ZhuoDao Medical Secures Tens of Millions in Pre-A Funding Led by Mifang Capital to Advance High-End Rehabilitation Robotics

Recently, VCBeat (WeChat: vcbeat) learned that Shanghai ZD Medical Technology Co., Ltd. (“ZD Medical”) has completed a tens-of-millions-yuan Pre-A round of financing. This round was led by Med-Fine Capital, with Zhongbo Fund participating as a co-investor. This marks ZD Medical’s latest funding round following its seed and angel rounds completed in 2016 and 2017, respectively.

Shanghai ZD Medical Technology Co., Ltd. is a company focused on the research, development, and application of rehabilitation robots and intelligent rehabilitation solutions. It is reported that the company currently has four products at various stages of regulatory approval and has filed a total of 25 patents.

What kind of team and enterprise is this? Why did it secure investment from Med-Fine Capital? To understand the specifics of this financing round, VCBeat conducted exclusive interviews with Wang Daoyu, CEO of ZD Medical, and Su Zhonghe, Managing Director at Med-Fine Capital.

According to an article by VCBeat“ZD Medical: Focusing on Robot-Assisted Technology and Intelligent Interactive Services for Rehabilitation Based on Clinical Application Scenarios, Running the Marathon of Entrepreneurship in the High-End Rehabilitation Equipment Field”showing that the four products currently owned by ZD Medical are:

First, the exoskeleton-type upper limb rehabilitation training robot Nimbot, which fully matches the human upper limb and features a 5-degree-of-freedom mechanical shoulder joint, enabling full-range rehabilitation training for the upper limb;

Second, the traction-based upper-limb rehabilitation training robot ArmGuider allows therapists to personalize patients’ upper-limb movement trajectories within a two-dimensional plane and features comprehensive mechanical interaction capabilities;

Third, the SmartColor platform, a goal-directed occupational therapy system that integrates auditory, visual, tactile, and proprioceptive multisensory training through extensive feedback mechanisms—including colorful lighting, sound effects, somatosensory input, pressure sensing, and vibration.

Fourth, SmartSling, a bedside lower-limb rehabilitation training robot that is suspended and mobile, providing full coverage of all degrees of freedom for hip and knee joint training.

It is reported that ArmGuider obtained the Class II medical rehabilitation device certification on November 19, 2018, enabling mass sales. Nimbot and SmartSling have completed prototype development and are currently in the process of applying for medical device registration certificates. Meanwhile, in accordance with the regulations of the National Medical Products Administration (NMPA), SmartColor is not currently regulated as a medical device; it has achieved mass production and entered the market.

With the sales of ArmGuider and Smartcolor, Shanghai ZD Medical Technology Co., Ltd. needs to implement and operate a quality management system for medical device production on one hand, continuously manufacturing high-quality products; on the other hand, it must sustain R&D efforts for new products to maintain its ongoing innovation capability and product competitiveness. Furthermore, the expansion of marketing and sales channels marks a fresh start for the company.

“Talent is currently our biggest challenge,” Wang Daoyu told VCBeat. Expanding the team presents a significant difficulty at this stage. On one hand, there is a scarcity of professionals in the specialized field of rehabilitation in China; most new hires require extensive training and development, making it difficult for them to be immediately productive. On the other hand, there is also a relative shortage of marketing and sales talent specializing in independent high-end rehabilitation products in the domestic market. To address this, Shanghai ZD Medical Technology Co., Ltd. is not only engaging with distributors of traditional rehabilitation equipment with utmost sincerity but also attracting talent from other high-end medical device sectors to transition into the rehabilitation industry.

It is reported that, following this round of financing, in addition to expanding its team, ZD Medical has primarily accomplished the following two initiatives:

First, facilitate the commercialization of ten innovative products from ZD Medical to establish a product line of intelligent rehabilitation robots. It is understood that ZD Medical has currently initiated projects for ten new products and has launched a new round of research and development and market access efforts.

Second, launch comprehensive marketing initiatives, expand national sales channels, and promote the two products already in mass production. It is reported that Shanghai ZD Medical Technology Co., Ltd. currently focuses on collaborating with distributors to deepen its presence in regional markets, investing financial resources to accelerate the clinical application of rehabilitation robots and intelligent rehabilitation solutions, and establishing a brand for high-end domestically produced rehabilitation medical devices.

Wang Daoyu stated that during his interactions with the investment team at Med-Fine Capital, his strongest impression was the shared values among all parties, particularly the mutual recognition that “companies should operate with integrity and pragmatism.” This alignment, he noted, would help Shanghai ZD Medical Technology Co., Ltd. achieve steady, healthy, and step-by-step development.

Med-Fine Capital, an investor in ZD Medical, is a specialized venture capital fund focused on the pharmaceutical, healthcare, and life sciences sectors, with assets under management of approximately RMB 1 billion. Its fund management team combines deep expertise in the pharmaceutical and healthcare industries with extensive venture capital experience, having completed investments in more than 20 companies to date.

Rehabilitation medicine has been a sector of focus for Med-Fine Capital since the first half of 2017. Su Zhonghe believes that China’s rehabilitation medical industry is characterized by a significant imbalance between supply and demand. This is evident in the strong and urgent objective demand for rehabilitation services on one hand, and the severe shortage of supply on the other, including a lack of rehabilitation hospitals, rehabilitation physicians, therapists, equipment, standards, and systemic frameworks.

According to the 2012 survey data from the World Confederation for Physical Therapy, the ratio of rehabilitation therapists to the general population in China was 1:100,000. In contrast, the ratios were 1:1,693 in the United States, 1:1,011 in Australia, 1:768 in Sweden, and 1:485 in Norway. Data from 2013 showed that there were approximately 25,000 licensed physicians specializing in rehabilitation medicine in public hospitals in China, accounting for only 0.9% of all licensed physicians. The ratio of rehabilitation physicians to the general population in China was approximately 0.4 per 100,000, which is significantly lower than the level observed in developed countries (5 per 100,000).

Addressing the pain points in the rehabilitation sector, ZD Medical’s rehabilitation robots can help alleviate the shortage of rehabilitation medical service supply to a certain extent. Its upper-limb rehabilitation robot not only guides patients with upper-limb functional impairments through effective rehabilitation but also significantly reduces the workload of healthcare professionals, thereby markedly improving the operational efficiency of rehabilitation departments.

It is reported that following this round of financing, in addition to providing financial support to ZD Medical, Med-Fine Capital will also assist ZD Medical in recruiting stronger marketing and management talent to enhance corporate governance. Furthermore, Med-Fine Capital will oversee the implementation of prudent financial strategies, enabling this young company to accelerate its path toward healthy and sustainable development. In addition, Med-Fine Capital has already invested in Julu Medical, a leading domestic provider of cardiopulmonary and diabetes rehabilitation solutions, with the expectation that the two companies will leverage their complementary strengths to achieve strategic synergy.

Su Zhonghe stated that they conducted thorough due diligence on Shanghai ZD Medical Technology Co., Ltd. and visited multiple rehabilitation robotics companies. In his view, there were four key factors that motivated Med-Fine Capital to invest in Shanghai ZD Medical Technology Co., Ltd.:

First, the team is professional, focused, and passionate, with strong learning capabilities. The core team members possess over a decade of experience in rehabilitation robot development. Su Zhonghe stated that Shanghai ZD Medical Technology Co., Ltd. boasts high technical proficiency and strong industrial design capabilities. All robotic products, from mechanical structures to control algorithms, are independently developed. By mastering underlying algorithms and logic, the company achieves high efficiency in product development, improvement, and maintenance. Furthermore, as most team members graduated from the University of Shanghai for Science and Technology, which established China’s first rehabilitation engineering program, the company can ensure a continuous influx of specialized talent in this field. Su Zhonghe emphasized that the company is R&D-driven and market-oriented, distinguishing itself from traditional low-end rehabilitation equipment manufacturers following the “trade-industry-technology” model, as well as from companies that merely chase capital trends while neglecting customers’ true intrinsic needs.

Second, the team possesses a high level of medical expertise and demonstrates a profound and precise understanding of rehabilitation medicine. Prior to project initiation, the company’s R&D team dedicates several months to conducting customer research for each product, thoroughly validating practical usage scenarios, functional requirements, interaction logic, and product safety before commencing development. This rigorous approach ensures that the final products meet the demanding requirements of the most discerning professional clients.

Third, the product portfolio is relatively diverse. The company has nearly ten high-end intelligent rehabilitation devices under continuous development and regulatory approval, forming a mix of products across different price ranges to meet the needs of various customer segments. As these products receive approval and launch in the future, they will provide distributors and end-users with more comprehensive solutions.

Fourth, the team demonstrates strong regulatory approval capabilities, with a profound understanding of regulations and efficient practical execution. The company’s first rehabilitation robot product obtained the Class II medical device registration certificate in just one and a half years.

When explaining the final decision to invest in ZD Medical, Su Zhonghe shared a small anecdote with reporters. In his view, this story intuitively demonstrates the user-friendliness and ease of use of ZD Robotics’ human-machine interaction. During its market research, Med-Fine Capital visited a military-affiliated Grade 3A hospital in Shanghai that uses ZD’s rehabilitation robots. The team had hoped to observe a patient using the ZD robot in the therapy room, but they were stopped by the department director. The director quietly informed them that the patient was a general in the recovery phase from stroke-induced hemiplegia, who had specifically requested to use the ZD robot for upper-limb functional rehabilitation training. Every afternoon, the general would arrive punctually at the therapy room and preferred not to be disturbed during her sessions. After receiving initial instructions on how to use the device, she completed all subsequent training sessions independently, requiring no assistance from therapists throughout the entire process—from mounting the device, through the training session, to dismounting.