Vision Medicals Secures RMB 100 Million Series A Funding Led by Volcanics Capital and Guoke Jiahe Fund to Pioneer Infectious Disease Precision Medicine

On September 11, 2019, VCBeat (WeChat ID: vcbeat) learned that VISION MEDICALS had completed its RMB 100 million Series A financing round, co-led by Volcanic Stone Capital and CAS Star Capital.

In recent years, following reproductive health and oncology diagnosis and treatment, infectious pathogen diagnosis has emerged as a new frontier in precision medicine. The advent of novel technologies, such as CRISPR-based rapid diagnostics and pathogen metagenomics based on high-throughput sequencing, has effectively enhanced the detection capability for clinical pathogens, shortened reporting turnaround times, and accelerated the development of the precision medicine industry for infectious diseases.

VISION MEDICALS, dedicated to precision medicine for infectious diseases. It operates a medical testing laboratory, R&D center, and GMP-certified production facility spanning nearly 3,000 square meters. The company features two core technological products: the pathogen metagenomics platform, IDseq^TMID-CRISPR: A Rapid Pathogen CRISPR Diagnostic Platform^TM 。

Currently, IDseq^TMVISION MEDICALS’ Medical Testing Laboratory has achieved the fastest nationwide 24-hour turnaround for dual DNA/RNA workflows, processing nearly 2,000 clinical samples per month. The ID-CRISPR^TMThe Demo was successfully applied for the first time to the rapid detection of *Mycobacterium tuberculosis*. The first international clinical evaluation paper on the application of this technology to pathogen detection, conducted in collaboration with Huashan Hospital Affiliated to Fudan University in Shanghai, has been accepted by the renowned SCI journal *Emerging Microbes & Infections* (EMI) (Impact Factor: 7.2).

“Leveraging advanced technology to serve more patients!” stated Dr. Xu Teng, Founder and CTO of VISION MEDICALS. Since its inception, the company has clearly defined technological innovation as its strategic core. “To address the challenge of detecting trace amounts of pathogen nucleic acids in clinical samples, we have developed proprietary pathogen nucleic acid enrichment technology. By accumulating big data from pathogen detection, we have established an intelligent analysis and reporting system for pathogen metagenomics. Furthermore, we are the first team internationally to develop and clinically validate rapid diagnostic methods for key pathogens on a CRISPR-based diagnostic platform. Our mission is to ensure that patients with infectious diseases benefit from these novel pathogen diagnostic technologies,” he added.

Technological innovation stems from the team, and the establishment of the platform has been infused with the team’s dedication. Mr. Wang Xiaorui, Founder and COO of VISION MEDICALS, stated, “Pursuing excellence is our team’s commitment to high-efficiency execution.” Over the past year, the team’s efforts have enabled VISION Medical Laboratory to obtain the “Medical Institution Practice License” issued by the Guangzhou Municipal Health Commission and the qualification as a “Clinical Gene Amplification Testing Laboratory” granted by the Guangdong Provincial Clinical Laboratory Center. The GMP production workshop for VISION MEDICALS’ in vitro diagnostic instruments and test kits has been completed and put into operation, with an annual production capacity of over 1.5 million tests for infectious disease diagnostic kits. Meanwhile, VISION MEDICALS has established joint laboratories in several top-tier tertiary hospitals across China, demonstrating comprehensive capabilities in providing end-to-end solutions for pathogen metagenomic testing laboratory platforms.

VISION MEDICALS has assembled a team of professionals with extensive experience in both infectious pathogen diagnostics and the high-throughput sequencing industry. Mr. Li Yongjun, Founder and CEO of VISION MEDICALS, stated, “It is precisely this industry background that has given us a profound understanding that behind every precious sample lies a patient in urgent need of treatment. VISION MEDICALS will remain committed to advancing precision medicine for infectious diseases, guided by a corporate culture of pragmatic collaboration and mutual success.” This round of financing will be primarily allocated to three strategic directions:

1. R&D Investment: Optimization and upgrading of pathogen metagenomics products and gene editing-based rapid diagnostic products;

2. Registration and Filing: Accelerate the registration testing and clinical trials for the first metagenomic next-generation sequencing (mNGS) product;

3. Clinical Collaboration: The national network of medical laboratories collaborates with top-tier Grade 3A hospitals on scientific research and joint platform development.

Zhang Suyang, Managing Partner at Volcanic Stone Capital, believes:Higher pathogen detection efficiency and shorter reporting turnaround times are key to breakthroughs in precision medicine for infectious diseases. Developing related diagnostic technology platforms requires a team with strong multidisciplinary expertise, integrating fields such as clinical infectious diseases, molecular biology, bioinformatics, and POCT product development. The team at VISION MEDICALS is precisely composed of industry professionals from these specialized domains. We are optimistic about the company’s strategic direction and its team, and we will continue to support VISION MEDICALS’ long-term development.

Chen Hongwu, Managing Partner of Guoke Jiahe Fund, stated:The emergence of new technologies and platforms, such as pathogen metagenomics and CRISPR-based rapid diagnostics, has injected new momentum into the field of precision medicine for infectious diseases. Precision medicine in infectious diseases can guide the rational use of antibiotics and the effective control of nosocomial infections, offering promising commercial prospects. Furthermore, the VISION MEDICALS team boasts outstanding technological innovation capabilities, with remarkable strengths in platform development and clinical collaboration. GKC Capital will provide post-investment value-added services across multiple dimensions, including talent, technology, government, and industry resources, to fully support VISION MEDICALS in becoming a leading brand in precision medicine for infectious diseases.

Volcanic Stone Capital, established in May 2016, is dedicated to identifying, investing in, and serving high-growth-potential startups in the fields of China’s internet innovation, pan-intelligent technologies, and new healthcare. It provides sustained value-added services to grow alongside these companies. As a professional venture capital fund with a global perspective, it delivers superior returns to its investors.

Partners Zhang Suyang, Dong Yeshun, and Wu Ying, as partners of top-tier USD/RMB funds, have worked closely together for many years. They collectively possess over 60 years of investment and corporate management experience, along with deep industry resources. Their previous investment achievements include Ctrip, Tudou, Hanting, Home Inn, EachNet, GoodYee, Andon Health, Kanghui Medical, Baosteel Packaging, Ping An Good Doctor, Shanghai Pharma Cloud Health, Ecovacs Robotics, Taibang Biological Products, and Best Express. To date, Volcanic Stone Capital has invested in outstanding projects such as Geek+, Shebaotong, Gene+, Aimeng, Geio, Jianke.com, Fourier Rehabilitation Robotics, Shanghai Cell Therapy Group, and Anjie IoT.

Established in 2011, CAS Capital (Guoke Jiahe Fund) is a primary equity investment platform initiated by CAS Holdings Limited. It currently manages multiple funds, including two RMB venture capital funds, two RMB merger and acquisition funds, one industrial special fund, one USD venture capital fund, and government-specialized funds, with total assets under management reaching tens of billions of RMB. Leveraging the Chinese Academy of Sciences’ world-class technological capabilities, extensive high-tech commercialization achievements, and government and industry resources, and backed by a professional team with rich investment and management experience, CAS Capital focuses on emerging sectors such as Information Technology (TMT) and Life Sciences. It prioritizes investments in early-stage and growth-stage high-tech innovative enterprises with strong technological barriers. The fund has strategically invested in fields including IoT-enabled intelligent manufacturing, mobile internet and services, big data, cloud computing and artificial intelligence, fintech, cybersecurity, medical services, medical devices, and pharmaceuticals, having cumulatively invested in nearly 100 companies.