Stork Healthcare Completes Series A+ Financing, Securing Third Round Within a Year

VCBeat (WeChat ID: vcbeat) has learned that Chengdu Stork Healthcare Co., Ltd. (“Stork”), a domestic company specializing in the ultrasound field, has announced the completion of its Series A+ financing round, led by Sichuan Venture Capital. Probe Capital continues to serve as Stork’s exclusive long-term financial advisor.

Chengdu Stork Healthcare Co., Ltd. completed its Series A financing in January this year, following its angel round in June 2018. Leveraging its proprietary imaging platform and market-defining capabilities, the company has established dual barriers in both technology and commerce, securing three rounds of financing within less than a year.

Currently, Stork’s handheld ultrasound products have obtained the Class II medical device registration certificate from the China Food and Drug Administration (CFDA), while applications for CE and FDA registrations are being pursued concurrently. In terms of specific functionalities, Stork has enhanced its product capabilities by enabling simultaneous on-screen transmission alongside features such as 32 physical channels and multi-probe support. Meanwhile, Stork is collaborating with several clinical hospitals to conduct applied clinical research in emergency medicine, anesthesiology, and vascular surgery using its handheld ultrasound devices.

Zhang Zhuo, CEO of Chengdu Stork Healthcare Co., Ltd., stated, “Moving forward, we will continue to proceed with steady and solid steps, advancing the implementation of ASIC chips for underlying packaging platform algorithms and artificial intelligence algorithms, while enhancing the functionalities of our handheld ultrasound products.”

Founded in 2016, Chengdu Stork Healthcare Co., Ltd. has, over the past two years, leveraged its proprietary imaging platform along with key technologies such as original elastography and 3D Doppler spectral imaging to gradually integrate features typically found only in large-scale color Doppler ultrasound systems into handheld ultrasound devices.

Stork’s products first adopt an exclusive patented 32-channel architecture, enabling handheld ultrasound devices to deliver imaging performance comparable to that of large-scale color Doppler ultrasound systems. In the next phase, Stork will integrate ASIC chips into its products, empowering its handheld ultrasound devices with computational capabilities on par with those of large-scale color Doppler ultrasound systems.

Zhang Zhuo, CEO of Chengdu Stork Healthcare Co., Ltd., told VCBeat: “ASIC chips can enhance the computing power of handheld ultrasound devices and reduce their size. Given our strong foundation in developing large-scale color Doppler ultrasound systems, we have a distinct advantage when transplanting their functionalities into handheld products.”

Currently, the only companies capable of encapsulating underlying platform algorithms and artificial intelligence algorithms into ASIC chips are Chengdu Stork Healthcare Co., Ltd. and Butterfly Network, which has raised a total of $350 million. A single ASIC chip integrates 9,000 programmable micro-mechanical sensors that can simulate any type of sensor.

Products equipped with ASIC chips can not only broaden the application scenarios of handheld ultrasound, enabling it to extend beyond hospital imaging or ultrasound departments for wider use in clinical settings such as emergency care, obstetrics, field surgery, and anesthesiology. By incorporating AI diagnostic software packages and semi-automatic/automatic measurement software packages, handheld ultrasound devices can also achieve deeper penetration into the primary healthcare market, providing grassroots physicians with convenient auxiliary diagnostic tools.

As the trends toward intelligence and miniaturization in medical devices accelerate, an increasing number of players are entering the handheld ultrasound sector, intensifying market competition. How can companies maintain their competitive edge and establish a core position in the market?

Zhang Zhuo told VCBeat, “We have consistently maintained a dual-market strategy targeting both hospital departments and primary care institutions. The departmental segment no longer refers solely to traditional radiology departments but now encompasses specialized clinical areas such as emergency medicine, obstetrics, orthopedics and traumatology, and neonatology. In terms of market principles, we remain committed to staying closely aligned with the domestic market, particularly the primary care sector in China.”

To better meet clinical needs, Chengdu Stork Healthcare Co., Ltd. has already collaborated with several hospitals to conduct research on the clinical applications of handheld ultrasound in non-ultrasound and non-radiology departments, including emergency medicine, anesthesiology, and vascular surgery.

At the primary care level, Chengdu Stork Healthcare Co., Ltd. enhances cost-effectiveness through customized modules, deeply cultivating the grassroots market. After two years of dedicated efforts, the company has established a broad foundation for collaboration in this sector. Moving forward, Chengdu Stork will address key pain points in primary care by launching additional functional modules to better meet grassroots needs.

With Stork’s current capability for simultaneous dual-screen transmission, this feature facilitates remote diagnostic assistance for primary care physicians. It enables lower-tier hospitals to conveniently upload images to higher-tier hospitals, thereby realizing remote diagnosis, remote consultations, and tiered diagnosis and treatment.

On the other hand, innovative medical devices seeking to penetrate the primary care sector must also contend with high training and education costs. The screen-mirroring feature can further address the challenge of market education.

“If primary healthcare facilities encounter issues with machine maintenance or upgrades, we can provide remote guidance, eliminating the need for on-site visits by staff as traditionally required,” said Zhang Zhuo.

Following each round of financing, reporters conducted immediate follow-up interviews. Across several funding rounds, it has been evident that Chengdu Stork Healthcare Co., Ltd. (Stork Healthcare) is rapidly advancing in accordance with its established strategic plan. Having completed three rounds of financing within a single year, Stork Healthcare has earned the favor of numerous investment institutions. This achievement is attributed to the company’s profound technological reserves and its pragmatic, steady operational approach. We are confident that Stork Healthcare will continue to deliver more positive developments in the future.