most artificial intelligence companies are merely concentrating on niche areas within the vast elephant that is the medical system, making it difficult for them to establish comprehensive, systematic solutions.

DeepWise has also traversed this path, but by no means stops here.

To date, the algorithm research team at DeepWise Research Institute has grown to 80 members—a considerable luxury for a startup. Qiao Xin believes that artificial intelligence still has a long way to go in terms of algorithmic maturity, and DeepWise Medical needs more talent to carry out foundational AI development work.

“DeepWise will develop a platform that integrates patients’ physiological data, imaging data, and other pathological information to create a modular representation of the human body. By developing artificial intelligence solutions for each module individually, it aims to address patient issues collaboratively from both macroscopic and microscopic perspectives.” Of course, DeepWise is not so reckless as to redesign AI algorithms for every niche scenario; rather, recognizing medicine as a complex system, DeepWise is striving to clarify and streamline this system.

DeepWise has pioneered a comprehensive portfolio of AI-powered healthcare products, including an AI-assisted diagnostic and treatment system for medical imaging, an intelligent imaging cloud platform, a multimodal research platform, an intelligent in-hospital consultation and triage system, and an AI-based medical pathology inspection system.

In the future, DeepWise will conduct more AI trials and explorations in the big health sector, build an AI ecosystem, and evolve its products and services from single-disease diagnosis and treatment to comprehensive disease management, from single-technology applications to a technological ecosystem, and from unimodal data learning to multimodal human-computer interaction.

DeepWise’s Five Flagship Products

Major enterprises began their AI-driven strategies to build healthcare ecosystems last year. Traffic and channel companies, led by GPS, Meinian Onehealth, and iKang Healthcare Group, have recruited a large number of partners to develop new scenarios, creating opportunities for AI startups.

Health checkups represent a key scenario well-suited for imaging-based products and serve as an important lever for the state to reduce medical insurance expenditures and achieve the goal of “shared development and universal health.” After identifying the three major factors of market, demand, and policy, DeepWise swiftly initiated collaborations with leading health checkup providers. This marks a significant opportunity for the commercialization of artificial intelligence, making DeepWise one of the first AI companies to partner with major players in the health checkup industry.

Another category of excellent partners consists of large medical imaging equipment manufacturers, whose widespread deployment in hospitals provides startups with opportunities for product implementation, thereby driving improvements in both data quality and product quality.

To assist physicians in scientific research and promote medical advancement, DeepWise has developed a deep learning-based research platform for clinicians, employing novel statistical methods to address data-related challenges encountered in their studies. Meanwhile, DeepWise is also committed to nurturing the next generation of medical talent.

In April 2019, DeepWise entered into a strategic partnership with Tianjin Medical University and established a Joint Laboratory for Medical Artificial Intelligence Technology to support the university’s R&D efforts and disciplinary development in the field of artificial intelligence. Meanwhile, DeepWise has set up multiple joint funds and scholarships to encourage academic researchers to conduct various research projects centered on clinically applied medical AI.

Furthermore, DeepWise and the Shanghai Jiao Tong University Medical Robotics Institute have jointly developed a series of academic achievements, which are expected to be successfully translated into practical applications and implemented in clinical settings in the near future.

As can be seen, while DeepWise focuses on technology, it also places significant emphasis on its promotion. Only by being applied in real-world scenarios and tested through practice can the viability of a company’s products be determined.

Two highlights can be seen from this round of investment.

First, in DeepWise’s Series C financing round, Legend Capital, Kinzon Capital, Daotong Investment, and Tongdu Capital had all invested in the company’s previous funding rounds. Notably, Kinzon Capital has been an investor since the initial round, a rarity in the medical AI sector given that the artificial intelligence market is not as mature as other markets.

Secondly, the lead investor in this funding round has shifted to Sunshine Insurance, which specializes in health-focused insurance services. With advancements in modern medical technology and heightened health awareness among patients, life expectancy continues to rise, placing increasing strain on insurance payouts. Consequently, insurers urgently need artificial intelligence to innovate and streamline policy formulation.

Healthcare has always been a key strategic direction for the financial and insurance industries. DeepWise’s advancements in medical AI align closely with the healthcare sector, and both parties will soon embark on a new model of strategic cooperation. Meanwhile, as artificial intelligence has been elevated to a national strategic priority in China, DeepWise has also secured government-guided funding.

Capital from various sectors has invested in DeepWise, underscoring the vast potential of AI-powered medical imaging technology.

Qiao Xin stated, “DeepWise’s recognition by the market and investors affirms our development strategy. Meanwhile, the trust and support from industry peers have consistently spurred DeepWise to pursue bold innovation and continuous self-transcendence, thereby rewarding the market and serving customers with exceptional products and services.”

Song Wenlei, General Manager of the Strategic Investment Department at Sunshine Insurance Group, the lead investor in this round, stated, “Healthcare has always been one of the key sectors for Sunshine Insurance’s strategic layout. In recent years, artificial intelligence has seen widespread application in the field of medical imaging. For AI healthcare startups, any weakness in technical capabilities, product development, understanding of the healthcare industry, or business acumen can severely constrain their growth. Among the teams we have engaged with, DeepWise demonstrates a well-balanced strength across these critical areas. Despite being established for just over two years, DeepWise has rapidly ascended to the industry’s first tier, achieving remarkable results in market expansion, clinical implementation, and product R&D iteration. We believe that under the leadership of Mr. Qiao and his team, DeepWise will continue to refine its offerings and deliver more AI-powered healthcare products that closely align with clinical needs.”

As another representative of new investors, Nie Hongxin, Managing Partner at Shanlan Capital, stated, “Shanlan Capital is optimistic about the limitless possibilities that artificial intelligence, driven by advancements in healthcare and technology, brings to medical imaging. Through this investment in DeepWise, we recognize its potential as a leader in next-generation medical diagnostic technologies that integrate deep learning with radiomics. We firmly believe in the pioneering capability of DeepWise’s top-tier team in promoting the deep integration of artificial intelligence and healthcare. Meanwhile, Shanlan Capital’s extensive industry resources will continue to support and empower DeepWise’s rapid development.”

Li Jiaqing, Managing Director and Chief Investment Officer of Legend Capital, which led the Series B round and participated in the follow-on investment, stated: “We remain optimistic about the application prospects of artificial intelligence in the field of medical auxiliary diagnosis. Meanwhile, we highly value the founding team—comprising Lei Ming, Qiao Xin, Li Yiming, Yu Yizhou, and others—who possess extensive experience in corporate operations and scientific research. Historically, Legend Capital has invested in numerous healthcare services and medical device companies, all of which can provide strong support for DeepWise’s technology validation and commercial implementation.”

As an angel investor in DeepWise, Kinzon Capital has accompanied the company throughout its growth and expansion, continuing to participate in its Series C financing round. Wang Jun, Founding Managing Partner of Kinzon Capital, stated, “Medical diagnosis powered by medical imaging technology serves as a critical entry point for the entire healthcare industry, offering substantial development potential and vast opportunities. DeepWise has demonstrated exceptional industry capabilities in its business model, operational development, and technological research. We congratulate the company on its remarkable progress and remain committed to providing long-term, steadfast support for its future growth.”

As a new investor, Silk Road Huachuang’s investment in DeepWise is based on the significant strategy, market demand, and broad prospects of artificial intelligence applications in the healthcare sector, as well as DeepWise’s innovative DNA in technology R&D and its service-oriented DNA in the medical field. Silk Road Huachuang believes that DeepWise and its team possess the technology, market presence, and social responsibility to rapidly grow into an enterprise with both investment value and social value.

Sun Qi, Managing Partner at Daotong Investment, stated: “As an early investor in DeepWise, we are delighted to see its rapid growth into a leading AI platform enterprise in medical imaging and will continue to support its future development. Medical AI is a key sector that Daotong Investment has been focusing on and strategically investing in. Among the medical AI companies we have encountered, DeepWise boasts the most complete and well-rounded founding team, which has been a critical factor in the company’s current success. The completion of this financing round signifies that the landscape of leading platforms in AI-driven medical imaging has largely taken shape. While opportunities for launching comprehensive medical AI platforms have diminished, AI still holds broad application potential in healthcare, offering substantial growth prospects for companies specializing in vertical domains. The growth of leading platform companies will also help drive the improvement of relevant policies and the industrial ecosystem, thereby fostering the development of more companies within the industry.”