Yosemite Clinic Secures Hundreds of Millions RMB in Series B Funding Led by Yuanjing Capital and Sherpa Healthcare Partners

VCBeat (WeChat: vcbeat) has learned that on January 30, 2019, as the Spring Festival approached, Usmile Medical officially announced the completion of its Series B financing round, amounting to hundreds of millions of yuan. This investment was led byYuanjing Capital & Sherpa CapitalJointly completed, with HyCapital serving as the exclusive financial advisor for this round of financing.

Through this financing round, Usmile Medical will be better positioned toAn attempt to expand and replicate, first withShanghai as a Model CityBuild a multi-site chain service network to become an international boutique chain of ambulatory surgery centers.

A Review of Usmile Medical’s Financing Journey: As the 2017 Spring Festival approached, the newly established Usmile Medical announced the successful completion of its Series A financing round, raising tens of millions of RMB. Investors included Legend Capital, Licheng Asset Management, and Zhengqi Investment. On April 20, 2018, Usmile Medical held a press conference to announce investment from the Medtronic China Healthcare Fund. The event marked the first anniversary of the strategic partnership between Usmile and Medtronic Minimally Invasive Therapies, with the Medtronic China Healthcare Fund leading the Series A+ financing round for Usmile Medical’s parent company.

From the perspective of its development history, the key milestone events for Usmile have been the strategic layouts completed based on Usmile’s core value proposition, including:

1. Established a formal medical consortium with Shanghai Tenth People’s Hospital, leveraging its expert resources, technical support, and green-channel services from a large public tertiary hospital to provide robust assurance of clinical quality and safety for the new medical institution’s operations;

2. Established a strategic partnership with Medtronic China to create a synergy of services and technology in the field of minimally invasive surgical treatment, which not only plays a positive role in the education and training of surgeons but also achieves centralized efficiency improvements in the procurement supply chain;

3. Introduce the efficient medical operations and training systems of U.S.-capital clinics, draw on advanced international experience in general practice/family medicine teams and care delivery models, and establish a departmental structure featuring effective collaboration between general practice and multiple specialties.

As a central city with an international standing in healthcare, Shanghai has recently introduced a series of innovative and favorable policies to encourage private medical practice. The Shanghai Municipal Government’s “50 Measures for the Health Service Industry” implements President Xi Jinping’s “Healthy China” development strategy, encouraging the establishment of distinctive private medical institutions centered on “renowned physicians and advanced techniques.” Key specialties such as general surgery, orthopedics, gynecology, ophthalmology, and urology, along with minimally invasive surgical procedures, will become new focal points for specialty growth.

Founded in Pudong, Shanghai, United Family Medical Center (UFMC) has consistently leveraged its distinctive advantage of being led by medical professionals as a multi-specialty ambulatory surgery institution. From becoming China’s first independently operated ambulatory surgery center to establishing the country’s first formal medical consortium partnership with a large public tertiary hospital; from introducing U.S.-capital clinic systems to implement accessible healthcare service models, to forging a multi-specialty strategic collaboration with Medtronic in the field of minimally invasive surgical treatment, UFMC has fully integrated more industry resources along its path of premium healthcare, creating synergy and achieving win-win outcomes.

Examining the evolution of ambulatory surgery centers (ASCs) in the United States, the robust growth of day-case surgery emerged against a backdrop of tightening cost-containment measures by payers, efficiency reforms in large hospitals, and the proliferation of specialized physician (group) practices. This has given rise to diverse models, including comprehensive or specialty-focused facilities, with varying leadership structures led either by physicians or other stakeholders. In China, institutions providing minimally invasive day-case surgeries will likewise follow divergent development paths, regardless of whether they pursue a premium, niche strategy.

Compared with day surgery centers promoted by large public hospitals, independent day surgery facilities represent a significant entry point for privately run healthcare services. Mid-to-high-end medical services have entered a phase of rapid development driven by consumption upgrades. First, both private and public hospitals play a role in cultivating the market and patient base. Second, as private medical institutions, greater emphasis is placed on differentiated development relative to public hospitals, where collaboration far outweighs competition.

VCBeat has learned that the Series B financing round for Usmile Medical will be used toConstruction of a Comprehensive Hospital in the Core Area of Jing'an, Puxi, and further by providing convenient medical servicesSatellite Clinic Facilities, building a localized chain medical network with intensive operations in Shanghai, thereby better providing patients with convenient and professional services, and playing an active role in Shanghai’s development into a world-class medical center.

Pudong Usmile 

In the “Special Action Plan for Building an Asian Medical Center” recently released by the Shanghai Municipal Health Commission, measures to “accelerate the refined and humanistic development of medical services in Shanghai” are explicitly proposed. The plan particularly encourages the vigorous promotion of tiered diagnosis and treatment and the adoption of a one-stop, multidisciplinary care model. This presents boutique healthcare institutions, represented by Usmile Healthcare, with valuable opportunities for constructive interaction and collaboration with large public hospitals.

On the one hand, for patients with common, simple, and frequently occurring diseases, Usmile provides convenient primary care and day-case minimally invasive surgical services, while tertiary hospitals handle complex and intractable surgeries, forming an effective complement between the two.

On the other hand, for diagnostic and treatment programs requiring multidisciplinary collaboration, Usmile Medical can arrange for family physicians and attending specialists to join forces with industry experts, providing patients with a one-stop service experience that spans outpatient and emergency care, examinations, preoperative assessment, surgery and hospitalization, as well as postoperative rehabilitation. For example, Usmile recently launchedSports Rehabilitation Center, providing patients with an integrated diagnosis and treatment plan encompassing pain management, orthopedics, sports medicine, and rehabilitation. By initiating rehabilitation prior to surgery, this approach not only embodies Usmile’s patient-centered philosophy but also demonstrates meticulous attention to detail across all perioperative stages, thereby offering a more humanized healthcare experience than that typically found in public Grade 3A hospitals.

Puxi Usmile

It is worth noting that Usmile Medical was recognized as an “Advanced Unit in Medical Quality Management” during the 2018 quality control inspection in Pudong, Shanghai, and ranked first among private healthcare providers in quality control assessments. This achievement is closely attributed to Dr. Song Keying, the founder and surgeon, who has rigorously upheld a professional management philosophy centered on medical quality. It has also provided a high-standard framework for clinical practice and operational management, supporting Usmile’s chain expansion.

Next, the opening of the new Jing’an West Campus will elevate the depth and breadth of medical expertise to a higher level. In addition to comprehensive departmental coverage and advanced diagnostic equipment such as MRI scanners, the hospital will prominently launch 24-hour emergency services. By offering emergency care through a premium medical institution in the heart of the city, this initiative will provide Shanghai residents with seamless, convenient, and accessible emergency healthcare options.

According to available information, since its inception, Usmile Medical has assembled a clinical expert team that integrates foreign and local physicians. This team effectively combines advanced international diagnostic and treatment concepts and communication methods with refined clinical techniques, demonstrating the capability to provide accessible medical solutions to patients from various countries and regions. For each type of surgical procedure, Usmile Medical’s clinical and operational teams conduct preoperative and postoperative discussions and reviews, continuously refining and consolidating best practices into effective workflows and standardized SOPs. Currently, the institution has established specialized departments including General Practice (Family Medicine), General Surgery, Orthopedics and Sports Medicine, Gynecology, Otorhinolaryngology and Ophthalmology (ENT & Eye), Dermatology, and Medical Aesthetics.

Dr. Song Keying, founder and surgeon of Usmile Medical, stated, “When we established Usmile Medical more than two years ago, we adhered to the core values of ‘patient-centered care and physician-led practice,’ focusing on building a robust medical quality and safety system, and placing high importance on our reputation and standing among both patients and physicians. Since our opening, with the”Continuous Strengthening of the Medical, Nursing, and Anesthesia Teams, andOperational Systemcontinuous improvement, it is now time toExpansion and Deepening of the Healthcare Service Network, thereby enabling better coordination with our partner experts and medical institutions to deliver more professional and convenient services to patients. The participation of Yuanjing Capital, a professional investment firm with Alibaba’s DNA, and Sherpa Partners, a specialized healthcare investment firm, has bolstered our confidence in becoming a leader in the field of ambulatory surgery.”

Tian Min, Partner at Yuanjing Capital, stated, “We have been closely monitoring the trends and opportunities emerging from consumption upgrades in the healthcare sector. Through rigorous research and in-depth discussions with Dr. Song’s team, we believe that ambulatory surgery is a high-potential niche within the private healthcare landscape. As a pioneer, Usmile has continuously built competitive barriers and demonstrated its professional strengths. We will help the company integrate more industrial resources in the health sector to accelerate its rapid growth.”

Ouyang Xiangyu, Founding Partner of Sherpa Capital, stated, “As an investor in YouShi MeiDi Medical’s Series A round and a former board member, we have long been optimistic about the development of innovative healthcare service models in China and remain confident in Dr. Song and his team. We believe that, with the support of Sherpa Capital and the growing number of investors and partners bringing strategic resources, YouShi MeiDi will further solidify its position as the leading provider of premium ambulatory surgery services in China.”

Yosemite Clinic (hereinafter referred to as “YC”) is a boutique medical institution providing comprehensive healthcare services, with its headquarters located in the heart of Pudong, Shanghai. YC offers general practice and multi-specialty medical services, with expertise in minimally invasive surgery. The facility is equipped with advanced diagnostic equipment and features Class 100 laminar flow operating rooms that meet high cleanliness standards.

Meanwhile, YC has partnered with mainstream commercial insurers to build a professional, convenient, harmonious, and reassuring medical service platform. YC’s physicians come from around the world and provide services in multiple languages, including English, Japanese, Korean, and Chinese. Guided by its vision of “Gathering Global Elite Talent, Creating a Healthcare Haven,” Youshi Meidi Medical is committed to becoming a practice platform for outstanding physicians, working together to create a warm and comfortable healthcare haven for patients.

YouShiMeidi Medical previously secured Series A+ financing led by Medtronic China Healthcare Fund, with participation from Legend Capital, as well as Series A financing led by Legend Capital, with participation from Licheng Asset Management and Zhengqi Financial. It has also become an official partner in the medical consortium affiliated with Shanghai Tenth People’s Hospital.

Yuanjing Capital was founded in 2015. Its team comprises experts from core positions at leading internet companies and seasoned investors from top-tier Chinese venture capital firms, providing startups with practical experience and team support. Yuanjing particularly focuses on growth-stage companies at Series A and B rounds, conducting investments in both RMB and USD.

Yuanjing Capital focuses on four key areas: consumption upgrades, digital healthcare, intelligent technology, and internet innovation. Since its establishment three years ago, Yuanjing Capital has invested in well-known companies including Missfresh, Tantan, Rokid, Yitong Health, Yaoyanshe, Weimai, Yunhu Technology, and Anxin Doctor.

Sherpa Capital is a specialized healthcare investment fund established in 2018. The core team members have collaborated for many years, possessing extensive investment experience and a strong track record in China’s healthcare industry. The team is committed to being the “climbers behind the climbers,” empowering entrepreneurs to reach the pinnacle of their careers.